After aggressive selling on Wednesday, we have some bounce action Thursday morning. Breadth is running about 4 to 1 positive but what is most notable is that the most oversold stocks are seeing the best bounces. The Russell 2000 ETF ( (IWM) ETF) is up over 2% while the DJIA is up around 1.4%.
The biggest challenge for traders recently has been trying to navigate a rotational correction that was hitting various areas of the market at different times. The selling was more correlated on Wednesday and that may have been what was needed to help put in some support for stocks that have been suffering from relative weakness.
I'm doing some bottom fishing but am moving very incrementally. I see too many stocks that are being sold aggressively into positive news. Good examples are Upstart Holdings (UPST) and Enthusiast Gaming Holdings (EGLX) , which I recently discussed here. Both are names I want to accumulate but it looks better to do so on weakness than on strength.
My Shark Technical buy today was Camping World (CWH) , which had a great earnings report but has sold off on interest-rate concerns and rotational action. It offered an entry at support levels Thursday morning.
I am feeling better about doing more buying in the small-cap area as so many of these names are very oversold but there is no rush to put big money to work. Partial buys are the way to go right now.