The Dow Jones industrial average, S&P 500, and Nasdaq all finished the day with losses, but breadth was positive, primarily due to strength in the small-cap Russell 2000 exchange-traded fund (IWM) . While, there was some inclination to take profits after a strong two-day run, the pockets of speculative action kept sentiment positive and traders busy.
Probably the best illustration of the positive speculative sentiment was bitcoin. Grayscale Bitcoin Trust (GBTC) traded up nearly 7% and to the highest levels since a parabolic move in 2017 to 2018. Some of the "junky" sympathy names, such as Riot Blockchain (RIOT) attracted much attention, as well.
FATMAAN names were mixed, good earnings from Walmart (WMT) and Home Depot (HD) were sold, and traders that chased Tesla (TSLA) on news of its index addition were bagholders. The best action In this market was in secondary names, such as electric vehicles, cannabis, blockchain, and some other odds and ends.
As long as there is this underlying speculative interest, it will be difficult for the indexes to gain downside momentum. The rotation action is still quite intense, but that is what happens in healthy markets, as they undergo a transition to new leadership.
There is some frothy action and the indexes could use more rest, but traders don't want to quit and they are going to determine what happens next.
Have a good evening. I'll see you tomorrow.