The market isn't paying too much attention to the horrendous earnings report from Netflix (NFLX) , but the opening strength was sold, and the action is mixed with technology and growth stocks lagging.
Bonds, specifically the iShares 20+ Year Treasury Bond ETF (TLT) , have finally bounced after downtrending for almost two weeks, however, that doesn't seem to be triggering aggressive buying.
Like on Tuesday, there are very few pockets of strong momentum. I only see a dozen or so stocks up more than 10%. Weakness in precious metals and oil has reversed, but the growth names in ARK Innovation ETF (ARKK) are under heavy pressure again. Every stock in ARKK is currently trading in negative territory.
This is a very tough trading market as there are very few sustained moves. The stocks that are strong one day are weak the next. There isn't any momentum, which is not too big of a surprise in view of the poor technical conditions that exist.
I continue to maintain very high cash levels and am staying highly selective with my buying. I am much more interested in buying strength than I am in buying weakness. I don't care if I buy the bottom. I prefer to buy when I think stocks might move strongly for more than a day or two.
I've added a little to a position in Alto Ingredients (ALTO) , which is a specialty alcohol and ethanol play. It should benefit from new ethanol rules, and it has outstanding EPS numbers. It is projected to earn $0.51 in 2022 and grow that 86% to $0.95 in 2023.
I am staying patient and waiting for better chart development. The one thing that isn't working very well now is forcing trades with longer-term time frames.
