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Traders Are Struggling to Regain Confidence

I'm making a few new buys but am not moving too quickly.
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After growth stocks were pounded on Wednesday, traders are struggling to regain confidence. There is some bounce in the laggards, and breadth is 2 to 1 positive, but DJIA is lagging today, and there are only 110 names at new 12-month highs. It is pretty obvious that the inflation worries have not been set aside yet.

Traders are focusing on some stock picking and are still enticed by the EV sector, where Rivian  (RIVN) and Lucid  (LCID) are leading. Some of the high PE growth names like Affirm (AFRM) and TaskUs (TASK) are bouncing, but it isn't very energetic so far.

I'm making a few new buys but am not moving too quickly. I added to AdvisorShares Pure US Cannabis ETF (MSOS) and am looking for some entries in cannabis names such as Verano (VRNOF) , Agrify (AGFY) , and urban-gro (UGRO) , etc. A press conference is going to be held on Monday at which the Republicans will introduce their cannabis legislation. It is still early, but it should help to shine the spotlight on this group which just recently turned up from the lows.

I've also added to a few other names, including NIO (NIO) , Ondas (ONDS) , FuelCell Energy (FCEL) , Elys Game Technology (ELYS) , SAB Biotherapeutics (SABS) , and X4 Pharmaceuticals (XFOR) . I'm staying selective with my buying but have quite a bit of cash to work with, and I want to put more to work. Earnings season has been a bumpy ride, but some of the names that had good reports will offer interesting entry points as volume slows down.

I remain confident in the overall market trend, but I don't think the corrective action is over yet.

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At the time of publication, James "Rev Shark" DePorre was Long MSOS, VERNOF, AGFY, UGRO, NIO, ONDS, FCEL, ELYS, SABS, XFOR.