It was another day of feast or famine, as a small group of big-cap names drove the Nasdaq higher, and many small caps acted poorly again.
Breadth was solidly negative with around 2,500 gainers to 5,500 decliners, but some of the high-beta growth names did well while the Dow Jones industrial average and Russell 2000 lagged. There was some rotational action, but the number of stocks acting poorly did not improve at all.
Speculative money poured into Robinhood (HOOD) , primarily because speculative money was flowing in. Stocks like this love a crowd, and it was interesting to see how AMC (AMC) and GameStop (GME) traded lower as HOOD stole the "meme" crown. That "diamond hands" thing appears to have a limited lifespan.
It is a sloppy mess out there and what makes it worse is that there is enough positive action to entice market participants to keep them interested, while many other things act very poorly. The indexes do not accurately portray what is going on, and the business media mostly do not see that.
We have quite a few earnings reports hitting, but this market is not rewarding good reports very well, although that actually may lead to some good opportunities eventually.
Unfortunately, I don't think this action is going to end soon. We have a brief respite, and then we go back to the same pattern. Something new needs to happen to shake things up, and it is tough to do when we are mired in the dog days of summer.
Have a good evening. I'll be taking a little time off but will be posting on a sporadic basis.