A weaker-than-expected GDP report of 2% annualized growth is giving the market a boost Thursday morning as inflation concerns decline and bonds (TLT) stay strong. Bond traders must have seen this news coming Wednesday as bonds spiked higher in front of this morning's report.
Trading was a mess Wednesday with Microsoft (MSFT) and Alphabet (GOOGL) covering up broad weakness, but sometimes that sort of action helps to set the stage for the next positive move.
Breadth is much better Thursday in the early going, with around 5,500 gainers to 2,250 losers, but we only have a little over 100 new 12-month highs.
Speculative traders are still very busy looking for action, although the pockets of strong momentum are still fairly narrow. We have a few SPAC plays and some short-squeeze attempts, but it is still a very inconsistent environment, especially for thinner small-caps.
One short-squeeze play I'm on today is Triterras (TRIT) . I was burned badly on this one last year when it underwent a short attack. This morning the company said its audit committee has determined that the short report had no significant facts. The company is very overdue in issuing its financial statements and is supposed to report in a matter of days. I have a small position.
While some of the best fundamental stories I see right now are in SPACs, the SPAC structure impacts how these names move. A couple I added this morning are Decarbonization Plus Acquisition Corporation III (DCRC) and IonQ, Inc. (IONQ) .
Overall the market continues to develop well, and I remain optimistic about robust trading into the end of the year.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider several of these names to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.