It is a tough slog Tuesday morning for small-cap stock-pickers as money is rotating back into the "safety" of big-cap technology stocks. The FATMANN names are all in positive territory, but breadth is 3,500-4,300 negative, and the Russell 2000 ETF (IWM) is down around 1.3%.
It is the reversal of the rotational action that many aggressive traders have enjoyed in recent months, and it makes it very tough for stock-pickers. My list of stocks that are up 10% or more is a puny 15 stocks. A few of them are NFT names and a few that are getting hype on social media.
All the hot sectors are struggling. Cannabis, gambling, bitcoin-related, small biotechnology, etc., have lost their momentum.
The good news is that many of these stocks are simply suffering from a lack of attention and short-term momentum. They have good stories and attractive fundamentals but are out of favor at the moment. The challenge is how long do you want to hold on to a "good" stock while the price action is lackluster.
I'm trading a few odds and ends, but this is dismal right now, and I'm in no hurry to add to my favorites at this point. Mogo Finance (MOGO) looks good on some acquisition news, and a few NFP plays such as GreenPro Capital (GRNQ) , Dolphin Entertainment (DLPN) and Cohn Robbins Holdings (CRHC) are on the radar, but there isn't much else.
The indices are hiding some poor action in individual stocks, but we enjoyed the reverse of that for a long time, so the shift shouldn't be a big surprise.