The negative action in The Boeing Co. (BA) is covering up some of the positive action Monday morning, but the buyers are extremely active and breadth is very strong, with over 4,900 gainers to 1,900 decliners.
One negative is that small-caps are lagging. They led the downside last week and are in much worse technical shape than the senior indices.
After being down every day last week, a bounce during option expiration week is not surprising. The best bounces always occur in poor markets, and the action today has that feel to it.
The market beast wants you to believe the selling last week was just an aberration, and that everything is now back on track. While this bounce action does look good, we shouldn't be too trusting of it.
I haven't been too active Monday morning, but names like Zscaler, Inc. (ZS) , Bloom Energy Corp. (BE) , StoneCo Ltd. (STNE) , Voyager Therapeutics, Inc. (VYGR) , Sea Limited (SE) and Pareteum Corp. (TEUM) , are on my radar.
My game plan is to be very careful about chasing strength and to focus on buying lower-volume pullbacks instead.
The S&P 500 has been going straight up all morning and is running over anyone that is trying to fade the strength. Last week's shorts have moved to the sidelines and are letting the bounce develop