Every market has a primary theme. It may be big-cap growth stocks, small-cap speculation, correlated selling, a focus on earnings, or any number of other things. Staying in tune with the dominant market theme is the key to navigating the market action.
Currently, the primary theme of the market is waiting for the next catalyst. We have gone through a rotation period, have dealt with bonds and some inflation concerns, and started pricing in a return to a normal economy. Many stocks are now waiting for the next catalyst to trigger some momentum.
Earnings season is coming and will survive as a driving force for many stocks, but I have an unusually long list of names that I'm watching that should have events that will trigger some positive responses.
A good example is a number of stocks that are OTC listed and are waiting for a full Nasdaq listing. All of the U.S. cannabis names (MSOS) fall within that category, and there are others like Draganfly (DFLYF) and Enthusiast Gaming (ENGMF) that are in the process of fully listing right now.
Another group of stocks I'm watching is things like AMMA (POWW) that is waiting to close an acquisition deal. There are also the usual biotechnology names like Xeris Pharmaceuticals (XERS) , Aurinia Pharmaceuticals (AUPH) , ProQR Therapeutics (PRQR) , Surface Oncology (SURF) , etc., that should have some sort of news about their progress.
One group that has some of the best potentials for positive reactions to news is SPACs. I'm holding a few like Soaring Eagle Acquisition (SRNGU), Roth CH Acquisition II (ROCC) , and Good Works Acquisition (GWAC) , which should eventually have very positive catalysts, but there is no way to know when.
There are some unusually promising situations out there right now, but currently, it is just a waiting game, and that can be unexciting. It is quite easy to grow impatient with the names that are languishing as they wait for some future catalyst.
I'm currently heavily invested in these stocks that are drifting around as I'm quite confident that the eventual catalysts will come. If they do, this is going to be a very exciting market in the months ahead.