Some of the most overheated stocks and sectors are being hit with a bout of profit-taking today. Bids disappeared, and there were some sharp drops a few minutes after the open, but some tentative dip buyers have shown up, and things are stable.
Breadth isn't terrible at 3-5 negative, but some of the higher momentum names are being hit. Tesla (TSLA) is struggling as traders wonder if Musk is selling, and recent leaders like cannabis and cryptocurrency have dipped.
I see this action as just a way for the market beast to punish those that have become overconfident recently. The market is sometimes called the Great Humiliator because it will do its best to punish those that take it for granted. This sort of selling is just a not so gentle reminder that the Beast can turn on us at any time.
I had a few stops hit, but I've also done a little buying as well. One of my favorite dips buys continues to be Ondas Holdings (ONDS) which should not only benefit from railroad infrastructure spending in the Biden bill but is on the cutting edge of drones for industrial use. I think that story will be discovered sooner or later, but in the meanwhile, I'll buy it and trade it on weakness.
I also added to Aehr Test Systems (AEHR) , which has been a huge winner this year but has dipped several times on insider selling. You can't blame insiders for cashing out a few shares along the way. The story here is test equipment for EV semiconductor systems, and it is apparently booming.
A third name I bought this morning is X4 Pharmaceuticals (XFOR) which is a small biotechnology name. It has seven presentations coming up at the American Society of Hematology meeting in December. I am looking for the market to start anticipating some good news.
AGC, which is the Asian version of Uber (UBER) and is still waiting to close its SPAC merger, is ripping higher. It is on my radar as well.