Stocks are following through to the upside, and traders are contemplating whether another V-shaped bounce is developing. The conventional wisdom is that stocks don't go straight back up after the sort of correction action we have experienced recently, but in recent years V-shaped moves have become the norm rather than the exception.
The theory is that stocks don't go straight back up because there are trapped bulls looking to escape and some successful shorts that are looking for another goal. For some reason, that has not worked as well, and I suspect it is due to algorithms, ETFs, and other market structure issues. The Fear of Missing Out (FOMO) seems to kick in very fast.
My game plan is to not chase in an undisciplined manner, but I have a lot of cash on hand now, and I'm deploying some in an incremental manner. Some buys I've made this morning include IonQ (IONQ) , LendingClub (LC) , Matterport (MTTR) , Myovant Sciences (MYOV) , and Roblox (RBLX) . I'm looking to add to other favorites such as Ondas Holdings (ONDS) , Decarbonization Plus Acquisition Corporation III (DCRC) , Marqeta (MQ) , Everspin Technologies (MRAM) , and X4 Pharmaceuticals (XFOR) as well.
Chasing this move may seem undisciplined, but if you make smaller initial buys and look to add as the chart develops, it helps to reduce risk.
(Please note that due to factors including low market capitalization and/or insufficient public float, we consider XFOR to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.)