The dip buyers are missing in action so far this morning as the intensity of the selling is causing some concern. Breadth is running close to 8 to 1 negative and so far there has only been very feeble bounce attempts. Last week there was rotational action that offered a safe harbor for stock pickers. This morning we are seeing correlated selling which does not offer many places to hide.
There are a few pockets of momentum like Roku (ROKU) , Zoom (ZM) , and Bandwidth (BAND) but it is very narrow. On my screens Xeris Pharmaceuticals (XERS) and Tortoise Acquisition (SHLL) are leaders.
My Stock of the Week is Nautilus (NLS) . So far it is holding up but momentum is limited due to the poor action in the market. One name I'm buying on weakness this morning is Lithium Americas (LAC) . I expect buyers to jump back in as they anticipate some positive news about LAC's lithium mine at Tesla's (TSLA) battery day.
The S&P 500 is at day lows as I write, which is not a good sign, but much of the market has already been correcting so this may be the washout that takes us to support.
I'm not making any major moves but I do see names I want to build once the market calms down. Stock picking isn't working nearly as well today and that is a warning sign we have to heed.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
Let's take a look at Axsome Therapeutics and TG Therapeutics.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.
Email
Email sent
Thank you, your email to has been sent successfully.
