After lagging on Tuesday, the Nasdaq 100 ( (QQQ) ETF) is leading the indices again Wednesday. There has been a recent "every other day" pattern for large-cap technology and FAANG stocks, which is causing some of the bears to believe that topping action is taken place. So far there is no confirmation of that belief, but the inconsistency does indicate that bullish conviction is starting to wane.
Under the surface, breadth has moved closer to flat with around 3,700 gainers to 3,300 decliners. New 12-month highs have dropped to around 250 and the number of stocks up more than 10% has slowed quite a bit. The speculative action has cooled although there are still some big movers for aggressive day traders.
Precious metals continue to fly higher. Names such as Pan American Silver (PAAS) and First Majestic Silver (AG) are acting like they are in a bubble. I've cut some of my exposure to the miners as they are on a rampage right now.
I'm seeing a mixed bag of trading. I added a position in gambling-related play, Everi Holdings (EVRI) . One of my favorite small biotech plays, Ocular Therapeutix (OCUL) , has a target increase and I'm adding a few shares there.
Some of the China names are under pressure due to the political problems with the U.S. I'm going to use that weakness to look for entries into a few names such as UP Fintech Holding (TIGR) and Huya (HUYA) (see Tim Collins analysis here). I see no rush to pick up new inventory right now.
I suspect that there are too many market timers anticipating corrective action and that they will be annoyed when the aggressive traders continue to focus on stock-picking. When the pockets of trading dry up I'll be more concerned about this market but I don't see that happening right away.
