The biggest positive right now? There is a certain selection of stocks going

This morning’s employment news was surprisingly stronger than expected. This has raised expectations for Fed rate hikes and moved bonds, but equities are mixed with some pockets of pretty good action, although the magnitude is around 2-3 negative.

New lows have widened again and are around 500 names, but still not close to what we hit last week. This is good news from a technical perspective, as it illustrates some relative strength in the hardest hit stocks.

Charts for all major indices look poor. There is simply no good support until the lows that were reached a week ago. The fast and furious three day rally didn’t create very good setups, but if the recent lows hold, things will get better.

The biggest positive right now is that there is a selection of titles going on. The cannabis industry is heating up as Congress debates the SAFE bank issue more vigorously. I added to my position in AdvisorShares Pure US Cannabis ETF (MSOS) which I mentioned yesterday.

I also added positions in IonQ (IONQ) and NIO (NIO). Both stocks have undergone deep corrections, but are showing better relative strength, and that’s what I want to see.

Many of the smaller stocks I favor are seeing positive chart development, but there are still two big hurdles. The first is the poor technical form of the indices, and the second is that the selling algorithms have been particularly vicious lately and can strike at any moment.

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