It has been a very eventful morning for the market. The wild short squeeze plays are continuing, and there is a swirl of controversy over this 'manipulation'. I'll discuss this issue later, but for now, the targeting of large short positions by social media is continuing. Some like (AMC) , (KOSS) , (GME) , and (EXPR) are making huge moves.
In addition to that sideshow, we had a gap-down open with very broad selling. The indices are off the lows, but breadth is running around 4 to 1 negative, and the number of new 12-month highs is down to around 200.
The euphoria of the short squeeze held to create an atmosphere of chaos this morning, and to make it even worse, several large brokers were overwhelmed and were unable to execute trades. I was unable to make quite a few buys this morning on the Schwab (SCHW) platform.
I suspect the market would have bounced back much faster and energetically if brokers hadn't been so unreliable, but things have calmed down and there seems to be plenty of dip-buying interest.
I feel like I've been in a wrestling match this morning with the technical issues and big moves. I am trying to add a few things but have had difficulty. I did add some of my favorite SPAC, Foley Transimene Acquisition (BFT) , and also to gambling data play dMy Technology Group (DMYD) , but it was quite costly to not have a reliable broker.
I'm looking for more buys into this weakness. I believe this is just some routine corrective action that will set us up for more upside. Don't forget we have both the Fed and some major earnings reports later in the day. I don't expect either event to create more selling pressure.