It has been a sloppy morning of trading, but the buyers are gaining some confidence now and have the indices at the highs of the day. Breadth is running slightly negative, with around 3500 gainers to 3700 decliners, but the new-highs list is strong.
Pockets for speculative action are very choppy, and it is bitcoin-related names that are leading the speculative plays. Names like Marathon Patent (MARA) and Riot Blockchain (RIOT) are the go-to stock plays when bitcoin (GBTC) is running hot like it is this morning.
One new name I'm starting today is fintech Triterras (TRIT) , which uses blockchain technology for a platform that facilitates commodity trading among small enterprises and lenders. This is a completed SPAC deal that is now trading on its own merits. This is often referred to as being 'de-SPACed'.
Oppenheimer initiated coverage last night at an "outperform" rating and a $23 target The analyst notes that "Triterras provides a marketplace that utilizes the Ethereum blockchain to connect physical commodity traders and specialty lenders." I started a position and will be looking to build it as it develops.
I'm tightening up some of my stocks this morning and working harder to protect gains. My main short-term concern is a "sell the news" reaction to the much-anticipated fiscal stimulus deal. There may be a pop first, but I don't expect it to last.
The trading seems a bit nervous as the action has become extended and a little frothy. A little rest will fix those problems pretty quickly. I don't think we are at risk for a sudden collapse at this point.
Don't forget that we will have the Fed interest rate policy news this afternoon and that could produce a little volatility -- although nothing surprising is likely.