From Bobby's Room to Ivey's Room

There is a fairly clear rotation playing out today, with money coming out of some of the more prominent Nasdaq technology issues and rotating down to biotechnology and pharma stocks. 

Even with FANG names FB AMZN GOOGL NFLX off session lows as I write this, the QQQ ETF is still in the red while many biotechs squeeze higher off recent base bottoms.

Moreover, medical device plays, as we noted last week, are hot as can be, propelling the XLV ETF up 1.5% at the moment. 

Headed into the heart of the afternoon portion of today's session, I am looking to see whether the rotation continues to play out, in terms of seeking out fresh ideas for longs which have not yet run away to stretched conditions. 

So let's look further down the Strip, beyond the Bellagio and towards the Aria. 

ARIA, a heavily-shorted biotech, is basing fairly well on its daily chart, below, and is capable of a violent squeeze over $6.70 to follow suit in terms of the sharp upside moves we are seeing out of BLUE CLDX KITE today, and others. 

It is perfectly reasonable to not have faith that these biotech/pharma moves have legs (although device plays like ISRG are sporting quality overall charts). But the key is not to fight the tape with these rotations, given the very high shorts positions in many of these biotechs which could easily wreak havoc on bears before we reach a potential "sell in May" scenario.