Bring on Act II… The Reddit circus appears here to stay for the time being (check out spot Silver contracts SIA +11% this morning), but clearly the initial shock of Act I has worn off and markets have regained their composure to start the new week. While we may all come away with a deeper understanding of the plumbing behind the scenes of equites clearing/settlement than we’d ever care to know (add it to the list of topics we’ve become experts in over the last year: epidemiology, Electoral College law, etc.) it seems more hopeful that Retail-mania won’t be the death blow to the current rally that many feared. With that, investors are piling back into the favorite names (GVIP +2.0%) they were forced to sell in last week’s de-grossing (chart below). That of course means the mega-cap FAAMG names are leading the charge: NYFANG +2.9% today after being dinged a healthy -4.1% last week and with AMZN (+3.4%) and GOOGL (+4.1%) on deck to report tomorrow night. FANG footprints are all over the sector leaders, with Autos (TSLA +5.2% after getting a broker u/g to a $1.13tn valuation… and no it’s not from WSB analysts) along with Software and Semis. Not much is red today, but Value / defensives are being overlooked amid the risk-on / re-grossing sentiment. That includes Energy, which isn’t getting a big boost to match the reports of big merger talks held last year between giants Exxon (XOM +0.1%) and Chevron (CVX +1.3%)… hello Chexxron?
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