Speculative trading has cooled off Tuesday morning as the market indices trade down to flat, and breadth is running just slightly positive.
There have been some frothy pockets of momentum action in "junk" names over the last few days, but the list of stocks up more than 10% is much shorter this morning. A few of those names that are on my list are LendingClub (LC) , Spok Holdings (SPOK) , Lightning eMotors (ZEV) , and Aehr Test Systems (AEHR) .
The number of stocks at the highs of the day is building as I write, so I suspect that speculative traders are slowly regaining a little confidence after a mixed open. We'll see if they keep pushing, but I suspect that we are in for a little rest.
One name I've been adding to this morning is Acacia Research Group (ACTG) . This is a deep-value play that has an interest in what should be a hot IPO that will be announced soon. ACTG also has quite a bit of cash and made an offer to buy SPOK for $10.75 per share. It isn't clear whether the deal will be made, but this is an indication that ACTG is looking to put its assets to work. Value plays such as ACTG seldom move quickly, but there is solid support, which makes me a buyer on future weaknesses.
I'm doing a little resetting of positions today and haven't added much, but overall this looks like some much-needed consolidation and should help charts to develop.