After a strong five-day run, there is some consolidation taking place, although the S&P 500 is trading in positive territory once again. Part of the consolidation is a rotation out of high growth and FATMAAN names that outperformed for a few days, and part of the consolidation is the weaker breadth of about 4200 gainers to 3450 decliners. New 12-month highs have slipped to around 215 as there is narrower strength.
The hottest action in the market is anything crypto-related. Miners like Marathon Digital (MARA) , Hut 8 Mining (HUT) , and Cipher Mining (CIFR) are running hot. As are other plays like Grayscale Ethereum Trust (ETHE) , Coinbase (COIN) , and Marqeta (MQ) .
I suspect that there is some mispositioning in the crypto names because quite a few folks were looking for a 'sell the news' reaction when the new Proshares Bitcoin ETF (BITO) started to trade.
I'm trying to put more cash to work as I still am quite underinvested. One new name I added today was IronSource (IS) which is an Israeli-based company that allows app developers to monetarize their apps through mobile app advertising. It has a partnership with Samsung in Germany and saw revenues jump 73% last quarter. It trades thinly and is very underfollowed.
That is the sort of situation I'm looking to build as we head into earnings season.