It's a Snappy Consolidation, See?

In front of the SNAP IPO set to begin trading any moment now, stocks are broadly consolidating yesterday's explosive move higher. 

A few catch-up biotech plays we had been flagging for Members, namely CARA and EXAS, are surging, while a name like ONCE remains in contention to follow suit. 

The familiar routine, however, of gauging just how shallow this consolation will remain is playing out in the small cap-dominated Russell 2000 Index, again. As long as the selling stays fairly contained, it is hard to argue that the rally is on its last legs, even with crude oil taking a hard dive lower today. 

For the most part, we are interested in monitoring which stocks are holding up and indeed acting best into the early softness this morning, for that can offer up evidence of underlying demand and potential new leaders. 

As for trading the actual SNAP IPO, with a brand new chart it is tough to view that as anything more than a spin of the roulette wheel--Which is fine for a gamble with very small size, but not with any type of serious size relative to portfolio capital (i.e. beyond twenty basis points, if that).