I'm actually digging the resolve of the market today. The trading range is narrow, but major indices climbing off the canvas twice is a signal. The session has true grit.

Now, all stocks need is a true spark.  I suspect that will have to wait until the CPI report on Friday, which will have a make-or-break impact on near term trading.

The mix is the same, with some mega cap names edging higher. But Energy is leading the way.  The sector has attracted all the hot money.  Take a look at the new weighting in the Momentum ETF.

By the way, check out stodgy Consumer Staples - momentum names?

I thought semis would catch a bid after that strong global report:

• "The Semiconductor Industry Association (SIA) today announced global semiconductor industry sales were $50.9 billion in the month of April 2022, an increase of 21.1% over the April 2021 total of $42.0 billion and 0.7% more than the March 2022 total of $50.6 billion. Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms.”
• “Sales were up compared to April 2021 in the Americas (40.9%), Europe (19.2%), Japan (18.5%), Asia Pacific/All Other (18.1%), and China (13.3%). Month-to-month sales increased in the Americas (3.1%), Japan (1.6%), and Asia Pacific/All Other (1.2%), but fell slightly in China (-0.6%), and Europe (-3.3%)."

The SOX index is positioned to pop big time (see chart).

Cathartic SPACs

While the Federal Reserve contemplates how to slow the economy down without destroying the economy, a move akin to removing cancer from a patient, it looks like the world of SPACs are succumbing to one of the more dubious offerings.  

Shares of Buzz Feed (BZFD) are higher today, but were slammed 40% yesterday, and are now changing hands around $2.44, down from a high of $14.77. The stock was valued at $1.8 billion when it began trading and now languishes slightly above $300 million.  One report says the media company, which bought Huff Post from Verizon, is down over lock up shenanigans and so-called non-traditional investors.

It’s not my kind of media, and I do not want to opine on the ideology, but rather the one thing that ties the vast majority of SPACs together. That is the unbridled greed and lack of respect for the investing public, especially non-traditional investors, or folks not in the market unless it’s something groovy like their favorite website or betting app.

The Defiance SPAK index is down to $14.00 from a high north of $30.00. At least 56 SPACs have been canceled that would have been valued at $16.0 billion.

I can only hope this will have a cathartic effect on the folks that pumped these out often under dubious sales pitches. But then again, who am I fooling - as long as they see the public as dopes, it’s unlikely they will bring better quality stuff at lower valuations to the public.

Too bad because these could have been vehicles for good.