Interesting Correlations

Despite quite a few software and healthcare growth standouts continuing to act well, be it the likes of SMAR TWLO or a big-time winner from earlier the year, Tandem Diabetes Care, below on its daily timeframe, you get the sense that broad market concerns are keeping a lid on things for now. 

As a result, I have been relegated to a wait-and-see approach with heavy cash in lieu of actively swing trading a market which clearly has other things on its mind right now than rewarding fast-growing tech plays executing on a micro level. Indeed, the macro seems to be outweighing the micro, at least for now.

But that can change quickly. And if and when it does, I have a hard time believing that TNDM will not be participating to the upside in a major way. Tandem, which develops insulin pumps, should be in the sweet spot for another healthcare push higher sometime this year, as the stock is carving out an attractive base consolidation after its prior strong run-up since the end of 2018. 

Ultimately, there seems to be a plethora of growth stocks basing like TNDM is after strong rallies in the first quarter of this year. At some point we need to see macro concerns abate for them to take off higher and provide the type of trading climate which makes taking risk worth it, in lieu of the indecisive macro-driven tape we have seen of late.