The shock waves caused by the election are subsiding, but we are still seeing some reverberations. There are big moves in areas such as gold, which is suffering another large hit, and the 20-Year Treasury Bond ETF (TLT) is still sinking.
Big-cap technology is trying to bounce back a bit from its recent troubles, but bottom-fishers are having limited luck so far with Alphabet (GOOGL) , Facebook (FB) and a number of others. The disconnection between small-caps (IWM) and the Nasdaq 100 (QQQ) continues to expand and is attracting quite a few traders looking for a sharp reversal to eventually occur. (Alphabet and Facebook are part of TheStreet's Action Alerts PLUS portfolio.)
Small-caps are leading again and I'm having luck with a number of names I've mentioned here. My Stock of the Week, Hudson Technologies (HDSN) , is breaking out and is up about 17%. Health Insurance Innovations (HIIQ) , which was my technical buy on Wednesday, is up 41% in two days.
I'm looking to build a position in Nvidia (NVDA) as it develops further after this blowout report. Very few stocks have been able to generate momentum this quarter after good reports, but with so few choices, the traders who prefer high relative strength NVDA may attract attention.
Chip stocks have not participated much in this rally, but I see a couple that are developing. Oclaro (OCLR) had a strong report and is looking for support. Tower Semiconductor (TSEM) is more of a value play, but that chart is developing very nicely.
This strength in small-cap names is confounding to many market players and it is painfully squeezing those who are trying to call a top.
Stock picking is working, but we really need to stay vigilant as the tremors from the election are not yet over.