Market action in front of the Fed interest rate decision is typically slow and that is the case again this morning. The most interesting development is that all of the FATMAAN names are trading negative and the Nasdaq 100 (QQQ) is down around 0.6%, but breadth is quite good with around 5400 gainers to 1865 decliners. That action is reflected in the small-cap Russell 2000 ETF (IWM) which is trading up 0.65%
I've been repetitive on this point recently but the action today is supportive of the observation that it's a market for stock pickers and not market timers. It is impressive that breadth can be so strong while the FATMAAN names are so weak. There is cash out there looking for a place to go even though the big-cap technology names are poor.
I continue to focus on stock picking and have plenty of good action on my screens. That is what determines my market bias and based on the stocks I'm holding I'm maintaining a bullish bias.
One new buy I added to this morning is B Riley Principal Merger Corp II (BMRG) . This is a SPAC in the energy storage space that is waiting to close a deal. There is limited downside in case the deal falls apart but likely some substantial upside once the deal is finalized. The stock could languish for a while until news is released but the risk/return ratio is very attractive.
Many other names I've mentioned continue to act quite well. Lithium Americas (LAC) continues to run up into the Tesla (TSLA) Battery Day announcements. SPACs like Forum Merger (FMCI) , Workhorse (WKHS) and Kensington Acquisition (KCAC) look good. Biotechnology names such as MyoKardia (MYOK) and Personalis (PSNL) are trending higher.
Don't be blinded by the FATMAAN names, there is plenty of strong action out there.
