We have some messy trading as we wrap up a solid week for the market. We have some rotation that was triggered by poor reports from SNAP (SNAP) and Intel (INTC) . That is pushing down the Nasdaq 100 exchange-traded fund (QQQ) and hurting some of the big-cap technology names. However, breadth is running 4,350 gainers to 3,475 decliners, and we have over 500 stocks hitting new 12-month highs as stock pickers are looking to put more money to work.
The crazy trading in a few stocks like Digital World Acquisition Corp (DWAC) and Phunware (PHUN) continue, but they have reversed hard from highs, and traders are looking for action in other areas. Some of the special purpose acquisition company names, like Power & Digital Infrastructure Acquisition Corp. (XPDI) , Decarbonization Plus Acquisition Corp III (DCRC) , Trident Acquisitions Corp. (TDAC) , Redwire Corp (RDW) , and Altimeter Growth Corp (AGC) are attracting interest, but most are having difficulty sustaining upside movement.
I continue to see quite a few thinner, small caps with limited interest despite good fundamentals. There just isn't any broadening of the buying to certain areas so far.
The good news is that this rotation and choppy action helps charts develop for the weeks ahead. The day traders may be having some difficulties outside of a few names like DWAC, but the chart development in other places looks quite good. A few examples on my screens are Beauty Health (SKIN) , Standard Lithium (SLI) , Aehr Test Systems (AEHR) .
This market has not been, as easy as the indexes have looked over the past week. There are plenty of landmines, rotations, and inconsistent action, but the technical development continues to look promising.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider some of these names to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.