We have some very dramatic action this morning as the first real bout of panic selling in a very long time hit at the open. Many traders saw weeks and months of profits disappearing, and they raced to close out some positions to stem the bleeding. There were no immediate signs of dip buyers, but they finally showed up and have the S&P 500 above the level at which it opened.
Even with the sizable relief bounce after the opening panic, there is a substantial amount of red on the screens. Breath is running at a bit less than 4 to 1 negative, and that list of 10% moves that I mention so often is down to just a dozen or so names.
Traders are hoping that the open was the washout that will put the market back on track, but even if it is low, there is going to continue to be some major rotation taking place. SPACs are in disarray, and many of the social media momentum plays are broken. Bitcoin is bouncing, but it is likely to see elevated volatility continuing.
In this sort of action, my primary goal is to stay flexible and not just sit there. Sometimes I will find it beneficial to sell one position that is down and rotate the money into a different one.
I've added a few things this morning, including Xeris Pharmaceuticals (XERS) , Aurinia Pharmaceuticals (AUPH) , Bragg Gaming (BRGGF) , New Providence Acquisition (NPA) , dMY Technology (DMYD) , DermTech (DMTK) , AMMO (POWW) , Elys Game Technology (ELYS) , etc.
The bounce is gaining steam as I write, and it doesn't hurt that Jerome Powell is restating all the dovish comments he has been making for the past year.