The major indices are taking another hard hit this morning and breadth is running around 6-to-1 negative, but there is some interesting action out there -- and it isn't all negative. Most of the business media focus on the big-cap technology FATMAAN names. Those stocks have essentially been running the market for months, so it is understandable that they are the major obsession, but under the surface, this corrective action is creating opportunities and aggressive traders are finding good trades.
One group that is a safe haven right now is the SPAC (special purpose acquisition company), or "blank check" names. My Stock of the Week is a gambling SPAC, Landcadia Holdings II (LCA) -- and it is looking to break to a new closing high. The upcoming NFL season is a likely catalyst here.
Other SPAC names that are doing well include Tortoise Acquisition Corp. (SHLL) , Forum Merger II Corporation (FMCI) , Graf Industrial Corp (GRAF) , Nikola Corp (NKLA) , Workhorse Group Inc (WKHS) . I'm inclined to continue to trade these very aggressively.
If you want to find what is working, it is important to look beyond the big-cap technology stocks. The business reporting cadre is focused on these stocks -- and if that is all you look at, then you could miss out on some real opportunities. Take a look at SPAC names or even the Biotechnology sector (IBB) , which is looking washed out as it has been correcting for weeks.
This market may finally be seeing some corrective action, but it is not the same sort of correlated selling that was so miserable back in February and March. Focus on stock picking.