Traders quickly grew bored with the corrective action that occurred the last couple of days and are actively focused on picking stocks again. Breadth is running about 4900 gainers to 2800 decliners, but there are only 120 12-month highs, and pockets of strong momentum are narrow, with just a few dozen names up over 10%
What is notable is that traders are not scared away by the softer action we have seen recently and are still very aggressively looking for action. There is still much focus on low-float de-SPACs and other names that social media is trying to manipulate, but it is very choppy and inconsistent action.
I have a very high level of cash right now and am not in any big rush to put it to work. I took some Gevo (GEVO) and Performant Financial (PFMT) this morning and am riding a position in ProQR Therapeutics (PRQR) . The action is fine, but I do not see an opportunity to add to positions very aggressively.
I do not think that the correction action is over, and I am looking for some opportunities to ramp up some of my favorite names as we head into third-quarter earnings.
This action today does show that sentiment is still quite positive among retail buyers. The pundits and big picture gurus may be concerned about the indices and expensive big-caps, but the small investor is still actively looking to buy secondary stocks.