The good news on Tuesday morning is that the Nasdaq 100 (QQQ) is trading about flat while the Russell 2000 (IWM) is leading with a gain of over 2%. When this sort of rotation takes place, it creates a lot of strong breadth because there are quite a few stocks that are making positive moves. Breadth is currently running about 5,500 gainers to 2,450 decliners.
The gap between the big-cap technology names and the rest of the market has to eventually close to some extent, and this is the best way for that to happen. The QQQ and big-cap tech names can hold steady while money flows into the smaller stocks that are not extended and tend to have better technical setups.
Some folks have called this a "stock pickers'" market since there was a narrow group of stocks that were performing. However, this action had more to do with flows into a big-cap theme rather than careful stock selection.
Stock picking is more about finding charts, good fundamentals, and potential catalysts, and we are seeing some good examples of that Tuesday.
Here are some names that I have been trading Tuesday morning:
Beyond Air (XAIR) -- I've been following this one for quite a while and have built a position after very heavy insider buying. The company is reporting earnings and news in a little more than two weeks and appears to have technical support.
Xeris Biopharma Holdings (XERS) -- This is another name I have followed for a long time. The stock finally turned the corner in late March and is chugging along nicely with steady sales of Gvoke and several other developments. A high-level base is forming.
Magnachip Semiconductor Corp. (MX) -- Magnachip is a Korean chip company that is splitting into two parts. It has been sitting on substantial cash and is now trying to unlock its value with the split-up.
Ocular Therapeutix (OCUL) -- I discussed this stock last week. It has data coming this weekend, and there is the hope of some sort of partnership deal to speed up development.
Arteris (AIP) -- This stock is showing a nice-looking cup-with-handle pattern with an attractive volume pattern.
Roivant Sciences (ROIV) -- This stock is moving out of a base and challenging January highs.
Zura Bio (ZURA) -- The company announced a private placement and has had recent insider buying. It's also a Russell Index addition.
I'm leaving plenty of room for further additions to these names and will be ready to take some gains into spikes.
(Please note that due to factors including low market capitalization and/or insufficient public float, we consider many of these names to be a small-cap stocks. 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.)
