The market is in a holding pattern as it awaits the first trade in Coinbase (COIN) . Indications are that it will trade around $370 or so, which is well over the reference price of $250 but not as exuberant as some market pundits have predicted.
This deal is sucking up all the oxygen in the market right now, but overall the action is an improvement. The big difference today is that breadth is very good at around 5570 gainers to 2225 decliners, and new 12-month highs have expanded to nearly 800 names. Many of the small-caps that have been lagging lately look like they have found support and are in position to recover.
The big banks that reported this morning - most notably Goldman Sachs (GS) and Wells Fargo (WFC) - are holding up well. Bed Bath & Beyond (BBBY) is a disappointment, but that doesn't seem to be having any major impact on retail.
Small-caps and many other sectors have been correcting for around two months now. This is feeling like some sort of bottoming is taking place. The upcoming earnings reports for many will help to stem concerns that there are fundamental problems for stocks that have been under pressure for quite a while.
A few names I've been adding to today are Roblox (RBLX) which spiked yesterday on news of a partnership with Hasbro (HAS) . The stock pulled back today on no news. I think this will be a key growth name going forward, and I will continue to build
Ammo, Inc (POWW) I've mentioned many times. It is very close to closing a takeover with gunbrokers.com. Management has already stated the deal will be accretive to earnings. I suspect that revised estimates will support higher prices here fairly fast.
Forte Biosciences (FBRX) is developing a treatment for atopic dermatitis. This has been my top 'sleeper' biotechnology name for the year. Data is coming sometime, probably in the third quarter, but anticipation is already building. I continue to look for opportunities to build my position on weakness. It trades very thinly and can be quite volatile which can present some trading opportunities in the short term.