The indices continue to chug along to the upside on good breadth of 5300 gainers to 2500 decliners and over 625 new 12-month highs. Pockets of speculative trading remain strong as traders continue to hunt for short squeeze and low-priced plays.
I'm focused mainly on some shorter-term plays right now. A few names I've bought this morning include Meta Materials (MMAT) , Sphere 3D (ANY) , Hut 8 Mining (HUT) , and Performant Financial (PFMT) . Some of these are just quick trades, and some are ones I like in the longer term but will also trade short term.
This continues to be a very good environment for stock pickers. We went through a miserable period after things became extremely frothy in late February. Many traders became quite discouraged in the subsequent months, but they have regained confidence since the Snake Bite Bottom and are willing to be more aggressive now. That is self-reinforcing to some extent and is the way the character of the action has changed so much.
At this point, my primary job is to keep hunting for new opportunities in individual stocks. I don't have any interest in the indices or macro matters right now since they are not having any influence on the trading.
One of the easiest mistakes to make in a market like this is to keep anticipating that conditions will change. It is important to trade what is in front of you rather than worry about what will happen tomorrow.
