As we wrap up an interesting week, the action is slow, choppy, and mixed. Breadth is positive with around 4300 gainers to 3360 losers, and there are 435 new 12-month highs, but the S&P 500 is dead flat, and pockets of momentum are narrow. Meme names have not been able to bounce back very much from yesterday's drubbing, and the FATMAAN names aren't doing anything.
The good news is that worries about inflation seem to have been set aside, the indices are in good shape technically, and stock picking has been better this week. It is painfully slow right now, and there isn't much energy, but this sort of action qualifies as consolidation. I see a fair amount of nervousness about the market, but that helps to create our old friend, The Wall of Worry, which we can climb.
I've been making some quicker trades but will be hunting for some position buys later in the day. I suspect we will be dealing with this lack of energy as we head into the summer, so we will have narrower trading action. I've found that flat markets can be very good for trading at times as traders tend to gravitate toward a smaller group of stocks and create better movement. The key to trading that type of action is to identify the action at an early stage and be ready to jump in quickly.
EGLX priced a secondary offering this morning at $5.75. This is a play on Gen Z and gaming, and I expect it to find some support now that this overhang is gone.
AUTL is an early-stage cancer play. The company announced some data at a Hematology meeting in Europe that was very strong. While the news is extremely good, the stock is not gaining much traction. I suspect that this is because there is not another catalyst until near the end of the year. I believe that this stock will be a major winner eventually, but it is going to languish while it waits. It will remain on my radar, and I'll be trading it as opportunities arise.