Monday morning strength has been a consistent pattern in the market in recent months and it is continuing this morning. Breadth is running 4 gainers for every 3 decliners and new 12-month highs have expanded to over 460. The FATMAAN names have regained their luster and are leading the Nasdaq 100 ETF (QQQ) to a gain of 1.6%.
Some traders are sounding a little nervous about protecting some very strong recent gains that is causing some rotation out of individual small-caps that are extended and into more liquid bit cap names that have been lagging lately.
Some of my biggest recent winners such as Personalis (PSNL) , Big Five Sporting Goods (BGFV) , and Nautilus (NLS) are resting, but others like Dada Nexus (DADA) , Zoom Video (ZM) , and Walmart (WMT) are looking good.
A couple of names that are making breakout moves are Vuzix (VUZI) which is my Stock of the Week, and Trillium (TRIL) which is looking for a new closing high.
This market continues to ignore big picture worries and is primarily focused on trying to put more cash to work. The price action is very strong but navigating the rotational action can be tricky.
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Along with its total subscriber adds, keep an eye on Netflix's regional growth rates, as well as its free cash flow guidance and content spending outlook.
Let's check in again on BAC after its latest earnings.
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