Although there is widespread concern about how extended the indices are at this point, it isn't doing anything to slow down this market. The indices continue to chug along with the Russell 2000 ETF (IWM) leading the way. Tesla (TSLA) is slowing down the Nasdaq a little, but the stock has already bounced following Musk's survey about whether he should sell shares or not.
There is excellent trading in crypto-related names like Grayscale Ethereum Trust (ETHE) , Grayscale Bitcoin Trust (GBTC) , Hut 8 Mining (HUT) , Power & Digital Infrastructure Acquisition (XPDI) , Bitfarms (BITF) , Bit Digital (BTBT) , etc. Cannabis names are also smoking. AdvisorShares Pure US Cannabis ETF (MSOS) , Verano Holdings (VRNOF) , urban-gro (UGRO) , Cresco Labs (CRLBF) are seeing some of their best action in a while.
SPAC-related names are on my radar. Gores Guggenheim (GGPI) is active in front of the Rivian (RIVN) IPO later this week. GGPI is merging with the Volvo EV spinoff Northstar. My Stock of the Week is Dragoneer Growth Opportunities Corp. II (DGNS) . It is still weighed down by arbitrage pressure, but it has earnings tonight, and I expect that the market will eventually recognize that this is a meta-verse play that will benefit from that emerging theme.
This is a market for stock pickers and aggressive traders. While the big picture bears continue to whine about frothy and unsustainable action, the opportunistic bulls are finding plenty of profitable action.
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I'll take a ride with CVNA, but I will wear my safety belt -- and know when to get out.
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