We have a very interesting mix of action in the early going as some of the rotation action reverses itself again and the market timing bears keep looking for indications that the highly-anticipated market top is starting to form.
Yesterday the Nasdaq 100, FAANG stocks, and big-cap technology names took the lead again after a rest of about a week. Some market players were thinking that a rotation out of 'growth' and into 'value' was starting but that idea didn't look very good yesterday. The rotation back into 'value' is back on to some degree but it is not very smooth.
In addition to the rotational action, there is also a big move higher in precious metals stocks, strength in small caps, and continued speculative trading. There are quite a few moving parts to this market and it is a mistake to declare the action as either bullish or bearish. It really depends on what your focus happens to be.
I used the early strength in precious metals to reduce positions in (PAAS) , (AG) , (GOLD) , (BTG) , (KGC) , (GORO) , and (SSRM) . I'm still holding positions but will try to find some remounts as some consolidation or pullbacks occur.
One example of low-priced speculative names I'm trading is Arlo Technologies (ARLO) which is moving over its 200-day sma on good volume. It is the sort of stock that attracts interest from retail traders and can make a sizable move if the sentiment is right.
I also remounted a position in Florida-based cannabis stock, Trulieve Cannabis (TCNNF) . I believe this sector is going to continue to offer some interesting opportunities as we move into the election in November.
Overall I'm a net seller so far today but I'm still hunting for new buys.