2 Small-Cap Stocks I'm Buying as FOMO Takes Hold.



We have some melt-up motion Tuesday morning as terrible information is ignored, and FOMO takes hold.


The principal headlines are about pastime charges rising as bonds weaken, a greater hawkish Fed, and a stalemate between Russia and Ukraine. That does not appear to be information that would entice extra market exposure, however the superb rate motion is sucking in money off the sidelines. The thinking manner looks to be "What if this market continues on running?" and "What if the terrible information is already totally discounted?"


Breadth is going for walks three to 1 positive. New highs are at 116 and new lows at 132. My listing of shares up greater than 10% isn't always that long, however it is strong and growing.


There is lots of very desirable charge motion on my screens, though many shares are up three or 4 days in a row and are technically extended. The FOMO is effective and continues matters running.


One title I've noted pretty regularly is Ondas Holdings (ONDS) . The organization announced income nowadays that have been OK, however the story right here is ongoing momentum. This is one of the few performs for industrial drones or, as I like to name it, Drones as a Service (DaaS). A division of Ondas is creating unmanned drones that will be used by way of oil corporations and railroads to reveal oil fields. That is the gist of it, and the story is gaining some traction.


Another identify I delivered this morning is Aehr Test Systems (AEHR) . This one used to be warm returned in the fall as a dealer of check gear for semiconductors used in EV manufacturing. The employer has profits coming up on March 31 however has introduced some contract information and has a excellent backlog of business. For the fiscal yr ending May 2023, the modern-day EPS estimate is $0.69.


It is fresh to see so many of the badly crushed up small-caps sooner or later come to life, however it is a tad frothy now and difficult to chase. The right information is that there have to be strong help on pullbacks.


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