Stocks are off to a positive start Tuesday after some lackluster action on Monday. Breadth is very good with around 4,900 gainers to 2,200 decliners but the number of stocks hitting new 12-month highs has dropped sharply to around 170 and my list of stocks up 10% or more has shrunk to a couple of dozen.
One notable shift in trading is that the SPAC sector has cooled off quite a bit. There has been some frothy action in that group lately but the dip buyers are being cautious now as they pull back.
I don't think the party is over for the SPAC group but these names need to rest a bit. The market needs to sort out the winners from the pretenders in these groups and we will see from the technical action which ones will likely prevail.
A new name I'm traded in the past is Retractable Technologies (RVP) . The company makes safety needle devices, which should be in high demand as the vaccine shots start to be administered. The company saw revenues grow 133% last quarter and should see another surge in the months ahead.
The indices are up and sitting there but there is good trading action under the surface once again.