05Mar3:35 pmEST

There's a Lot Going on Here

Much like in the painting above, there is an awful lot going on in this market right now.

Specifically, the rise in speculative fervor for particularly high beta, riskier parts of the market like pot stocks, China internet names, and those infamous blockchain/crypto plays back in focus for hot money traders. To be sure, it remains to be seen just how long those plays can sustain moves. But if too many traders doubt the veracity of these initial pops, I suspect the momentum may have some more legs than many expect. 

On the blockchain, RIOT is as infamous as it gets after a memorable CNBC report a few years back. Still, the name is heavily-shorted and if Bitcoin truly is basing down here (using GBTC as a rough proxy) there could easily be a reprieve for a name like RIOT (or KODK LFIN MARA OSTK TEUM) to rally further after staging surprise squeezes in mid-February. 

On the RIOT daily chart, below, we can see this hot tamale basing fairly well after its February pop. Sellers have not moved back in too heavily yet, judging from the volume pattern. And, again, if Bitcoin finally gets that sustained relief rally then aggressive-minded traders could be in-and-out of RIOT for a flip.

Naturally, these types of plays are in the deep end of the ocean and should not be taken if the risk is too high for you (only you know your own risk tolerance). 

As for pot stocks, ACB CGC CRON look to be the most impressive today, with SMG a more (relatively) conservative way to play the sector. 

Flat as We Head Towards Panc... Stock Market Recap 03/05/19 ...


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