There is some mildly positive action to start the week. Breadth is positive and there are about 160 new 12-month highs, but the FAANG stocks aren't doing much, and the Russell2000 ETF (IWM) is fading to intraday lows. There are some movers in the biotechnology sector following news released at the ASH convention, but it is the cryptocurrency and blockchain stocks were the action is.
There are not that many stocks that are leveraged to the cryptocurrency and blockchain frenzy, so they tend to move quickly when they are active. Bitcoin Investment (GBTC) is a direct investment in Biocoin through a closed end fund.
The other names that are actively traded as crypto and blockchain names are: Overstock (OSTK) , Global Growth (GROW) , Social Reality (SRAX) , Riot Blockchain (RIOT) , Xunlei (XNET) , Marathon Patent Group (MARA) and Seven Stars Cloud (SSC) .
Some of the claims made about how these companies will actually make money are questioned, but for short trades that is often a secondary issue.
The one name I feel has the best fundamental argument is Overstock, which I have named my Stock of the Week. What is really helping to move the stock today is news that Morgan Stanley (MS) has taken an 11.4% stake in the company.
I am searching hard for new entries in small caps. As I discussed in my opening column, this is a great time, seasonally, for small-caps. If you can find the right setups, the odds are in your favor. I have to do some digging, but I have money to put to work, and am looking hard for the right vehicles. So far, it is the blockchain names that attracting most of the speculative interest.