Market players have been waiting all day for the Airbnb (ABNB) initial public offering to open. ABNB prices at $68 and it is now open and trading around $152. There was no immediate index reaction. Another IPO that was priced Thursday was HydroFarm (HYFM). It was priced at $20 and is now trading at around $44. While HYFM is not receiving much attention, I find the story interesting and have a small position.
While these hot IPOs are seeing a crazy amount of demand, they seem to be making many market players nervous. There has been a big increase in cautionary comments lately. Given the size of the run since the first of November and the level of speculative frenzy, it is understandable that many market players think the market needs a rest, but the irony is that the more caution and negativity there is then the greater the likelihood the market will climb a wall of worry.
So far, there has not been any major shift in the character of the market action. These big IPOs have caused a shift in the focus of many market players, but there is still an appetite for big moving stocks. My list of stocks that are moving more than 10% is still too long to count. When that changes then I'll be much more worried about the market.
My approach to the market is to react to a change in the action, rather than to try to anticipate a change. While the indexes have turned down a bit, there is no major change in the character of the action. This is just some routine softness after a good run. That doesn't mean you shouldn't cut back but nothing is indicating that a collapse is about to occur.
I continue to look for some new buys, but haven't done a whole lot. The gambling stocks are of interest and some I have on my radar include DraftKings (DKNG) , dMY Technology (DMYD) , Landcadia Holdings (LCA) , Bragg Gaming Group (BRGGF) , and Elys Game Technology (ELYS) . I don't see any rush to add to these positions but I do plan to build them.