With chips no longer leading, the market's adrift until a new sector steps up — and it may pay to watch for dilutive offerings.
Without chips to lead the market higher, the market lacks true direction until some other sector takes charge. The dynamics behind chips haven't fundamentally changed, but it is a very crowded trading space, and momentum is a factor to the downside. Experienced traders will stay nimble and small until better signals emerge. It may pay to watch out for dilutive company announcements, like convertible note offerings and secondary offerings. These maneuvers tend to emerge as companies look to tap the value created by inflated stock prices.
Kapnotes is unbiased, catalyst-driven research for active traders. We screen the market's biggest movers and hand you a focused list of trading opportunities, updated in real time throughout the day.