The market likes the news that Jerome Powell has been picked by President Biden for another term, but there continues to be extremely chaotic action under the surface.
While the S&P 500 and Nasdaq are hitting new all-time highs once again, there is some extreme selling again in secondary and speculative stocks. The ARK Innovation ETF (ARKK) , which is largely growth stocks, is down for the third straight day and is losing another 1%. Many small-caps are without bids.
What is most challenging about this action is that it has no correlation to the merits of individual stocks. It is just massive flows in and out of various sectors and themes. If your stock isn't in the right group, then it is being pounded regardless of its fundamentals.
Essentially this is a rotational correction, but we have seen this for much of the year, and many traders are growing weary of the two-tiered nature of this market.
Many of my favorite names are acting very poorly. I'm staying patient and waiting for some shifting in action, but so far, there are no signs that it is about to end.
What makes this action so much worse is that it is being totally ignored by the business media. All they see are a few indexes driven by big-cap names, and that is the market.