After an extremely ugly close on Wednesday, there is some bounce action brewing Thursday morning. Buyers are tentative but gaining some confidence the longer that the indexes stay green. Breadth is better than 2 to 1 positive, and new lows are down to around 150 after two days of exceeding 1,000.
Big-cap growth names are leading. Ark Innovation ETF (ARKK) is up 4.6% after hitting a new 12-month low Wednesday, and I have over 30 names on my list of stocks that are up more than 10%.
The main theme appears to be stocking picking in the hardest-hit groups, but you have to wonder how much a bounce can be trusted at this point.
I've done a little buying, but I have my highest level of cash in a long time and am staying patient. I'd rather be late than early. I do think the biotechnology group is near a potential low, so I'm more inclined to add in that sector.
A few names I've added to this morning include Xeris Biopharma Holdings (XERS) , Alto Ingredients (ALTO) , Aurinia Pharamaceuticals (AUPH) , LendingClub LC and Myovant Sciences (MYOV) . I have my eye on other things, but I want to see more sustained strength before I do very much.