Although the indexes started Thursday with extended technical conditions, they are pushing higher to fresh all-time highs. When the action has been as strong as it has been recently, it creates FOMO (fear of missing out) as well as very aggressive dip-buying. If you have missed this move, the worry tends to be about missing out on more rather than buying too late.
The good news is that there are many stocks that are not nearly as extended as the indexes, and most of them are small-caps that currently have the best technical action.
The dilemma in this market right now is not whether to put more cash to work but to find good entry points. It isn't easy, but I find that the best approach is to make small incremental buys and then look to add as things develop.
A couple of names I've added to today include Ammo, Inc. (POWW) , Ondas Holdings (ONDS) , and Beyond Air (XAIR) , all of which have earnings coming up in the next week or so.
There is a temptation at times to sell some names that you have been holding for a while and that have finally started to show some life. However, it is very easy to sell too early in these situations since it is such a relief to finally see positive action. This is what creates overhead resistance in many cases.
I remain quite optimistic about this market, but we will have to focus more on trade management now rather than just stock picking.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider some of these names to be small-cap stocks. 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.
