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.
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