The market continues to see some sharp rotational action with small-caps (IWM) attracting speculative buying while big-cap technology and FATMAAN names lag. This market continues to be all about sectors, themes, and stock picking. Market timing and macro headlines are having little impact.
The very strong speculative action and some pockets of frothiness are scaring more conservative market players that are convinced 'this will end badly,' but small aggressive traders don't want to miss out on a market environment that won't last forever. There are over 500 stocks at new 12-month highs and around 2 to 1 positive breadth. Small-cap indices are at day highs as I write.
This strength is not as easy to trade as many traders might think. The moves are abrupt, and you have to be willing to ride some stocks that look very extended. One of my trades recently has been in RenaSola (SOL) , which was my Stock of the Week on December 21 when it was at $8.20. It moved over $22 this morning and is still acting quite well despite a direct offering.
Other names on my radar this morning are dMy Technology Group (DMYD) - which is my current Stock of the Week, Gogo (GOGO) , DermTech (DMTK) , Electrameccanica Vehicles (SOLO) , and Elys Game Technology (ELYS) . I'm also watching Net Element NETE very closely as they should be close to announcing a final deal with Mullen.
I've done some cutting into strength and keeping stops tight, but the old saying about not fighting momentum is in play.