Short-term traders are trying hard to catch a snapback bounce, but they are unable to generate any sustained buying momentum Monday morning.
There was one weak bounce try that has fizzled, and now traders are waiting to see if intraday lows will hold. Breadth is running around even, but the number of new 12-month lows is piling up fast and is already over 900 names.
Bonds look very poor again, with iShares 20+ Year Treasury Bond ETF (TLT) and iShares 7-10 Year Treasury Bond ETF (IEF) hitting new multi-year lows. Also, precious metals are breaking down, and oil and other commodities are struggling as well.
This action is what we'd expect to see as worries grow about stagflation.
My game plan remains the same. I have little interest in trying to catch stocks that are falling and have not found support. I want to buy charts where there is a low and then some upside action.
There are many names I like that have brutal charts, but it is irrelevant at this point that they may be great values. Price action is far more important than valuation right now.
A few small names on my radar are Ammo, Inc. (POWW) , Redwire (RDW) , urban-gro (UGRO) , Ondas Holdings (ONDS) , and Alto Ingredients (ALTO) , but I see no reason to rush to buy them right now.
One positive that I see is that many of the stocks that have been struggling for so long are holding up a little better than the indexes and the big-caps. For a very long time, I pointed out how here how the indexes were covering up very bad underlying action. That is no longer the case, but the process is going to take some time to play out.
(Please note that due to factors including low market capitalization and/or insufficient public float, we consider UGRO to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.)