The indices are mixed, but breadth is running strongly with around 5,300 gainers to 2,170 decliners as smaller stocks are outperforming the big boys.
There are only around 110 new 12-month highs, which is a reflection of the fact that so many of the small stocks have been in deep corrections for a while. The larger stocks are correcting, and small stocks still are down substantially, so there are few new highs right now.
This is a major shift in character than what we saw just a couple of weeks ago. The value stocks were then running higher, and growth and speculative stocks were being dumped without any real consideration of their individual merits. The stocks that many traders favored were getting crushed and could not seem to have found support.
The rotation has reversed to some extent now as growth names like ARK Innovation ETF (ARKK) have been bouncing, and speculative small stocks are acting better.
A good example of a speculative theme that is gaining traction Wednesday is non-fungible tokens (NFTs). Key stocks in the area are GameStop (GME) , Takung Art Co. (TKAT) , Mudrick Capital Acquisition Corporation II (MUDS) (read what Tim Collins has to say on MUDS here) and Hall of Fame Resort & Entertainment Co. (HOFV) . Traders are gravitating to that action Wednesday.
Also, one of my fundamental favorites, Ammo (POWW) , is pushing to test its 50-day simple moving average, and I'm watching that closely.
Although the indices are lackluster and it is a bit slow, this is a much better market for stock-pickers right now. Even the cryptocurrencies are looking better.
Join us on May 26th for Real Talk, a special Real Money webinar featuring reopening portfolio picks from Chris Versace, Stephen "Sarge" Guilfoyle and Ed Ponsi. Sign up for the webinar to see them discuss and debate their portfolios.