The market action is mixed this morning with fairly small moves in the indices, slightly positive breath, and a decline in new 12-month highs to under 400. The pockets of momentum have also cooled off with fewer stocks moving more than 10% intraday. The SPAC trading is mixed and most of the big movers are small biotechs and oils.
It has been a very strong run recently and I'm doing some major repositioning and I lock in gains and reduce the number of positions I'm holding. I'm not bearish but my goal is to keep my accounts as close to highs as possible and to do that requires some periodic reposition. I find it quite helpful to periodically dump inventory - not because it is technically broken - but to allow myself to reset mentally.
I still see plenty of stocks that look solid technically and fundamentally, and I will be buying some after I reset mentally and clean up my inventory. I see no reason to be bearish at this point, although as I discussed this morning I am a little concerned about all the supply that is coming into this market in the next few weeks.
One position I added to this morning is Pacific Ethanol (PEIX) . This is a deep value play that has been acting poorly but I've been day trading it quite a bit. One thing that is not well known about ethanol is that it can be used for cooling. (See: Ethanol's Essential Role in Delivering the Covid-19 vaccine.)
Other than that I've only made a few minor buys this morning. I did add a little to Trine Acquisition (TRNE) after reducing it yesterday and will continue to trade it aggressively.