We have better market action this day, but there is still plenty of uncertainty, and the computer algorithms are jerking things around and rotating out of big-cap technology and into some of the lagging secondary names.
Breadth is very strong at around 4 to 1 positive, and the number of new lows is currently around 100, but the Nasdaq 100 (QQQ) is close to flat, and the Russell 2000 is up 2%.
The longer this type of action persists then the more worry there will be about missing out on a potential bottom. It is understandable that there is hesitancy to chase this action as the dip buyers have not been treated kindly recently.
I feel that we have good bottoming action in certain areas of the market, but the unevenness of the correction is still an obstacle that we are trying to deal with.
I am putting more capital to work, but I continue to move incrementally. This morning I added to The Glimpse Group (VRAR) , Blade Air Mobility (BLDE) , IonQ (IONQ) , Hims & Hers Health (HIMS) , and I am looking for more exposure as the day progresses.
It appears that the evidence is building that Omicron is a less severe variant and that's a major positive in the evolution of Covid. We aren't going to hear much optimism from government leaders but the market is signaling some optimism.
(Please note that due to factors including low market capitalization and/or insufficient public float, we consider VRAR to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.)