My spidey senses are beginning to tingle with speculative fervor.
What we're seeing in the AI space as well as in the comeback in cryptocurrencies as of late has me thinking speculative players are soon to begin widening their net to capture alpha.
And some of these highly shorted equities with crypto exposure could be extremely ripe for short squeezes.
High on this list is Marathon Digital Holdings $MARA. It currently has in the neighborhood of 40% of its outstanding shares held in short positions. That is some major fuel for a short-covering rally if this stock starts ripping.
Here are a bunch of pictures illuminating why we think $MARA might be set up for a run higher. First up, the $MARA chart:
This is the big question for me right now. Do we get rotation into the sectors that led this market off the lows last June?
We'll be discussing it on our NEW Morning Show today. Make sure to catch us LIVE from 830AM - 10AM ET using this link.
First, here's what I mean.
Check out these 3 Index Funds that have been underperforming this year. Financials and Small-caps flirting with last summers lows, and I threw Industrials in there too as a representation of the more Value areas of the market:
Welcome back to Under the Hood, where we'll cover all the action for the week ended May 26, 2023. This report is published bi-weekly and rotated with The Minor Leaguers.
What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names.
There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.
It's not going to be finished in my lifetime or in yours or my kids' or grandkids'. That's not the point. The point is to get it started.
~ Korczak Ziolkowski
Last weekend, I took a little six-hour road trip to South Dakota to spend a full day hiking in Badlands National Park. It was amazing. The landscape is stunning and challenging to describe. It’s not quite desert. It’s not quite grassland. It’s not quite mountainous. It’s remote. Some have likened it to a moonscape. But even that doesn’t quite capture it.
You just have to go and experience it for yourself. Trust me – it’s worth it.
I also took advantage of my proximity to Mt. Rushmore to arrive at 7 a.m. the next day. I was one of the only people in the park and was lucky to have Mt. Rushmore to myself for the better part of an hour.
As amazing as Mt. Rushmore is, being there alone on a bright, sunny morning – just me, the birds, and a cup of coffee – was truly surreal. If you ever get a chance to visit the Mt. Rushmore monument, it’s worth getting there early ahead of the crowds.
Simple and straightforward. That was our roadmap back in early March.
Now, almost three months later, the dollar is putting that strategy to the test as it approaches 105 from below.
That multi-month consolidation with “continuation pattern” written all over it never continued lower.
Instead, the dollar index has chopped sideways within a tight range for almost six months. And the evidence is beginning to support a possible upside resolution…
The lack of broad US dollar weakness caught my attention back in April.
Our G-10 currency index and US dollar advance-decline line were printing potential higher lows, while DXY was on the verge of undercutting pivot lows from earlier in the year. The divergence suggested burgeoning USD strength.
