Raiders of the Saved Ark

We continue to see improving trading conditions this week, as our working thesis (with we laid out yesterday morning) of an intermediate-term bottom seems to be holding true. In order to continue to see more improvements, tech clearly needs to firm up and absorb, eventually shaking off, the harsh selling the last few weeks. And whether she wants it or not, Cathie Woods' Ark ETFs are at the epicenter of the growth theme. 

Specifically, that means on the downswings her holdings will be in the crosshairs for shorts going forward. However, the flip side of that coin is that when the liquidation events abate, as they have for now, names which have been demolished and are owned by her ETFs, like NNDM getting a huge bounce today.

In addition, early-stage speculative healthcare play, ONVO (below on it daily chart), also becomes an intriguing bounce plays to capture aggressive relief rallies relating back to ARKK. Note that ONVO literally got cut in half in only a few weeks time. Indeed, everyone knows about the TSLA-ARKK relationship at this point. But looking down her list of ARKK holdings offers other opportunities, too, and probably better ones in terms of capturing alpha this point, anyway. 

Elsewhere, President Biden is set to give a big primetime speech tonight no doubt touting the stimulus. ABNB and SHAK are still two re-opening/stimulus winners I am betting on. 

Overall, this rally has the look and feel of a feel-good spring moment for bulls. I have my doubts about its ability to last into summer, let alone beyond Easter. But that is still a long way off at the point.