We have a continuation of Wednesday's holiday trading today with some very strong pockets of strength in individual stocks. Breadth is around 4-3 positive and Nasdaq is leading but once again the explosive action is under the surface in individual stocks in sectors like SPACs, biotechnology, cannabis, and other odds and ends.
Historically the strength on Wednesday and Friday around the Thanksgiving holiday reverses to some degree next week. That is the case with indices but this is a little different and is sector driven. I suspect that the interest in SPACs is going to continues for a while even though some of the very extended ones are likely to see some profit taking soon.
I've been a net seller today primarily due to trading discipline rather than market timing. We've had some outsized gains in a number of places so I'm making partial sales of names like Ocular (OCUL) , Trillium Therapeutics (TRIL) , EOS Energy (EOSE) , Nano Dimension (NNDM) , Landcadia (LCA) , Myovant (MYOV) , GameStop (GME) , etc. There are still plenty of strong charts and if this momentum continues they are going higher but I'll be happy to look for new entries next week.
Next week we are likely to see some shift in the focus of the market as we move back to macro and big picture issues. I'm hopeful we will continue to see a focus on stock picking like we've enjoyed this week but we need to be ready for some resets after some very frothy gains.
I'm heading out. Enjoy the weekend. I'll see you on Monday.