The market is experiencing some of the worst action in months. The primary headline is that fears of a surge in the Delta variant of COVID are driving the action, but much of the action has to do with the disconnect recently between the indices and the vast majority of individual stocks.
Breadth is running around 7 to 1 negative. There are 230 new 12-month lows and just a handful of stocks that are up 10% or more.
There was almost no bounce try out of the gate - which is unusual - and reflects the very poor sentiment and concerns that the indices could correct much deeper.
The good news is that much of the market - especially small-caps and growth names - is already deep into corrections, and they are showing slight relative strength. For example, the iShares Nasdaq Biotech Index Fund ETF (IBB) is only down 0.16% compared to the Nasdaq 100, which is being hit for a loss of 1.4%.
There is some rotational action out there, but it is manifesting itself by smaller drops in some names that have already corrected quite a bit.
I'm doing a little fishing this morning, but I am taking my time. I have added to my Stock for the Week, Performant Financial Corp (PFMT) , and also Aurinia Pharmaceuticals (AUPH) , and Elys Game Technology (ELYS) .
The indices and broader markets need much more work to hit a good low, but other stocks are already well underway in the process, and therein lies the best immediate opportunities.