Theresa Perrin
Self-Directed Investor & Trader, Former Hospice Nurse
Heavily shorted stocks should be the first to catch a bid if this morning's selloff proves to be a reset before the market moves higher. Where the market goes next depends on this week's FOMC decision and Magnificent 7 earnings. The names to watch are IonQ, AST SpaceMobile, MARA, CleanSpark, Super Micro, CoreWeave, Hertz, Avis, Enphase, The Trade Desk, Wayfair and Hims & Hers. x.comÂ
Borrow evaporated during attempts to lower Hertz's borrow rate, making a rebound tomorrow look nearly certain. IBKR is out of shares to lend again, and Schwab shows none available at a 56.5% borrow rate. Positioning for next week's earnings is likely underway. x.com x.com x.comÂ
Moderna could get explosive above $200 as anyone who shorted last week's valuation downgrade has to cover. The shakeout on that downgrade was a killer opportunity, and the stock is now back over $200. x.comÂ
Wendy's shorts are starting to cover because they can instead short AI trades such as SanDisk, Micron, Nebius and CoreWeave, some of which are up 4,000% over the past year. x.comÂ
Tempus AI is being repriced because its acquisition of Personalis benefits directly from positive Moderna news, while short covering is still underway. Short interest is about 30 million shares, over eight days of normal 3-5 million share volume, and the three-day surge absorbed under a third of it. A small market cap makes the stock easy to push higher, and bullish divergences on the three-day and weekly charts usually last weeks to months. Resistance sits at 74-76, 80 and 84-86. x.com x.com … Show more
SPY's current pullback looks brief because whale accumulation remains above the level associated with mid-term trend continuation. The reading is 87.74%; it fell below 80% before both recent major crashes. Barring a black-swan event or major unexpected fundamental shift, this decline looks closer to earlier minor corrections. The stock market still has significant upside, and fear-driven discounts remain opportunities. x.com x.comÂ
Moderna looks like a logical play on plague-outbreak concerns, though this is outside areas of expertise. A Russian lab worker's sudden death has raised fears of a plague crisis, per Zero Hedge, with the Trump team monitoring the outbreak, and the stock is acting well. x.comÂ
US large-cap equities offer a smoother path higher than individual stocks as returns become more dispersed, with different sectors leading each day. Indexes are near all-time highs, and earnings season in two weeks could bring rerating and an S&P 500 breakout if earnings growth keeps momentum. Yields are back at all-time highs and a rate scare may come this week; any macro-driven drawdown is a chance to add risk. x.comÂ
Shorting cloud companies is the fastest way to burn money now, because every major provider is growing fast and has committed guidance in writing. Last quarter Nebius grew revenue 454% to $582M, CoreWeave 112% to $2.58B, Google Cloud 82%, Microsoft Azure 43% and Amazon's AWS 37% to $42.2B, its fastest in 18 quarters. A short like Michael Burry's reported Nebius position only works if they all walk back that guidance. x.comÂ
Small caps should lead in the coming days, and high short interest in many names could fuel a short squeeze as shorts are forced to buy back. Names include Amprius, Lemonade, LightPath, Navitas, Ichor, Cohu, ACM Research, Aeva, Ouster, Ondas, BlackSky, Critical Metals, United States Antimony, Lightwave Logic, Arteris, Sidus Space, Satellogic and Babcock & Wilcox. x.com x.comÂ
Nebius, Rocket Lab, CoreWeave and Astera Labs joining the Nasdaq-100 is a big deal because it brings significant forced buying from index funds. The stocks had become very dislocated to the downside before the news, CoreWeave especially so. x.comÂ