The second quarter of 2021 is starting on an upbeat note. Stock pickers are back, and breadth is very robust, 5500 gainers to 2000 decliners. New 12-month highs are still suppressed due to all the recent corrective action but it is back over 200 this morning. The list of 10% movers also is still fairly short, but confidence and fear of missing out, looks to be building.
The first day of a new quarter often sees a boost from inflows from pension and 401k plans, but it is helpful when that is coinciding with many stocks that have already suffered deep corrections. It is nice to see the broad selling pressure that was weighing on small-caps for the past month start to lift.
I've been making some additions this morning. One of my recent favorites AMMO (POWW) , announced increased guidance for the fourth quarter and reiterated that business is strong. They should finalize a takeover of gunbroker.com by the end of the month, and that will be an additional catalyst.
One new buy this morning is Roblox (RBLX) . I see support there around $64 and will look to build that as it develops from here.
I also added to positions in CurrencyWorks (CWRK) , Mogo (MOGO) , ASLAN Pharmaceuticals (ASLN) , and a few others, but I want to see what the action looks like this afternoon. It is likely it will slow as many market participants get a head start on the long weekend.
This is the third day in a row with better small-cap action, and that is promising, but we don't' want to be overconfident about the potential for sustained momentum.