The trading continues to be extremely difficult as we start the new week. Small-caps and speculative names still aren't finding much support, although they have been downtrending for weeks.
Breadth is running about 2-3 negative, and my list of stocks up more than 10% is still extremely limited.
I don't recall ever experiencing a market where sentiment among traders was this negative while the major indices have been so strong. It is a very peculiar mix and is probably due in part to many of the new "social media traders" finding out that trading in high-beta small-caps isn't as nearly as simple or as easy as it looked about seven weeks ago.
The S&P 500 and DJIA rolled over after a brief, early bounce try, but momentum in big-caps looks like it has cooled off as well. There isn't a rush for the exits, but there is a lack of bids.
Bitcoin (GBTC) and Coinbase (COIN) were hit after the drama this weekend that sent cryptocurrencies down sharply. They are trying to bounce, but that action negatively impacted sentiment, and there is some hesitancy to jump back in. Speculative trading in both equities and cryptocurrencies has been very difficult lately.
My game plan right now is to not do much. There doesn't seem to be enough support for bottom fishing, but many stocks are already deep into bear markets and should have some support coming into play. One thing is for certain right now -- fundamentals and valuation don't matter. They are selling everything right now without much regard for individual merit.
Two names on my radar are in the gaming sector, Roblox (RBLX) and Enthusiast Gaming Holdings (ENGMF) . They both are showing some relative strength, but there isn't any strong upside momentum to be found.
