Following news that a $1.9 trillion stimulus bill is likely to be passed later this week, we have choppy, rotational action so far this morning. Bonds are under pressure again, and the rotation out of big-cap, high-beta technology names like Nvidia (NVDA) , Zoom (ZM) , Apple (AAPL) , and Facebook (FB) continues.
Some of that money is rotating financials and small caps, but it is not aggressive buying. Some of the recent leading sectors like cannabis, biotechnology, and SPACs are still struggling, but there is interest in bitcoin-related names and a few other random names. Momentum is nowhere near where it was a few weeks ago, but there are a couple of dozen stocks up more than 10%. Breadth has improved nicely off early levels and is running 4775 gainers to 2800 decliners.
What the market needs is stabilizing and support in the FATMAAN names and the Nasdaq 100 ETF (QQQ) . The action is becoming less correlated, and there is more stock-picking taking place, but it is very choppy.
So far this morning, I've been focused on some very short term trading into the volatility, but I will likely start building back up some longer-term positions in names like Village Farms (VFF) , HyreCar (HYRE) , Esports Entertainment (GMBL) , Ocular (OCUL) , Golden Nugget Online Gaming (GNOG) , AMMO (POWW) , Enthusiast Gaming (ENGMF) , and others if the indices stay green and show some strength late in the day.