Strong momentum continued at the open this morning on the outstanding breadth of 5600 gainers to 1700 decliners. There are already over 1200 stocks hitting new 12-month highs due to continued strength in the Russell 2000 ETF (IWM) .
However, the early strength is being used for some profit-taking, and there isn't too much trading at intraday highs. It makes sense for some traders to flip into the big gap up opens.
Cannabis stocks remain the momentum favorites, with names like Tilray (TLRY) , Village Farms (VFF) , Green Thumb (GTBIF) , Trulieve (TCNNF) , and Sundial (SNDL) all trading very strongly. I've reduced a little into the strength, but I am doing my best to stay with the momentum.
Bitcoin is seeing some profit-taking, which isn't surprising after the recent run. So far, this looks like some healthy consolidation. I'm inclined to add to some of these plays as they develop from here. Marathon Patent (MARA) , Canaan (CAN) , and Grayscale Bitcoin (GBTC) are on the radar.
Gamida Cell (GMDA) , one of my top small-cap plays for 2021, is up nicely on excellent news about their lead cancer treatment. I believe this will set this stock up as a potential takeover play at some point, but I never hold a stock solely on that basis.
The early pullback is already finding support before the indices can even go red. The interest in stock picking keeps the mood very positive, and I don't see that shifting too quickly.