The upside reversal in Microsoft (MSFT) , to a 5% increase from a 5% decline, combined with hopes of some dovish love from Fed Chair Jerome Powell Wednesday afternoon is producing strong early action.
Breadth is very good at around 6,500 gainers to 1,300 decliners. There are only 57 new 12-month lows after more than 2,000 on Monday. The early fade into the opening strength was bought, and the indexes are now at day highs.
The big question now is whether we will see a "sell the news" reaction to the Fed if we run up further into the news.
I've made a few sales into strength, but I'm a buyer on good setups. It definitely is starting to feel like some of the worst groups like small-caps, biotech, and growth stocks are starting to bottom. We had pretty good panic the last couple of days, and that likely washed out some weak hands.
One of my favorites, Ondas Holdings (ONDS) , had news that it is supplying Chevron (CVX) with drones for monitoring oil fields. This stock has been in a steady downtrend since the Russell 2000 topped in November, and it should now have good support at $4 to allow me to build up the position.
There is still much work to do, and the Fed news is going to cause some volatility, but I like what I see.
(Please note that due to factors including low market capitalization and/or insufficient public float, we consider ONDS and ELYS 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.)