Trading on the day before Thanksgiving is positive about 70% of the time, but so far, today is very quiet. Economic news is causing some concerns about rising inflation and slowing growth. Also, headlines about the rising number of COVID cases are a concern.
The main issue with this market, however, isn't macroeconomic news or the major headlines. The issue is the rotational action. Can growth stocks and small-caps bounce back from a drubbing, or will weakness in the senior indexes prevent it?
So far, Wednesday morning's breadth is quite poor at around 2,000 gainers to 5,700 decliners, and there are already 300 stocks hitting new 12-month lows. There are only a dozen or so names up 10% or more, but there does seem to be a little better dip-buying interest.
I added to a position in SPAC play dMY Technology Group (DMYQ) this morning and continue to like the action in the cannabis sector. As I mentioned Tuesday, I added to my AdvisorShares Pure US Cannabis ETF (MSOS) position. I'm watching to add to Roblox (RBLX) , and its little cousin Enthusiast Gaming Holdings (EGLX) is acting well.
I really like the potential of Redwire (RDW) after assisting SpaceX in crashing into an asteroid and redirecting its path, but the company is late filing its 10-Q, which has created great uncertainty. Once that issue is resolved, I'll be adding to my position.