Big cap technology and the FATMAAN names are leading this morning and driving the Nasdaq 100 (QQQ) to a new all-time high. The rest of the market is mixed, with the DJIA in the red and the Russell 2000 ETF (IWM) lagging with a loss of 0.6%. Breadth is running 3500-4300 negative, and new 12-month highs have dropped to around 350.
Some of this action is likely related to unwinding caused by the Russell Index rebalancing. We don't hear much about this in the business media, but there were trillions of dollars of stocks impacted by these moves, and there are some reverberations as the complex transactions to gather shares are unwound.
Once again, we don't have a long list of big movers, but stock picking remains the name of the game. The tricky part is that sector strength is shifting fast. Oil lead on Friday but is weak today, and genome-related stocks are doing well, as evidenced by ARK Genomic Revolution (ARKG) .
My Stock of the Week, CM Life Sciences (CMLF) , is included in the ARKG ETF and is performing well so far on increased volume.
Some of my recent favorites, like Xeris Pharmaceuticals (XERS) and Aurinia Pharmaceuticals (AUPH) , are pulling back today after a good week, but I believe it is just some healthy consolidation as small-caps reset.
One thinner name I've been accumulation is Forte Biosciences (FBRX) . The company should have some significant data in the next 10 weeks or so, and I believe that there will be some favorable anticipating as the date approaches.
Overall, it is choppy and sloppy outside the FATMAAN names, but overall it is a healthy market that needs a little rest.