We have some very mixed action Tuesday morning, and if you are looking for logical trading, you will likely be disappointed.
Breadth is close to even, but what is most notable are the pockets of hot action. "Old" meme names such as Eastman Kodak (KODK) , Carver Bancorp (CARV) , GameStop (GME) , and Koss Corp. (KOSS) are active. Social media has also jumped on Wendy's (WEN) and Academy Sports and Outdoors (ASO) , which are a bit stodgy for folks that are trading something like AMC Entertainment (AMC) .
There is also action in the Russell 3000 addition list that I discussed extensively Monday. The focus today is on "de-SPACs," which are SPACs that have closed deals and are no longer trading with the downside protection of the Net Asset Value. The biggest mover is Clover Health Investments (CLOV) , but there are others moving as well, including Canoo, Inc. (GOEV) , Velodyne Lidar (VLDR) , CarLotz (LOTZ) , Skillz (SKLZ) , Metromile (MILE) .
There isn't any major shift fundamentally in these names, but this is a market where "groupthink" dominates, and that means going after themes like de-SPACs when they start to move.
These pockets of momentum are creating some good trading action if you stick with the right themes, but much of the rest of the market is pretty lethargic.
Everything cryptocurrency is being brutalized, and that is probably producing rotation into the memes and themes. I'll be looking for the next name to catch some heat from short attention span traders.