Crypto sector shines as spinning action changes again

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The July 4th holiday is approaching as the second quarter draws to a close and trade action slows down. The indices are mixed Tuesday, the width is slightly positive and the pockets of momentum are limited.

Traders are chasing a few names in biotech, but there are only a dozen stocks up 10% or more. There is little trade at intraday highs and the FATMAAN names are unable to capitalize on Monday’s strength. The DJIA fell behind yesterday, but led Tuesday thanks to Goldman Sachs (GS) and Home Depot (HD).

My action of the week, CM Life Sciences (CMLF), is progressing well, but many of my other favorites are adrift due to lack of interest. There is no compelling reason to add big positions at this time as trading will continue to slow as the long weekend approaches.

Traders are trying to generate action but have so far had limited success. This is another good example of how quickly the spinning action can change. Technology and semiconductors that were hot Monday are lagging behind today.

One sector that is doing well is in crypto-related names such as Marathon Digital Holdings (MARA), Riot Blockchain (RIOT), Microstrategy (MSTR), Grayscale Ethereum Trust (ETHE) and Mogo, Inc. (MOGO).

This trading action is not very interesting at the moment, but technically it should help us give us better setups over the next week.

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