We have mixed action in the indexes so far Wednesday, with breadth running about 3,400 gainers to 4,450 decliners. New 12-month lows are limited to about 170, and I'll be watching that closely.
If new lows stay suppressed, it is an indication that there is aggressive bottom-fishing taking place. On Tuesday, bottom-fishing was the star of the show as growth and biotechs made very strong moves.
Biotechnology is seeing some follow-through Wednesday, but growth is mixed so far. Breadth within the ARK Innovation ETF (ARKK) is running slightly negative, with biotechs Ginkgo Bioworks (DNA) and CRISPR Therapeutics (CRSP) leading.
I do not know if this action is significant and maybe some sort of turning point, but I do know that it is much better for trading. I see more stock-picking in secondary names, and it is nice not to see everything being driven from the top down by the indexes. I'm not loading up for the longer term, but I'm eyeing more short-term trades.
One lower-priced stock that I'm trading today is EOS Energy Enterprises (EOSE) . This is a de-SPAC that was hit very hard. It develops a zinc battery system that has certain advantages over traditional lithium-ion batteries. The company announced some contract news Wednesday and is seeing a surge in volume.
Another stock that I have discussed in the past is Veru (VERU) , which published some results in the New England Journal of Medicine Wednesday and is seeing a spike in good data. I am looking for additional entry points as it develops.
I also continue to like Ondas Holding (ONDS) . This company is a leader in the emerging field of industrial drones, and they have an agreement to merge with an Israeli-based company in that field. This is one name that I think will be a leader in a major theme in the years ahead, in my view.
Those are just a couple of examples of some of the stock-picking action that has been improving lately. The less correlated the action is with the indexes, the more opportunities there are for traders that focus on stock-picking.
(Please note that due to factors including low market capitalization and/or insufficient public float, we consider EOSE 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.)
