The key to navigating this market isn't the news flow, economics, technical conditions, or even earnings. The key is to know what themes are working. That is always the case, to some degree, but it is even more so right now as a great crowd of traders is piling into whatever happens to be working.
Two themes are working right now: stocks with significant short positions and electric vehicles for governmental use.
Due to the craziness in a few names like GameStop (GME) , traders are looking at anything with a big short position as possible squeeze plays. One I've been trading is SmileDirectClub (SDC) . A few others on the radar are Beyond Meat (BYND) , Workhorse (WKHS) , and Blink (BLNK) .
The other theme today is electric vehicles. President Biden says he wants to replace the government fleet of about 645,000 gas vehicles with electric vehicles. A few names benefiting from this are Lordstown (RIDE) , XL Fleet (XL) , and Workhorse.
Overall the action is relatively mild, which is quite healthy after the chaotic 'flash crash' that occurred yesterday. We have some big earnings reports coming up, so I expect traders to not be quite as aggressive in front of the news.
I still see plenty of good stock picking, and some flat action is making charts look even better. One name I just added to was Electrameccannica Vehicles (SOLO) . Also, my Stock of the Week, Esports Entertainment Group (GMBL) , is breaking out.
