For trading purposes, there are basically two types of markets. There are index-driven markets and there are stock-picking markets.
In index-driven markets it is top-down action. Typically, there is some major news that is driving the action and most stocks will move in tandem without much regard from their individual merits.
In stock-driven markets the focus is typically on trying to produce outperformance against benchmarks by finding those stocks that are making the biggest moves. There is more attention paid to charts, sectors and fundamentals in this type of environment.
I find it helpful to draw this distinction because it assists me in determining my strategy.
Typically, poor markets are index-driven. There isn't much individual stock-picking when the indices are under pressure. Market players simply want out and they will sell without much regard to the individual merit of the stocks.
The best trading markets are those that occur when there is a general uptrend, but where institutional investors aren't just piling into indices or big-caps in order to gain more market exposure. Quite often it is on the more sedate market days when there is a positive bias that the best trading in individual stocks occurs.
Currently, we have an uptrend and a strong focus on individual stock-picking so it is working well for aggressive traders right now. The bears keep telling us this market is extended and there are all sorts of problems both economically and technically, but it doesn't matter when the focus is on stock-picking.
I continue to have success with some stocks such as GAN Ltd. (GAN) , Workhorse Group (WKHS) , Esports Entertainment (GMBL) and Trillium Therapeutics (TRIL) . The SPAC names have been resting, although Tortoise Acquisition (SHLL) announced a deal today and I'm watching for some opportunities there.
One sector on my radar is silver miners. The group has corrected recently and is now turning back up nice. A few precious metals names on my radar are Pan American Silver (PAAS) , First Majestic Silver (AG) and Kinross Gold (KGC) . I'll likely be adding to these positions soon.
The indices are fading steadily but watch for a burst of action at the close on options expiry.