The market mood has improved this morning after some struggled on Monday. It is likely that a large portion of the weak action was primarily a function of the calendar and repositioning for the new year, but there are many market participants that are worried that we are 'due' for a deeper correction.
The Georgia election seems like a good excuse for more profit taking, but maybe it's too obvious to generate a rush for the exits. The general belief is that if the Democrats prevail and win both seats, it will kill the gridlock that was the basis for the positive market reaction back in November. There are plenty of folks that are questioning that view, and it seems likely that the market may celebrate increased spending if the Democrats are in control.
There is some good dip buying on my screens in the early going. I've been a buyer of names such as RenaSola (SOL) , XL Fleet (XL) , and FuboTV (FUBO) . The SPACs have been sloppy lately but seem to be finding support. I'm building a position in Foley Transimene Acquisition (BFT) , and watch for entry points in other favorites like Forum Merger III (FIII) .
I am adding to a position in cannabis play Village Farms (VFF) . The cannabis group is likely to move on the Georgia election news, and I'm watching it closely. I'm inclined to be a buyer on selloffs.
This continues to be a good market for stock picking, and as we move past the end of the year manipulation, we should have better technical patterns to work with. The bulls are counting the days to disaster, but I'm sticking with long plays since they are still working well.
