SPACs and Crypto Miners Are on My Radar


The indexes are perking up, and breadth is running about 3 to 2 positive, but the most notable action on my screen Monday morning is that speculative traders are acting more aggressively.

Strength in cryptocurrencies is helping out as crypto miners are hot, but there is more aggressive action in some of the speculative junk names. While there is plenty of bearish macro talk, traders still have plenty of cash they want to trade, and they aren’t too worried about the bears that always sound so astute and logical.

One theme I’m finding of interest is SPACs, which are highly volatile due to the unlocking of PIPEs or filing of S-1s that allow restricted stock to be sold. These SPACs are trading on the structural issues that are created by the SPAC framework, and the fundamentals become a secondary consideration.

A good example is IonQ  (IONQ) , which was sold hard following the change of its symbol but has bounced back significantly the last couple of days and has positive news flow.

Another name I’m watching is Cipher Mining (CIFR) , which is a crypto miner. It is being slammed this morning on the unlocking of PIPE shares. All of the other crypto mining stocks such as Hut 8 Mining (HUT) and Marathon Digital Holdings (MARA) are doing well, but CIFR is a victim of the SPAC structure right now, although it compares very favorably to others in the group.

My Stock of the Week is Ondas Holdings (ONDS) and is currently trading at a new closing high.

I mentioned last week that I would be looking to deploy more cash this week, and so far, the price action is looking favorable.

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