The indices are seeing some upside follow-through Thursday morning but many stocks are now technically extended and that is triggering minor profit-taking. Breadth is very strong once again at around 5,300 gainers to 1,700 decliners. New 12-month highs are expanding as the indices run up and are now close to 300.
In this sort of environment, dip buyers tend to provide very strong support. The folks that have missed much of the big move upward want to jump in. While they don't want to chase stocks that are extended, they will quickly buy very shallow pullbacks. It is a psychological dynamic that helps to make strong markets sticky to the upside.
I've taken some partial profits in big recent winners such as Ocular Therapeutix (OCUL) , Nautilus (NLS) , Personalis (PSNL) , and Big 5 Sporting Goods (BGFV) , but I still have core positions and will be looking for entry points.
A couple of names on my radar this morning are Trillium Therapeutics (TRIL) ,which is developing a solid base and moving toward a new closing high over $16. The pot stocks are hot and I continue to favor Green Thumb Industries (GTBIF) and Curaleaf Holdings (CURLF) .
The best thing we could see right now is for some consolidations and pullbacks. This is a very healthy market and some rest would provide fuel for another leg higher.
