There was a slight bounce in small-caps and some other lagging groups to start the day Wednesday, but it fizzled out quickly as buyers just aren’t very interested in bottom fishing right now.
Amazon (AMZN) , Apple (AAPL) , and a few other big-cap technology names are driving the Nasdaq higher, but breadth is slipping, and they’re just isn’t any sustained buying interest. There are only about 15 stocks on my scan that are trading up to more than 10%.
The market has two problems right now.
First. there is very narrow strength in some big-caps that is causing the indices to look much better than the majority of stocks.
Second, there just isn’t any great interest in stock-picking beyond that narrow leadership.
The problem isn’t aggressive selling. The problem is a lack of buying interest, and that eventually leads to more selling.
Breadth is slipping as I write, and I continue to stand aside and wait for names I like to pull back further. I don’t see any reason to be buying dips in smaller stocks right now.
One group acting better today is the MSO (multi-state operator) pot names. Jeffries initiated coverage in seven of the stocks and called it a “generational opportunity.” My favorites in the group are Curaleaf Holdings (CURLF) and Cresco Labs (CRLBF) , but they’re just isn’t any reason to add right now.
Stocks continue to drift lower as I write, and breadth is slipping fast. There isn’t much to do here but wait it out.