We have encouraging trading action again Thursday on breadth of better than 2 to 1 positive, although the small-caps are not quite as vigorous as Wednesday. That may change as the day progresses and some FOMO -- Fear of Missing Out -- starts to develop, but right now, there seems to be more interest in protecting a good day of gains than pushing for more.
One illustration of how small-caps may have bottomed is that the number of stocks hitting new 12-month lows is just 27. There just isn't much downside left in most of the stocks that have already been hit hard.
New highs are around 375, which is pretty sedate given where the indices are, but that reflects the narrowness of the recent strength. The FATMAAN names are holding up fairly well, with the exception of Facebook (FB) , but they still seem to have some lingering inclination toward "sell the news" after their earnings reports.
There is some good follow-through in Elys Game Technology (ELYS) and Performant Financial (PFMT) , both of which I have recently highlighted.
I am doing some bottom fishing in a new name today, Seres Therapeutics (MCRB) . The company's stock dropped sharply when one of its drugs failed in a trial, but it has other drugs, and analysts have mostly maintained good Price targets such as $32 at Piper and $29 at Canaccord. The company has earnings next week and will update what it is doing then. I expect it will offer some reassurance about their primary product.
Another stock I'm nibbling at Thursday morning is at the other end of the spectrum and is blasting to highs. LendingClub (LC) had blowout numbers and guidance and is up sharply on the news. I started an initial position and will be looking for entries as it develops.
