We have some rotational action hitting Monday morning with all of the FATMAAN names trading in the red while breadth is running about 5 to 3 positive, and the Russell 2000 (IWM) is up around 1.3%. Stock pickers are hard at work and looking at the secondary names that have lagged since February.
What we are seeing is a closing of the gap between some of the most extended big-caps and rotation into the beaten-up secondary names. The gap has grown very wide, but it has been narrowing for a few weeks now.
I'm focused on stock picking, as many of my favorites are doing well. On Friday, I discussed why I was buying dMY Technology Group, Inc. III (DMYI) . I have named it my Stock of the Week, and it continues to perform extremely well. Long-time favorite Ammo, Inc. (POWW) announced an increase in revenue guidance for the third quarter, and Xeris Pharmaceuticals (XERS) is up due to a recall of a competitive product.
Traders continue to hunt for good action, and I expect to see more strength in secondary stocks as we head into earnings season. I'll be looking for more buys as the day progresses.
