I Like the Looks of This Action Into Earnings Season – RealMoney

The market is building on the bounce action from Tuesday, with small-cap and growth names leading the action again. Breadth is very strong at almost 4 to 1 positive but new 12-month highs are still quite low at around 150. The reason there aren’t more new highs is that the lagging stocks are now leading while those that were at highs just a week or so ago are correcting.

I see some good bounce action in groups like cannabis that have been acting miserable for a while. Also, oil names are coming back, and traders are looking much harder for individual stocks that are finding support and starting to turn back up.

A good example of the sort of name I’m looking at is EMCORE (EMKR) which is a small specialized semiconductor company. It trended down starting in late June and finally bounced yesterday and is testing its 50-day simple moving average this morning on contract news from Raytheon (RTX) .

I also added to a couple of cannabis names – Curaleaf (CURLF) and TerrAscend (TRSSF) . The charts still look quite poor but there now appears to be some support that will provide a framework for the trade. Urban-gro

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