Still Navigating These Scary Stock Market Rotations – TheStreet.com

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A big reversal in technology and FAANG names is the highlight of the day. Amazon.com, Inc (AMZN) , Alphabet Inc (GOOGL) , Nvidia Corp  (NVDA) and other names that have been punished for the past four days are bouncing back. They hesitated at first, but the group is now holding on to early gains.

Breadth is running negative, with just 2700 gainers to 3700 decliners. Small-caps are the laggard while the bigger-cap names and financials are helping the S&P 500.

As I discussed in my opening post, this market is all about navigating the rotations right now. If you are focused on calling a turn in the senior indices, there isn’t much happening. The big trade today was the bounce in the Nasdaq 100 ETF (QQQ) .

As usual, I’m focused on individual stock picking, but the number of stocks making moves of 5% or more is down substantially and there isn’t much of a theme — other than the technology bounce. Very few of those technology stocks are making moves of more than 5%, so far.

I made one new buy of a China small-cap name, Hexindai, Inc  (HX) , a recent IPO that has been tarnished by the micro-lender group. This company makes primarily business loans that average more than $10,000 and have single-digit interest rates. The numbers are stellar, with 300% revenue growth. I’ll post a more-detailed look at the stock when I have a chance.

I’m struggling with extremely slow internet access today, but I do not see a lot of new opportunities right now. The rotation back into technology is the theme — but it may not be a lasting one.