We have mixed action with breadth running about 3250 to 4400 negative, but there is no rush for the exits, and dip-buyers are lurking lower.
This sort of action often lures in bears that have been anticipating some corrective action, but when it does take hold, they turn into short squeeze fodder. The S&P 500 is already hitting new intraday highs.
As I discussed in my opening post, I will be watching for an intraday reverse to the downside and then some lower lows to signal that a correction may gain a little traction. I expect support to develop very quickly, but there may be a downside trade for the long-suffering bears that move quickly.
There isn't much of interest on my screens at the moment. Oils have bounced back, and I'm looking to add to my position in Northern Oil and Gas (NOG) . NIO (NIO) , the Chinese EV play, is acting well, and Blade Air Mobility (BLDE) , which provides helicopter transport, is exhibiting good relative strength. I'm interested in rebuilding a position in IonQ (IONQ) , but there is a PIPE unlock that may keep it under pressure for a bit. Urban-gro (UGRO) had a great earnings report but trades annoyingly thin and is hard to trade. Small biotechnology is developing well, and my technical pick today was BELLUS Health (BLU) . I want to build up Ocuphire Pharma (OCUP) that sold off on good data yesterday.
The market and many stocks need rest, and hopefully it can take place without a lot of drama or volatility.
(Please note that due to factors including low market capitalization and/or insufficient public float, we consider UGRO to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.)
