The DJIA was slightly negative earlier Friday morning which may cause some market players to think that there isn't much going on, but if you dig a little deeper there is some very positive action. Most notable is that breadth is running about 4800 gainers to 2100 losers and there is a very strong technical breakout in the semiconductor section (SMH). In addition, the Nasdaq and Russell 2000 are both trading up close to 0.7%.
As I discussed in my opening post, this is trading range action and the focus should be on strong technical action in individual stocks. A good example is Aurora Cannabis (ACB) which I discussed buying on Wednesday. It is making a higher high today as the breakout has digested.
Several other names I've discussed recently like Zscaler (ZS) , Pareteum (TEUM) and StoneCo (STNE) continue to exhibit good momentum. I've rebuilt a position in Bloom Energy (BE) as it has pulled back off recent highs. We had a good trade there and it looks to be setting up well. HyreCar (HYRE) has been very volatile but continues to attract attention into the upcoming Lyft IPO.
The easiest mistake to make right now is to wallow in bearish predictions and miss out on the trading action. One of the main themes I've emphasized this week is the opportunity cost of sitting on the sidelines and anticipating disaster. We have another illustration of it today.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.
Email
Email sent
Thank you, your email to has been sent successfully.
