The market action Thursday has turned choppy and sloppy, with breadth slipping to close to 2-to-1 negative. Cryptocurrencies are being hit fairly hard, with both Ethereum (ETHE) and Bitcoin (GBTC) dropping close to 10% at one point. They are bouncing back, but that volatility is slowing down some of the speculative action inequities.
There is still a good number of 10% movers time frames that appear to be quite short. The main theme I see on my screens is de-SPACs. There have been some crazy squeezes lately in low-float de-SPACS such as IronNet (IRNT) , so traders are hunting for the next one. I'm watching Reservoir Media (RSVR) VPC Impact Acquisition Holdings (VIH) , Surrozen (SRZN) , and a few others.
The safe-haven today has been the FATMAAN stocks, which are helping the Nasdaq 100 ETF (QQQ) to lead while the other indices are in the red.
The market needs some resets in stocks that have recently had the strongest runs, and we see that to some extent. It is healthy action, although the bears are sure to see it as a harbinger of disaster.