The indices look good, and breadth is strong at 2 to 1 positive, but momentum is mixed, as is illustrated by ARK Innovation ETF (ARKK) , which is trading down 0.7%. Traders still seem to be hesitant to aggressively chase, but lower interest rates are helping the overall move.
The best momentum on my screens right now are the U.S. cannabis plays that are referred to as Multi-State Operators (MSO). Names like Trulieve (TCNNF) , Green Thumb (GTBIF) , and Cresco Labs (CRLBF) are trading well after being mentioned in a positive story in Barron's this weekend.
Ammo, Inc. (POWW) finally announced the closing of its deal with gunbroker.com but is trading down on a 'sell the news' reaction. The company will update guidance next week and has previously said that the deal was accretive. I expect the stock to quickly find support as investors focus on some excellent numbers.
My Stock of the Week is Aurinia Pharmaceuticals (AUPH) . The stock finally turned up last week and will be announcing the first sales of its key product on Thursday. I believe it is a turning point for the stock, and I will be looking for better action.
The poor action in biotechnology has hurt quite a few stocks that I favor. The well-regarded biotechnology fund, Perceptive Life Sciences Offshore Fund Ltd, is the worst-performing fund this year with a drop of nearly 21%, which is reflective of the struggles in the sector.
It is a strange mix of action out there with many of the stocks that traders tend to favor not doing well, but the senior indices and breadth are good. We'll see how things develop as the day progresses.