The senior indices are flat, Bitcoin is taking a hit, and breadth is just slightly positive but there is some good stock picking as small-caps (IWM) are leading the market with a gain of 0.5%. The Nasdaq and Nasdaq 100 (QQQ) are also perky as traders look for action in technology and SPACs
The most fascinating trading of the day is in Digital World Acquisition (DWAC) which is a SPAC that announced a deal with Trump Media for the creation of a social media site that will compete against Facebook (FB) and others. With the Trump name attached to the deal, there is tremendous interest, and the trading has more to do with politics than fundamentals. Currently, the folks that shorted are being run over by massive volume. I suspect the Trump-supporting longs are far more willing to chase the stock than the Trump-hating shorts are to sell it. Eventually, there will be some arbitrage in play, but for now, the longs smell blood, and they are pressing relentlessly.
I have quite a few stocks of interest on my screens today and have made some buys of names such as The Beauty Health Co (SKIN) , Standard Lithium (SLI) , NIO (NIO) , Ford (F) , Olaplex (OLPX) , IonQ (IONQ) , and a few others. I took some stops on the Bitcoin miners such as Hut 8 Mining (HUT) and Cipher Mining (CIFR) but anticipate I will be reloading them soon.
I continue to feel very optimistic about how trading is developing as we head into the end of the year and will be deploying more capital. I'm looking for some tips to buy, and so far they are limited
