A Few Stocks Trading on Their Own Island

The market gap higher this morning is coming from short-term oversold conditions, a circumstance which saw me taking off any bearish exposure I had on inside Market Chess Subscription Services, into the weekend. The key, it appears, it gauging the sustainability of this bounce, since we have seen a series of lower highs on many major index charts over the last month or so. 

Specifically, the IWM, ETF for the small caps in the Russell 2000 Index, found some initial selling up at $121.50 this morning, an area we have been observing for a while now. Reclaiming that reference point would be a good first step for bulls, in terms of at least bringing the ongoing range thesis back into play, if not an outright rally back to the upper end of it. 

While that is playing out, AQXP and VLTC are stealing the show with jaw-dropping gains at the open. AQXP, in particular, transformed from a penny stock last Thursday into a $54 stock this morning. Clearly, risk appetite has not yet been scared out of the market. But the largest issue is whether momentum has become so narrow in this market that the hot money is flocking from play-to-play in unison.