We have some interesting volatility this morning as the indices gapped down to start the day but the dip-buyers quickly jumped in and almost have the S&P 500 back to positive territory. Breadth is solidly negative with around 1800 gainers to 5200 losers which is reflected in the Russell 2000 ETF (IWM) which is lagging with a loss of 0.85%.
FANG stocks quickly shrugged off early weakness and are all green except for minor red in Amazon (AMZN) .
What is most interesting from my viewpoint is that the hot speculative groups such as Electric Vehicles and SPACs saw some very aggressive downside momentum as short term traders fled in a panic. This is a good illustration of how a hot group acts when it dominated by rookie traders that tend to be highly impulsive and reactive.
I've used the weakness in the group this morning to buy some Workhorse (WKHS) , Tortoise Acquisition (SHLL) , Forum Merger (FMCI) and Graf Industrial (GRAF) . I'm leaving plenty of room to add as they develop.
I'm also looking at the precious metals group and have a high weighting in that group. I started a position in SSR Mining (SSRM) .
The lesson of this market right now is that speculative trading doesn't go away easily. The hot stocks tend to have a second wind after the first batch of rookie traders are washed out.
(Amazon is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AMZN? Learn more now.
