Stocks are ignoring the weekend cryptocurrency drama and calmly moving higher Monday morning.
Breadth is approaching 2 to 1 positive, all the FATMAAN names are positive, ARK Innovation ETF (ARKK) is helping to push growth names, and the Russell 2000 ETF (IWM) is up around 0.9%. It is steady buying so far, and there isn't any aggressive rotational action under the surface.
While crypto names seem to have forgotten the weekend action for now, the charts still look precarious and don't have support. I'm watching Grayscale Ethereum Trust (ETHE) for some entries, but it will need to hold recent lows before I'm interested.
My Stock of the Week is Elys Game Technology (ELYS) , a name I've discussed several times here. The gaming sector looks like it has finally found good support after a downtrend that started back in mid-February. There are a number of small-caps looking better, and the stock-picking is finally starting to look up.
Many small-cap stocks were in a bear market recently, but much of it was ignored because it was not reflected in the major indices. Many of these stocks now seem to have bottomed, however, and individual traders are feeling better. That is helping market sentiment and giving the action a more complacent feel.
Concerns about inflation seem to have subsided, and COVID cases are dropping quickly. The reopening of the economy is accelerating, and some of the most overheated areas have cooled. It is looking more like a Goldilocks environment, and that is attracting traders who were beaten up for a few months.