Small-caps (IWM) are leading this morning with a gain of around 0.7%. That is helping to drive positive breadth which is running around 4400 gainers to 2600 decliners but there is mixed action in big caps and very limited pockets of momentum.
New 12-month highs are down to around 50 and my list of 10% movers is only about a dozen names. It is not bad action but it is not very lively. My impression is that many market players are pulling back and will stay on hold as the election approaches. They are still focused on stock picking but don't want to be aggressive or have large exposure until we see greater election clarity.
I continue to monitor many stocks that I think are fundamentally solid and that I want to buy but I don't see any reason to jump in with market conditions in flux.
There is no reason to be overly bearish but there is good reason to look for stocks to tread water as conditions develop.
My primary focus right now is to make sure stops are in place and that I don't let anything slip very much. I'd like to add to a few names like Big Five Sporting Goods (BGFV) , Pacific Ethanol (PEIX) , and Personalis (PSNL) but don't see any reason to do so right now.
Several SPACs are in freefall and will be interesting opportunities sooner or later but the downside momentum is not easing. I'm watching Tattooed Chef (TTCF) , Velodyne Lidar (VLDR) , and Landcadia (LCA) but there is no reason to put any substantial capital at risk there right now.