Stocks are set for a positive open this morning following news that the FAA is poised to issue an approval for Boeing (BA) for the 737 Max to resume flight. The Nasdaq 100 ETF (QQQ) is set to open flat which illustrates how there continues to be rotational action out of the leading big-cap technology and FATMAAN names and into the 'reopen the economy' names like airlines.
While there was some negative action in the senior indices on Tuesday, it took place on lighter volume and positive overall breadth. It looked like some routine profit-taking after a good run rather than the start of major topping action.
Most notable about the action is that there continue to be pockets of very strong momentum that are attracting aggressive traders that are immune to the negative headlines about the continued growth in Covid cases and hospitalizations.
There are some growing concerns that although effective vaccines will be on the way, the production time and distribution will be problematic. There are many state governments inclined to shut down the economy to some degree but this is not having any impact either.
Remarkably, market players are focused on where the economy will be several months from now and don't seem at all concerned about short term weakness. There is still some hope that a fiscal stimulus deal will be done but it is bogged down in ridiculous politics. It will happen sooner or later which is helping to provide support but it is an easy excuse for some short-term volatility.
My game plan is to continue to hunt for short term 'hot' speculative trades. I'm flipping some Marathon Patent (MARA) and Riot Blockchain (RIOT) , but I suspect they will remain in play as long as Bitcoin (GBTC) is running.