Breadth is running negative again, and there are more stocks hitting new 12-month lows than highs. Still, the selling is not nearly as intense Wednesday. The pockets of strong momentum are very limited, with just around 15 stocks up more than 10%, and action among high-P/E growth stocks is still very weak.
The market still has this huge disparity between the indices and many individual stocks, but it is not likely to deal with that in a very systematic or logical way. It is going to stay unresolved for a while, and the fact that we are in the middle of the dog days of summer doesn't help. There isn't much interest in making big moves right now.
I'm making some quicker trades and was able to take advantage of some pullbacks in stocks with good earnings such as Ammo, Inc. (POWW) and Elys Game Technology (ELYS) , but my time frames are short, and I'm leaving plenty of room to add to positions the I favor. I do not think we are going to see sustained bounces in small-caps or growth stocks right away, and if there is some strength, it is likely to be sold as flippers and bottom-fishers take fast gains.
One new position I added today was ZIM Integrated Shipping Services (ZIM) , which posted great results and increased guidance. Shipping demand is unprecedented and likely to continue for some time.
I'm optimistic about the opportunities to develop, but I believe the best approach will be very patient accumulation as we head into the third-quarter earnings season in October.
For day traders and flippers, it is a very limited market right now, and they will likely stay frustrated for a while longer. That is just the nature of the market at times, and it is important to stay patient and maintain a positive mindset.