The rotation back into small-caps that started last week is continuing this morning. The Russell 2000 ETF (IWM) , with a gain of 0.84%, is leading the indices, but the best evidence of small-cap strength is breadth which is running about 5000 gainers to 2570 decliners. There are also over 700 names hitting new 12-month highs.
Groups like biotechnology, gambling, EVs, and SPACs are acting better, and the pockets of speculation action are finally improving. There is still some uncertainty and nervousness, which isn't bad as it helps to create a little 'climb the wall of worry' action. Bitcoin (GBTC) underwent a very sharp reversal after hitting bear market territory this weekend, and that is probably helping the speculative mood this morning.
My Stock of the Week is Yalla Group (YALA) which is a Middle East, Northern Africa social media play with a big short position. It is working to move through its 50-day simple moving average.
I'm making some quicker trades and will look to add to some of my favorites if they continue to hold up. It is a bit more volatile right now than I'd like. I added again to Aurinia Pharmaceuticals (AUPH) and like the action in Draganfly (DFLYF) . I'm still waiting for Ammo (POWW) to close its deal with gunbroker.com. Closing these deals is a tough task as there are so many administrative details.
With small-caps finally showing some relative strength, I'm feeling better about more aggressive stock picking, but I'm staying selective.