We have a very good example today of why I keep preaching to stay focused on stock picking and the action in individual stocks.
While the S&P 500 and Nasdaq are struggling, the Russell 2000 is up 1.75%, and breadth is running very strong at 5,700 gainers to 2,200 decliners. There are almost 500 stocks hitting new 12-month highs.
I've been yammering about the potential for rotation into small-caps for quite a while, and that is what we are seeing today.
I'm extremely busy with a variety of trades. Growth names such as Marqeta (MQ) and Matterport (MTTR) are doing well. The Biotechnology ETF (IBB) is coming off the lows. SPAC names continue to draw attention, including IonQ (IONQ) , Decarbonization Plus Acquisition Corporation III (DCRC) and Humacyte (HUMA) . Cryptocurrency is struggling, but I'm eyeing Hut 8 Mining (HUT) and Cipher Mining (CIFR) .
Small-cap value names I favor, including Elys Game Technology (ELYS) , Redwire (RDW) , and Ammo, Inc. (POWW) , are looking good.
There is so much going on with trading in individual names that it is a little overwhelming.
My Stock of the Week is HUMA. Like IONQ, I believe that HUMA is on the cutting edge of new technology. It is focused on regenerative medicine, and its long-term prospects are substantial, in my view.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider several of these names to be a 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.
