Rotational action dominated the market Monday, as oil and energy led to the upside, while big-cap technology and growth names struggled.
Small caps continued to do well, with the Russell 2000 ETF (IWM) gaining 1.4%. There was a long list of stocks up more than 10%, but many of those were small oil-related names and some electric vehicle plays.
The FATMAAN names struggled, and the high-beta growth stocks were weak, but they had a good bounce last week, and much of the action looks like consolidation as we wrap up the month.
What was most notable about the market action was that stock pickers continued to dominate the action. They rotated into some special purpose acquisition company, oil, and some other odds and ends, but they have plenty of cash and are looking for places to put it on a short-term basis.
The key to this market is to stay focused on the price action and not worry too much about the bullish and bearish narratives. It is quite obvious that money is flowing into stock picking, and that is where you will find the best results.
Have a good evening. I'll see you tomorrow.