The action remains slow, and breadth is still running negative at around 32-46, but there has been some improvement, and bitcoin even managed to substantially cut its losses.
We have interest in stock picking, but it is selective, and the pockets of momentum are limited. There aren't any strong themes, and even the meme names have lost much of their energy, but if you stay selective and keep time frames tight, then it isn't a bad environment.
Here are a few names that I'm slowly accumulating and the reasons why:
First is Forte Biosciences (FBRX) . FBRX has had very good early results with a drug that treats atopic dermatitis. This is a big market, and there will be some key data coming in the third quarter. I expect that anticipation of the news will eventually start to drive the stock. It has been a good buy on weakness, and I'm adding some shares now as it pulls back to its 50-day simple moving average. The stock will be added to the Russell 2000 on Friday, and I expect that addition will create some buying demand in the near term.
Second is CM Life Sciences (CMLF) . This is a SPAC -- or special purpose acquisition company -- that is acquiring Sema4, a "health intelligence" company that develops a suite of next-generation, data-driven diagnostic tools. Unlike most SPACs, CMLF has not traded near its $10 net asset value. The deal should close in July, and I will be looking for entry points on pullbacks.
Third on the list is Elys Game Technology (ELYS) , a name I've mentioned quite often. It is close to receiving approval in Washington, D.C., to offer direct sports betting in bars and restaurants. The approval process has been dragging out, and the stock has been drifting to support at the 200-day, but some positive news flow should be coming eventually.
I see several other names of interest that I want to watch closely as they develop, but the key right now is patience. The setups will come, but the market environment is not supportive of chasing right now.