Although the indices slowed late in the day, it was another solid day for the market.
Big-cap technology stocks attracted more interest, which pushed the Nasdaq 100 ETF (QQQ) into the lead while the small-caps (IWM) lagged with flattish action. There were some good continuation moves from Monday but breadth fell back to about four gainers for every three losers. Interestingly, new 12-month highs expanded a little and were over 50.
There is often a tendency to overreact to slower action even though it can be very healthy for stocks to take a rest after a strong run. Some profit-taking and rotation into strength is what happens when market players are trying to keep cash hard at work.
I continue to be impressed by the stock-picking action that I see. Some of the moves are short-lived and are volatile, but there is no doubt that there is an appetite for some new names.
Biotechnology continued to act well, there is still plenty of speculation in SPACs and EV names and there are a variety of other names of interest. I'll worry more about the overall market when the pockets of momentum dry up and selling becomes more coordinated.
The best suggestion I can make at this point is to think positively. Focus on what is working and what is going well rather than dwell on the difficulties that might arise in the future. It is very easy to spend so much time worrying about what will happen tomorrow that you miss out on the good things that are happening today.
Have a good evening. I'll see you Wednesday.
