I'd label this an uninspired day. There's nothing wildly exciting on my normal watchlists. There are a few movers but nothing I want to chase or fade right now in an aggressive manner. Several of the short-squeeze plays have absolutely died. That's the risk and the challenge when trading those names. Aterian (ATER) is down 38% as I'm typing, and it has been a steady bleed since the end of the first hour of trading. As quickly as we rose, we fell.
Don't get caught up too much in percentages. Remember the moves higher come from a smaller number while the reversals are from a large number. A 100% rise only needs a 50% fall to get back to where it started. So, you might see FURUs saying it is only down 40% after we rose 100% the other day. Unfortunately, unless you were in prior to the push, you are probably underwater now.
Support.com (SPRT) is getting smacked 25%. We're still well above the start of the run. Shares could have to fall another 50% to get us back to the single digit area where the biggest portion of the move began. However, I remember this in the $3 to $5 area for quite some time. Squeezers don't completely die off in an easy fashion.
They've hung onto names like AMC Entertainment (AMC) and GameStop (GME) much longer than I ever believed possible, but SPRT has retraced to $14 after hitting $60. In 14 trading days, shares have gone from $14 to $60 and back to $14. With the Greenridge merger complete, it will be interesting to see where SPRT goes from here. If the shares stay in the double digits, I fully expect an offering as soon as the company can do it.
I took a shot at Ashford Hospitality Trust (AHT) yesterday but seeing the other action today, it won't be a name I continue to hold if it closes under $15 today. While it is acting better than most of the above names, there isn't a whole lot of motivation tying me to this position. In short, I have no reason to be stubborn. Really, that sums up the current environment.
There is nothing wrong with having conviction with your long-term holdings, but there is no upside to being stubborn with your short-term trades if they aren't working. The current environment isn't very forgiving. On the plus side, it isn't punishing being wrong too hard as long as you are willing to take loss and walk away rather than being stubborn. There's enough with AHT to continue to hold above $15, so it will be worth a watch.
On the COVID side, I'm not rushing into casinos on today's beatdown but if the market provides an opportunity to get into the online gambling names or even the hybrids names, it will be one I consider taking. Thus far, the hit has been mostly confined to Wynn Resorts (WYNN) and Las Vegas Sands (LVS) , but if it does spillover as the week goes on, then this is a group I will continue to add to in the long-term portfolio.