The Dow Jones industrial average, S&P 500, and Nasdaq all lost some ground Tuesday, but breadth improved with 5,000 gainers to 3,100 decliners as the selling pressure on small-cap stocks finally relented. It was not an energetic snap-back rally for the Russell 2000 (IWM) , but at least there was a little more action for stock pickers.
There are still end-of-the-quarter reverberations and some fall-out from the massive hedge fund blowup, but at least traders were not cowering in the corner again as stocks went birdless. There were some signs of support, but it was tentative at best.
The biggest problem for stock pickers is that there still aren't any good themes. There was some decent bounce in a few small biotechnology names like PavMed (PAVM) , Seelos Therapeutics (SEEL) , and Personalis (PSNL) , but most of the charts in the group are busted. The U.S.-based pot names were a blight on the market today as Green Thumb Industries (GTBIF) was struggling with a negative newspaper report bases on rumors. Special purpose acquisition companies are still sputtering, but there just isn't much downside left in that group.
With the quarter wrapping up, there will be better conditions for a change in the tone of the trading, but macro matters are driving this action, and until that shifts, it is going to be tough to focus on stock picking again.
Have a good evening. I'll see you tomorrow.
