For the first time this year we have some selling action. It isn't a major rout by any means but is worse than 2 to 1 red and the number of new 12-month highs is around 200 compared to nearly 90 new 12-month lows.
What is most significant about the action so far is that it is more index driven than stock driven. Traders are playing this action with index ETFs and futures rather than dumping individual stocks. FAANG names are off their early lows and speculative stocks are holding up quite well.
The frenzy in the cryptocurrency-related names continues with Eastman Kodak (KODK) , Helios Matheson (HMNY) and Seven Stars Cloud (SSC) leading the action. Traders are also trying to find older names that may have a second wind like GAIN capital (GCAP) .
Outside the crypto names there are strong pockets in select biotechnology like old favorites Global Blood (GBT) and Sarepta (SRPT) . I have Sangamo Therapeutics (SGMO) on my radar as a potential mover.
Arista Networks (ANET) and Cheetah Mobile (CMCM) are also showing some mo.
Markets that have been as strong as this one, don't just suddenly collapse. There is still a very strong appetite for individual stocks with momentum. Stick with selective stock picking to navigate this action.
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Avoid the long side of GDRX until we see evidence of a durable bottom.
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