The definition of a bear market is subject to much debate but when 85% of stocks are trading under their 200-day simple moving average there is a good argument to be made that it is not a bull market.
What is fascinating about the current market is the tremendous difference there is between the Nasdaq, which is positive for the year versus the broader indices like the S&P 500, which is down a little over 10%, and the Russell 2000 ETF (IWM) which is down around 23%.
In the typical bull market, trades are focused on chasing high-beta, momentum-driven growth stocks. In a bear market the focus is primarily on 'value' plays that are created due to the strong selling.
This market trades like a typical bull market as market players chase the high growth names that would typically lag during a major financial crisis but have little interest in the value names that are still acting quite poorly on a technical basis.
The main explanation for this disparity is that this isn't just a bear market but it is a transitional phase in the economy. The market is sorting out the winners of the new world. In some respects, it is not unlike what happened in 2000 as the internet boom produced a major shift in the way the economy operated.
This transition action is creating a substantial fear of missing out. There are more market players embracing the idea that this is more about rotation than anything else and that is what is driving the action.
I've been building a position in a small stock called Esports Entertainment (GMBL) . This is basically a 'blank check' company that recently raised money and is now making its first major acquisition of a Swiss-based online sportsbook and casino operator. This is highly speculative but in the right niche.