The action started a little slower today and the pockets of speculative buying are not quite as aggressive but it is another buoyant day for the indices as market players forget about the news flow and worry about trying to participate in this market that won't stop.
Breadth is running quite strong with about around 5100 gainers to 2050 decliners. New 12-month highs are expanding and are now around 135 compared to only 14 new 12-month lows.
The 'go to' coronavirus plays continue to perform very well. Chewy (CHWY) , Slack (WORK) , Datadog (DDOG) and a few others have been moving but I've reduced my WORK position into its upcoming earnings on June 4 after the market close.
Gambling stocks are taking a rest and the SPAC names are consolidating, but there are plenty of single-digit stocks on the radar. This strong speculative action in small stocks is the most significant feature of the market right now.
Back on May 13, I wrote about starting a trade in Bitcoin using Grayscale Bitcoin Trust (GBTC) . I've added to the position and am looking to add to it further as it breaks over recent highs around $12.20-$12.40. This trade has the potential to gain strong momentum as it is mainly a technical trade. Bitcoin has no fundamentals and can't be valued like a stock so it tends to move on emotions and technical patterns more than regular stocks.
I'm seeing some intraday fades in some stocks and that is making me tighten up. I reduce some silver and good positions and am going to err on the side of defense right now.
As always I'm focused on reacting to the price action rather than trying to predict it. As the character of the action shifts, I will also shift and right now it is looking slightly toppy.