One of the primary questions that many market players have been asking recently is whether small-caps, growth stocks, and speculative names can continue to perform if the indices struggle. The concern is that the indices will drag down everything when they finally correct.
We have some mild corrective action in the indices Tuesday morning, but so far, breadth is staying close to even, and there continues to be good stock-picking. The sort of action that worries me is correlated selling when the merits of individual stocks don't matter. We do not have that happening so far today. Stock-pickers are still active even though the indices are hitting intraday lows.
Some of the best-looking stocks on my screens right now are Upstart Holdings (UPST) , ZIM Integrated Shipping Services (ZIM) , Beyond Air (XAIR) , TaskUs (TASK) , Aurinia Pharmaceuticals (AUPH) , VPC Impact Acquisition Holdings (VIH) , Apollo Endosurgery (APEN) , and Aehr Test Systems (AEHR) . My Stock of the Week is urban-gro (UGRO) , and it is holding up well.
We have to keep an eye on the indices, but we need the gap between big-caps that are at highs and many of the secondary stocks that have been in bear markets to close. It looks like that process is starting today.
One speculative name I'm watching is Reservoir Media (RSVR) . There have been some efforts recently to move small-float deSPACs, and RSVR looks like a probable candidate.