Stocks are off to a mixed start Monday morning, with breadth running just slightly positive. We have a reversal of some of the recent rotational action, with the Nasdaq outperforming and small-caps (IWM) lagging.
The pockets of momentum are limited with cannabis names, bitcoin-related stocks, and a few other odds and ends attracting interest. The list of 10% movers is about average, but there isn't too much trading near intraday highs.
It is a market for stock-pickers, but it's a narrow one. If you aren't selective, it is easy to be on the wrong side of the trade.
My Stock of the Week is Mogo Inc. (MOGO) , which is a Canadian-based FinTech play. Mogo is also somewhat correlated to bitcoin and cryptocurrencies, although it is more a payment processor than a pure-play on cryptos.
While the action is pretty mixed, this is what we want to see to set up the next push higher. There isn't any strong momentum, but there isn't any major weakness either. It is just consolidation that should prepare a foundation for another leg higher. With the Fed meeting coming up on Wednesday, it may be a good setup.