We have choppy action as stock pickers are doing battle with the sellers that keep fading strength. Breadth is positive at around 4600 gainers to 3300 decliners. Probably the most positive thing this market has going for it is the number of folks that are looking for deeper corrective action.
The bearish narrative has been gaining some traction and virtually everyone is aware of the fact that September is on average the weakest month of the year. The combination of extended technical conditions, with some slowing in the economy and negative seasonality makes the bearish call pretty easy.
The problem for the bears is that when the downside seems this easy it doesn’t tend to work as well. Many folks have already made defensive moves and they now have cash and are looking for potential entry points if stocks sink further. I believe that there is still too much retail interest to produce the sort of meltdown that many bearish pundits think is inevitable.
Key names on my shopping list on weakness in order of my current exposure is as follows: Butterfly Network (BFLY) , Elys Game Technology (ELYS) , Aurinia Pharmaceuticals (AUPH) , Performant Financial (PFMT) , urban-gro (UGRO) , Xeris Pharmaceuticals (XERS) , AMMO (POWW) , Beyond Air (XAIR) , Acacia Research (ACTG) , ZIM Integrated Shipping (ZIM) , ProQR Therapeutics (PRQR) , Verano Holdings (VRNOF) , Senseonics Holdings (SENS) , and Ocular Therapeutix (OCUL) . My positions change very fast and I’m actively trading all these names.
I have some newer positions that I am building as well and will be discussing them as they develop.
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