E Market Briefing For Thursday, Jun. 3

Winding down the stimulative structures dominant during the pandemic, will be a huge challenge; something the Fed is keenly aware (and fearful) of. The move today to slightly trim a corporate lending facility, might test the waters.

The market has been efficient and correct in focusing on Energy & Oil overall for some time, as we required to lead the market in 2021 if S&P was remotely able to achieve what it has. And of course amid this distribution and rotation, for months now, it characterizes what's really going on beneath the surface.

Today was an incredible day destroying bears, in stocks like Bed Bath (BBBY) and of course AMC (AMC). Shorts were run-in, long option players made out like bandits, even as there's no basis for the gains other than short interest could ignite it. And late in the day, FireEye (FEYE), our followed cyber-security stock, sold parts of it to another, retaining some core business under the CEO's name, and more or less monetizing their holdings (over a Billion dollar deal).

Short-interest, as a percentage of floating supply, matters in all situations now. One stock we follow closely is Sorrento Therapeutics, long being pressed by bears, whether short-sellers or some other mechanism to hold price down. At this point that has likely transitioned in a base, that might need consolidating a bit, but conceivably will find shorts covering on every possible minor setback. I wouldn't be surprised if it hit 9, tried a sell-off, then popped to higher highs.

(Yes the picture above interjects Israeli politics, but it's an historical event.)

Perhaps 'by design', Sorrento (SRNE) just yesterday was a buck lower in low volume, which I thought was a set-up for a springboard above last week's 8.12 high as well as a press toward 9 if there was any news. News was double-barreled. It may have too many shares floating to really ignite a short-squeeze, but it has spiked sharply and quickly before. Perhaps again after minor consolidation?

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William K. 1 week ago Member's comment

The failure to approve the covis19 test kit proves, beyond any possible doubt,, once again, that the saying is true:" You Can;t Fix Stupid."