The Market Is Dealing With Thinner Trading and Rotational Action

And that's going to stick around for a while longer.
Stocks quotes in this article: ARKK, TASK, UPST, COIN, EGLX, MOGO, ZEV, BFLY, FSR

Higher bond yields are helping banks and financials this morning, but it is sucking some money out of the Nasdaq 100 and FATMAAN names. The DJIA is leading with breadth of 28 to 2 versus overall market breadth of 4150 to 3450. ARK Innovation (ARKK) breadth is running around 28 to 53. Retailers, value, and banks are trouncing technology and growth.

There are some very good earnings reports that are helping out in the small-cap sector, but there isn't much chasing or sustained momentum. Very few stocks are trading at day highs, and the number of 10% movers has dropped substantially.

Part of this action is due to slower summer trader, which will continue until Labor Day, and part of it is this endless rotational action that prevents good momentum from building. I see many names I like drifting lower, but I am in no big hurry to build my positions.

Some of the good earnings reports on my screens today include TaskUs  (TASK) , Upstart  (UPST) , Coinbase  (COIN) , Enthusiast Gaming (EGLX) , and Mogo  (MOGO) . I want to add to all these positions as well as Lightning eMotors (ZEV) , Butterfly Network   (BFLY) , and Fisker  (FSR) , but I'm not going to do much today unless they drop very sharply.

The main problem is the market is dealing with thinner trading and rotational action, and that is going to stick around for a while longer.

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At the time of publication, James "Rev Shark" DePorre was Long TASK, UPST, COIN, EGLX, MOGO, ZEV, BFLY, FSR.

TAGS: Investing | Markets | Stocks | Trading

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