SPACs and Cannabis Are on My Screens as Traders Hunt for Action

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The indexes are trading mixed, and breadth is running at around 4,350 gainers to 3,500 decliners, but there continues to be some good speculative trading action.

The best action on my screens is in pre-deal SPACS and some de-SPACs. My Stock of the Week is Decarbonization Plus Acquisition Corporation III  (DCRC) and is off to a good start Monday morning. Other names that are active include Humacyte (HUMA) , Gores Guggenheim (GGPI) , SAB Biotherapeutics (SABS) , Merida Merger Corp. I  (MCMJ) , and Sports Entertainment Acquisition Corp. (SEAH) .

While the trading is choppy, and the S&P 500 is drifting and looking to fill its opening gap,  traders are hunting for action and remain very aggressive.

Some of the other names that I’m trading Monday morning areOndas Holdings (ONDS) , Beyond Air, (XAIR) , and cannabis. Cannabis is staying active in front of a press conference to announce a Republican bill. I’m long AdvisorShares Pure U.S. Cannabis ETF (MSOS) , Verano Holdings (VRNOF) , and several other names in the group.

We have some tension between overbought technical conditions and an appetite for speculative trading, which is causing higher levels of volatility, but the support is strong, and dips are being bought.

Please note that due to factors including low market capitalization and/or insufficient public float, we consider some of these stocks to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.