Early market action is mostly positive, with the Russell 2000 ETF (IWM) leading. Breadth is improved over yesterday with around 4600 gainers to 2750 decliners, but new 12-month highs have declined to about 730 as there is some aggressive rotational action between sectors
The cannabis names that were red hot yesterday were gapping up this morning and suddenly turned to the downside. Tilray (TLRY) dropped around 20 points in the blink of an eye and has a hard time bouncing. Other names in the sector are down in sympathy.
Much of the sector has been driven by social media pumping of some of the low-quality Canadian names, so this action may turn out to be an excellent way to create some good entry points in the higher-quality names like Village Farms (VFF) , Curaleaf (CURLF) , Trulieve (TCNNF) , Green Thumb (GTBIF) , AdvisorShares Pure US Cannabis ETF (MSOS) , Cresco (CRLBF) , GrowGeneration (GRWG) , Agrify (AGFY) , etc. I will be looking for entry points in those names soon.
Much of the cannabis money is rotating back into bitcoin plays. Grayscale Bitcoin Trust (GBTC) , Marathon Patent Group (MARA) , Riot (RIOT) , Canaan (CAN) , etc., are moving. I've been adding to Greenpro Capital (GRNQ) , which invests in the crypto area, and announced a deal this morning.
I also added to a position in gun and ammunition play AMMO (POWW) and small drone play, Dragenfly (DFLYF) . One name that is being pushed on social media this morning that is on my radar is Infinity Pharmaceuticals (INFI) .
This continues to be a market dominated by small-cap stock picking. That is the game that is paying the bills right now, and I'm playing it the best I can