We are off to a strong start Monday morning on better than 2 to 1 positive breadth. Although bonds (TLT) are weaker this morning, it isn't a problem for buyers so far. It is likely that concern about higher rates and inflation is creating a Wall of Worry dynamic for the market.
The way a Wall of Worry works is that buyers hold back due to a particular worry but when that worry doesn't have any significant market impact, buyers start to put more cash to work. That incremental buying causes more upside and then creates more worry about falling behind and thus produces more buying pressure.
The action I'm seeing so far looks to be driven more by fear of being left out than euphoric chasing. It isn't just bonds that have been a worry, there is still quite a bit of COVID pessimism out there, which seems justified in Europe and other places but not so much in the U.S. right now
I'm slowly putting more cash to work but am taking my time and am more inclined to buy dips at this point rather than chase strength. New 12-month highs have expanded to over 700, which is a good sign but the action in small-caps is not nearly as energetic as it was six weeks ago.
Some of the key names on my radar right now are CurrencyWorks (CWRK) , Ammo, Inc. (POWW) , Personalis (PSNL) , dMY Technology Group, Inc. II (DMYD) , Truelive Cannabis (TCNNF) , Agrify Corp. (AGFY) , Esports Entertainment Group (GMBL) , Gogo Inc. (GOGO) , PAVmed Inc. (PAVM) , Elys Game Technology (ELYS) , Roblox Corp. (RBLX) , Zedge, Inc. (ZDGE) , and AdvisorShares Pure US Cannabis ETF (MSOS) .