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The Dow Jones industrial average finished the day with a minor loss, but told us absolutely nothing about what is really going on in the market. The theme recently has been powerful pockets of small-cap stock picking, and that continued Tuesday.

The action was not as broad as on Monday, but there were 4,650 gainers to 2,900 decliners and a lusty 1,500 stocks hitting new 12-month highs. The list of stocks up more than 20% was extremely long again and contained many cannabis, bitcoin, and biotechnology plays.

Traders are targeting low-priced, non-over-the-counter small-caps. OTC stocks can not be traded on Robinhood and are restricted in some other cases, so the social media traders are sticking to mostly non-OTC plays like Sundial Growers (SNDL)  and Sintx Technologies (SINT) .

If you focus on the indexes, earnings, or news flow, you are missing what is going on in this market. A tremendous amount of liquidity is sloshing around, and smaller traders are rampaging from one hot stock to the next. They favor sectors like cannabis and bitcoin and aren’t paying attention to the FATMAAN names that dominated the market for much of last year.

It is an excellent environment for very aggressive traders with a high tolerance for risk, but it is quite disturbing for those that don’t want to play this game. There are no signs that this is coming to an end soon, although more and more stocks are at unsustainable levels.

The indexes aren’t telling us anything about what is really happening in this market.

Have a good evening. I’ll see you tomorrow.