James “Rev Shark” Deporre says that SPACs and crypto miners are appealing to speculative traders at the beginning of the week.
“The indexes are perking up, and breadth is running about three-to-two positive, but the most notable action on my screen Monday morning is that speculative traders are acting more aggressively,” Deporre wrote earlier this week on Real Money.
“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.”
Deporre is taking special interest in 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,” he said.
Rev Shark points to IonQ IONQ, which was “sold hard” following the change of its symbol, but has bounced back significantly.
Another name he’s watching is Cipher Mining CIFR, which is a crypto miner.
“CIFR was slammed on Monday after the unlocking of PIPE shares,” Rev Shark said. “All of the other crypto mining stocks such as Hut 8 Mining (HUT) – Get HUT 8 MINING CORP. Report and Marathon Digital Holdings (MARA) – Get MARATHON DIGITAL HOLDINGS INC Report are doing well, but CIFR is a victim of the SPAC structure right now, although it compares very favorably to others in the group.”
Deporre also has a Stock of the Week — Ondas Holdings (ONDS) , which is currently trading at a new closing high.