So far today we have a rather anemic bounce try, but breadth isn't bad at around 4,000 gainers to 2,500 decliners. New 12-month highs are sharply lower, at 225, and the FAANG names in particular are not showing much of a rebound.
The most notable difference is that the pockets of speculative action are narrower and weaker. A big part of this is being caused by the chaos in the cryptocurrency market. There has been some panic in that space over the last 24 hours and it is being exacerbated by the problems with trading platforms.
When the market crashed in 1987 a big part of the problem was that people were unable to contact their brokers. Phones would ring and no one would answer. When they finally did get through there was a tendency to just dump everything. Even if you were inclined to buy into the teeth of the decline it was hard to do because orders were not being processed.
The crypto market is seeing much the same action today. People are afraid platforms will go down again and they want to escape when they can. Traders like me have no interest in trying to jump in as we can't trust the platforms.
It was bound to happen sooner or later. In the long run it will hasten the washout and make for better trading but there is tremendous pain right now.
I still have a couple small blockchain plays but there is nothing to do in that sector right now. These stocks need to reset and then the winners will come to the forefront.
It is a relief to see this market reset as it gives us some time to look harder for new opportunities into earnings season. One name that is popping up on my screens today is Ichor Holdings (ICHR) . I've mentioned ICHR for a while as it is very cheap based on earnings.
Ichor guided up today and should see upside to next year's consensus EPS estimate of $3.38, which would be 37% growth. Revenues in the third quarter of 2017 were up 56%, year to year. The stock has a trailing P/E of around 11 but it is thinly traded and has been under pressure with the chip sector. I'm adding some shares today.
I don't expect too many new buys today so I'll be digging deeper into some new names.