Small-cap stock-picking continues to drive the market higher. The Russell 2000 Small Cap Index (IWM) is up 1.33% and on the verge of hitting a new all-time high Thursday morning. The senior indices are perking up as well, but the strength of this market is in the smaller and low-priced names.
Breadth is running a little less than 2 to 1 positive, but there are over 300 new 12-month highs, and my list of stocks moving more than 10% is too long to count.
What is most notable about the action is that traders are looking high and low for new stocks to buy, and they are creating some self-fulfilling action as they chase key names
Some of the smaller stocks that I'm trading this morning include Evogene (EVGN) , Xeris Pharmaceuticals (XERS) , Pioneer Power Solutions (PPSI) , ENGlobal Corporation (ENG) , Mogo Inc. (MOGO) , Kala Pharmaceuticals (KALA) , Esports Entertainment Group (GMBL) , Wedai Ltd. (WEI) .
To trade effectively, it is still important to be selective with your picks, and it is more important to move quickly. This is a market for very aggressive, hyperactive traders right now. If you aren't flipping fast, then you have to be much more careful with entry points.
I am looking to buy some of my favorite longer-term names such as Alto Ingredients (ALTO) , Synchronoss Technologies (SNCR) , and Elys Game Technology (ELYS) on weakness but the shorter-term plays tend to be pure momentum.