We start the day with some 'gap and churn' action. Stocks jumped sharply at the open but are now trading in a tight range and not gaining much additional momentum. Breadth is quite good with 5400 gainers to 2150 decliners, but the list of stocks moving up more than 10% is less than 20 names. There is very broad strength but not much speculative chasing. This action is not at all 'frothy,' which is a common contrary indicator that the bears embrace.
The best action is in the bigger cap, high beta, growth names. Some on my radar include AppLovin (APP) , DermTech (DMTK) , TaskUs (TASK) , Upstart Holdings (UPST) , The Trade Desk (TTD) , Beam Therapeutics (BEAM) , etc.
These are the sort of names held by the ARK Innovation ETF (ARKK) , which is outperforming with a move of around 2.25%. It has been a while since these types of growth names have been leaders, but there is interest in them today.
I'm making some shorter-term trades and have not been too aggressive today. One name I'm looking at in speculative small-caps is Hall of Fame Resort & Entertainment (HOFV) . This was a very poorly timed SPAC play that was hit hard by the pandemic but is now a play on NFTs as well as football. I'm looking for a break out of the trading range that has developed over the past month.
Right now, the hot group is bigger cap, high beta, growth. The question will be whether that can sustain some momentum. Many of these names are still well off February highs.