Breadth is running around 3400 advancers to 4000 decliners, and the DJIA and S&P 500 have minor losses, but the selling pressure on many stocks is brutal. Good earnings news is being sold aggressively, and growth stocks continue to fall on strong selling momentum. The ARK Innovation ETF (ARKK) continues to be pounded with a loss of 3.3% as 40 of the 41 stocks it holds are down. The only one that is up today is Peloton (PTON) which is seeing a small dead cat bounce.
What is most notable about this action is that the selling is done without regard to fundaments or valuation. It is just one giant basket of stocks being sold without regard to individual merits. The good news is that this sort of action always eventually leads to great stock picking, but the bad news is that there is no way to judge when it might end.
Currently, many stocks are caught in vicious downside momentum, and anyone trying to bottom fish is being hit. This is the sort of selling that will eventually lead to some sort of snapback, but where and when are the unknowns.
One of my favorite names, Aurinia Pharmaceuticals (AUPH) had takeover rumors in the Times of London that were reported on Bloomberg. The stock gapped up nicely on the news but totally gave back the gain and is now slightly negative. This is a good illustration of how positive news simply doesn't matter right now. The selling is overwhelming everything else.
The only thing that can be done right now is to stand aside and wait it out.