We have mixed trading action to start the week. Many stocks bounced strongly at the open, but that triggered some quick flipping into the strength.
There was a little chasing of the positive momentum, but stocks are now looking for some support, although the gap underneath is a magnet.
President Biden will be speaking later this morning about the Omicron variant, but there just isn't enough information out there right now to produce strong moves in either direction. Traders are just pushing things around and trying to position for the next move.
While breadth is 2 to 1 positive, pockets of strong momentum are very narrow, with only about 15 names up more than 10%. The problem is that the gap-up open created an air pocket that many technical traders will be looking to be filled.
I've been a seller so far this morning as I reduced a few things into strength. I'd like to do some buying but will stay patient and see how well this strength holds. If we end up this afternoon near the highs, I'll likely deploy more cash.
One name I did add to is Enthusiast Gaming Holdings (EGLX) , which focuses on social media for gamers. My Stock of the Week is a biotechnology name that focuses on immunotherapies for Covid and variants, SAB Biotherapeutics (SABS) .