Market players have not forgotten how to 'buy the dip'. The poor open this morning has attracted immediate buying interest and has the indices well off their early lows. They are still in negative territory and breadth is solidly negative but there is a steady trend higher.
Dip buying tends to beget further buying as anxiety grows over being left behind. It makes for some great trades but it is surprising how quickly any pullbacks will be bought. Two names on my radar this morning were Turtle Beach (HEAR) and iQIYI (IQ) , but both barely were negative before the buyers jumped in.
A number of other small caps that I'm mentioned lately such as Clearside (CLSD) and Enphase Energy (ENPH) are doing well. A new name of interest that I'm watching is HUYA (HUYA) . Bilibili (BILI) is also of interest but has earnings tonight.
There is some surprisingly good trading action in individual stocks but we shall see if the dip buyers stick around. Buying the weak open is almost reflexive since it has worked so well for so long. From a longer term perspective, it will be the close that counts. If this bounce is used for some quick flips it will change market sentiment quickly.
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Though Nvidia's sales guidance was below expectations, management indicates that sales to desktop gamers and cloud giants will be strong this quarter.
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