We have some classic holiday trading today in small-caps, which is being aided by generally strong action in the broad market. Breadth is very strong as it nears 3 to 1 positive and there is a good supply of new 12-month highs as well.
While the business media is focused on the indices and other news like the Time-Warner Inc (TWX) merger talk, the real excitement is in small-cap names that are enjoying some very aggressive speculative buying.
I mentioned Riot Blockchain, Inc (RIOT) on Friday as a potential holiday play. That stock has now made a 50% move in the last two days and is on pace for record volume today. Blockchain is the big theme right now and there are some other plays to consider -- such as Social Reality, Inc (SRAX) , Overstock.com Inc (OSTK) and U.S. Global Investors, Inc (GROW) -- that are benefiting.
It is a little overwhelming when there is so much small-cap action -- and they can turn quickly -- but this is a great environment for small-cap stock picking right now. Enjoy it while it lasts, because it won't last long.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider RIOT, SRAX and GROW to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.