The last day of the quarter is often marked by 'positioning' action as big funds start to look ahead to the next quarter. Typically, there is some 'window dressing' action as funds paint a picture of their holdings for their investors. There is also some allocation moves but that isn't as simplistic as many market players seem to think. A multi-billion fund doesn't just wait until the last 10 minutes of trading to make their moves.
There is quite a bit of random action in small caps today. I see names that were impacted by the Russell Index rebalancing on Friday jumping around rather erratically. Two examples on my screen are Inseego (INSG) and Myovant Sciences (MYOV) . There isn't any change in the fundamentals to move them but the small cap positioning causes plenty of cross currents.
One of the best groups off the March lows has been the biotechnology names but they are extended and we are starting to see more pullback there. This is a sector that I want to fish as stocks pullback but it is still quite early. One name I did add to today is Trillium Therapeutics (TRIL) .
Another sector on my radar is precious metals. Silver (SLV) is trying to come out of a base and break a very slight downtrend. My favorites in this group is Pan American Silver (PAAS) and Kinross Gold (KGC) but I also started a new position today in B2Gold (BTG) . Precious metals miners can be tricky to trade but the technical conditions look quite good.
I am not spending too much time looking at overall market direction right. The trend is up and that is all that matters in the short term.
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We will anticipate, that's how the market works. No matter how we spin it those are anticipatory moves.
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