The action is a little slow and choppy this morning but breadth is already 2 to 1 positive and there are over 250 new highs. The pockets of strong momentum are limited with only about 10 stocks trading up more than 10%, but traders are hunting for opportunities and creating some movement out there.
The standout sector so far is oil but crypto-related names are active and the FATMAAN names are holding up well. It is a market for stock picking but the strength is narrow. I'm seeing more interest in high-beta growth like DermTech (DMTK) , AppLovin (APP) , and Upstart Holdings (UPST) , etc.
I'm watching the list of names that are being added to the Russell indices and doing some quicker trades in some of the thinner plays like FTC Solar (FTCI) and Finance of America (FOA) . I don't know if there will be more index buying into the close on Friday but the fundamentals are solid so it isn't high risk.
I expect the trading action to remain choppy but there should be some dip buying interest on pullbacks. I'm managing positions tightly but will be an aggressive buyer if I can find good setups.