Good morning, everyone, and welcome to a new week. We’re back to the old “tech up, small caps down” environment. Over the past few months, the market in general (such as the ES below) has been inflating with regularity, pausing only occasionally, similar to a kid inhaling briefly while blowing up a baloon.
The small caps, over the same time period, have been meandering as opposed to steadily inflating. Interest rate worries seem to keep this much broader basket of stocks on the edge.
Speaking of on the edge, many folks, including me, were watching the Virgin Galactic/Billionaire Ego Rocket Launch show yesterday. I thought it would be thrilling, kind of like the Felix Baumgartner jump, but frankly I found it a devastating bore.
What’s funny to me is how everyone on wallstreetbets is scurrying around with excitement, since Virgin Galactic (symbol SPCE) has become the hottest thing in town due to this launch. Since Richard Branson didn’t get burned to a crisp in some horrible accident, the boys in /wsb land figure their SPCE-stuffed accounts are going to explode at the opening bell. Well, yes, SPCE is up, to be sure, but last I checked, we’re literally talking up 0.5%.
And yet these boys have gobbled up short-dated call options with visions of GME in their eyes.
To say nothing of their solemn pledges for personal disfigurement.
