By Eli, Zoe
Thursday's overall flow was mixed with a bullish lean as the day progressed. Call sweepers were selective, just didn't seem too interested in another widely watched inflation gauge in the PPI.
This week, they found something in this inflation scare to get some real selling started, but as usual, it's all noise. Under the belly, there has been selling all over the yard in this market. Growth stocks have been obliterated and players have been positioning for "higher rates" for quite a bit now. Institutions have been net sellers of tech. Now it's just starting to have an impact on other parts of the market.
Here's how we approach it, stick to the original plan since the start of earnings season, remain patient with both eyes wide open and let the institutional sweepers be our guide. Waiting on institutional sweepers to do some real accumulation in names at quality risk/reward spots.
Thursday's highlights
Chinese stocks underperformed with $Alibaba Group Holding Ltd(BABA.US)$ sinking after reporting its first-ever quarterly loss due to the antitrust fine levied on it in the quarter and regulatory concerns, and $XPeng Inc.(XPEV.US)$ opening higher on its strong earnings and deliveries but rolling to red with $NIO Inc.(NIO.US)$, $Kandi Technolgies(KNDI.US)$, $li Auto Inc.(LI.US)$ on reports that regulators are working n a new licensing policy for EVs.
Recent IPOs fall double-digits on earnings - in e-commerce, $ContextLogic(WISH.US)$ hits its new record low on its weak guidance, $Coupang Inc(CPNG.US)$ trades at its record low after its first public report, $Poshmark, Inc.(POSH.US)$ also trades at its lowest ever price, and $ThredUp Inc.(TDUP.US)$ avoids making record lows but the stock plummets on its wider than expected loss in its 1st earnings; $Bumble(BMBL.US)$ also stumbles to record lows since its IPO in Feb after issuing cautiously conservative guidance in its first earnings as a public company.
Bitcoin bumbled, dips below $47K for the first time since early March after Elon Musk was critical of the environmental impact of mining the currency, pressuring miners $Riot Blockchain Inc(RIOT.US)$, $Marathon Digital Holdings Inc(MARA.US)$ to their lowest levels in more than 3 months; the pullback also takes related stocks with it - $Coinbase Global, Inc.(COIN.US)$ ahead of its first public earnings tonight, $Square, INC.(SQ.US)$ trades below $200 for the first time since March 5th
In retail earnings: $YETI Holdings Inc(YETI.US)$, $Fossil Group Inc(FOSL.US)$ spike on their beat-and-raise reports, $Boot Barn Holdings Inc(BOOT.US)$ jumps on its beat, while $Casper Sleep Inc(CSPR.US)$, $Canada Goose Holdings Inc(GOOS.US)$ slip despite their beats, and used car sellers $Vroom Inc(VRM.US)$, $Shift Technologies Inc(SFT.US)$ give up early gains on their beats.
$AMC Entertainment Holdings Inc(AMC.US)$ rips higher after completing its at-the-market equity offering, lifting other Reddit meme stocks $GameStop Corp(GME.US)$, $Koss Corp(KOSS.US)$, $Express, Inc.(EXPR.US)$.
Notable bettings toward broader market indices ETF on 5/14
Individuals breakdown by sectors (5/14 notable bets)
Tech
Industrial
Consumer Cyclical
Financial
Communication Services
Healthcare
Energy
Real Estate
Basic materials
Consumer Defensive
Utilities
