Flippers Hit Early Strength but Dip Buyers Are Showing Some Interest

The issue now is whether stocks and indices can find support before giving back too much of yesterday's gains.

After a solid day of gains on Wednesday for many small-cap, growth, and speculative names, there is flipping into early strength this morning. It has been a while since traders have had a change to lock in some gains so it isn't too surprising they are doing so.

The issue now is whether stocks and indices can find support before giving back too much of yesterday's gains. As long as things don't move too close to yesterday's lows it will still be a technical positive.

Momentum has slowed quite a bit this morning but small-caps are exhibiting some relative strength. Breadth is running around 3400 gainers to 4000 decliners and the pockets of momentum are quite narrow once again. The FATMAAN names are looking slow and lazy.

I'm focused on finding some positions to add as the action develops. Upstart Holdings (UPST) is seeing some strength and I'd like to add that on any pullback. Ammo (POWW) has an initial buy and $9 target from Lake Street. They should close the acquisition of gunbroker.com any time which should give it a boost as well. Gogo (GOGO) is an interesting under the radar play I've highlighted in the past. They have paid off some high interest debt and William Blair says the shares are 'mispriced'. Yalla Group (YALA) is coming off support and challenging 50-day simple moving average overhead.

We'll see if some support can kick in here now that the flippers have done their thing. I'll be hunting for more buys as the day continues.

At the time of publication, James "Rev Shark" DePorre was Long UPST, POWW, GOGO, YALA.