We have some 'gap and sit' action to start the day as the big open triggers some mild profit-taking but leaves bears and under-invested bulls worried about insufficient long exposure.
Breadth is very strong with around 5900 gainers to 1275 decliners but momentum is a bit muted. There are only about 150 stocks at new 12-month highs and the list of stocks up more than 10% is a bit shorter than yesterday. There is a mish-mash of speculative names that are running but the recent themes of EVs and SPACs have given way to some less specific groups.
I've been stressing lately that this is a market for stock picking over market timing and that continues to be the case. The big moves are in small caps that are attracting small traders that have been feasting on some big moves lately.
A good example this morning is China Finance Online Co. (JRJC) which announced a deal with Dow Jones to offer its stock coverage in China. The stock was up three-fold in early trading and is now bouncing around as traders wonder if there is another push to come.
One of my favorite sectors for months now has been biotechnology and I'm looking at some names that are bouncing this morning such as Soliton (SOLY) , Ocular Therapeutix (OCUL) and Protagonist Therapeutics (PTGX) .
The S&P 500 is hitting a new intraday high as I write and you can practically smell the FOMO (fear of missing out) in the air. The bear arguments just aren't working and even if you are convinced that disaster lies ahead what choice is there but to try to make some money while you can?
