The indexes have bounced after a soft open and are trading with minor losses, but under the surface, there is plenty of chaos.
Growth stocks suffered as some of the favored names were hit hard on earnings results. That spilled over to other high P/E, growth names and also negatively impacted the speculative interest in SPACs and other sectors.
The list of names that are up more than 10% has contracted sharply, and there are no major themes dominating right now. There is a high level of volatility but the biggest losers Wednesday are those stocks that have performed best lately, such as IonQ, Inc. (IONQ) .
Market players are waiting for Rivian (RIVN) to open. It is currently indicated at around $125 after being priced at $78. At that price, it will have a market cap greater than General Motors (GM) but has yet to sell a single vehicle.
I have plenty of messy action on my screens this morning as many of the names I follow are trying to digest earnings reports. Many good reports are being sold and will eventually offer entry points, but this corrective volatility is making it difficult.
Some names I'd like to buy on weakness include The Beauty Health Company (SKIN) , (IONQ) , urban-gro (UGRO) , Altimeter Growth Corp. (AGC) , Standard Lithium Ltd. (SLI) , Hut 8 Mining (HUT) , and Lottery.com (LTRY) but I'm staying patient for now.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider some 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.