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?

After squandering much good will by premature enthusiasm, the CEO knew it was essential to 'mature' some phase of their multiple solution trials and so on .. so yes we thought this was about time to see some quantifiable progress (if anything past optimum time). I think today's news would have the shares far higher if it had come months ago, but by no means is this too late for longs. I think with Abbott's test largely discredited (other than a lab-performed PCR), the market for a low-cost mass market antigen test kit is wide open now.

COVI-STIX is officially added to official government lists of point of care rapid antigen tests for the detection of SARS-CoV-2 in Mexico. More importantly if one reads the reports, COVI-STIX outperformed 'all other' tests listed for both sensitivity and specificity, per the independent government testing laboratory: Instituto de Diagnóstico y Referencia Epidemiológicos (InDRE).

Sorrento has initiated importation and commercial roll-out activities for Mexico and expects the product to be commercially available in-market within weeks. Also 'point of care' means the test should be processed/analyzed wherever it is taken, which can be at a medical facility, airline (already used by UPS on its overseas routes for crew testing so they are not quarantined in airports), or at home, work or school.

You know what is shameful? This is an American company, manufactured in America, and the first thorough evaluation finding it far superior to what is now available in the United States, happens in Mexico. The FDA filing for an EUA was 'before' the filing in Mexico. This is especially shameful for the FDA since the test results of 97% accuracy and 99% specificity exceeds all the others, at a far lower price too. It should easily overtake Abbott's test and others if our FDA will finally put politics or whatever aside, and approve the EUA.

By the way, perhaps most significantly, Sorrento completed their purchase of ACEA, the Chinese firm that has had excellent results with a drug fighting the ravages of small-cell lung cancer and B-cell lymphoma. Abivertinib is among ACEA's key compounds, hence an anchoring late-stage (salvage) drug. This is I believe a drug that has also been tested at UC Fresno and now in Brazil.

Obviously Sorrento has a laundry list of 'solutions' (most are oncology related as well as COVID) I'll not delve into now (I actually need a pain pill right now so I wish Sorrento's non-opioid pain relief would also get approved), and the deal closed with ACEA is equally important but won't get the coverage COVID does.

This converted tanker is similar to the older one that burned today. There also was a huge refinery fire on the edge of Tehran. Tensions may indirectly assist the firm Oil price, projected and believed Oil strength maintained for now (OIL).

Market should move higher on Thursday, focus remains on short-squeezes.