Trading action Tuesday continued to be mixed with a negative bias. Breadth is slipping and is now about 2,900 gainers to 4,450 decliners.
New 12-month lows are still rather small but have expanded to around 70. There is some rotation into the FATMAAN names, which is helping the Nasdaq to outperform but if you looking for pockets of momentum there aren't many.
One stock on my radar with a good bounce is Tattooed Chef (TTCF) . This recent SPAC (special purpose acquisition company) has fully completed its merger but has been caught up in the negative bias of the group.
Tattooed Chef is a fast-growing provider of plant-based foods. It just opened an online store on Monday and should continue to attract interest once it starts trading without regard to its SPAC history.
TTCF fell sharply Monday but has found good support Tuesday and is up nicely. There is now support around the $16 level and that should make it easier to build a position moving forward.
When bottom fishing, the first bounce may be the biggest but it is often the subsequent bounces that are easier to catch. I'll be watching TTCF for a pullback to add to my entry.
One of the issues with recent SPACs such as TTCF is they don't have analyst coverage and there is limited fundamental information.
I'm not adding to my position right now but will be watching for pullbacks.