The indices are making some minor moves on rumors about a potential fiscal stimulus deal but under the surface there continues to be some very robust trading. Breadth is running 4700 gainers to 2600 decliners but, more importantly, over 900 stocks are hitting new 12-month highs and only 50 at 12-month lows.
Traders continue to hunt for big momentum and are still intensely focused on SPAC names. Three SPACs that are in the battery area are a good example. QuantumScape (QS) , RMG Acquisition (RMG) , and Tuscan Holdings (THCB) are trading very strong.
The action in the SPAC names is classic 'hot sector' trading. There are about 200 stocks in the sector and traders are constantly looking for the next one that might have a deal or is about ready to close a merger. Everyone is hoping to catch the next one to go parabolic like Luminar (LAZR) or QS.
I've been focused for a while on Trine Acquisition (TRNE) . It looks like the deal with Desktop Metals is approved and that the symbol change to DM should occur maybe tomorrow. I am looking for the company to issue a press release soon.
The indices aren't doing much today but it continues to be a great market for trading and stock picking. The DoorDash IPO is about to open and will receive much attention from the business media but the small investors are shut out of deals like that and are feasting on the SPACs instead.