The stock market in recent months has become a struggle between tomorrow’s trading and today’s supply today, and last week it became messy.
Stocks valued in promises for a transformed future have been sold hard in favor of people who are about to thrive in the current spring economic resurgence. Still, after last week’s erratic swings, which culminated in Friday’s crescendo sale and a powerful upside investment, could these opponents coexist more quietly for a while?
Stocks of “disruptive technology” and pre-revenue advances and speculative SPACs with a high history-substance ratio have had a deep intensity since mid-February.
The fixation of ARK Invest ETFs from party to hunger has been adequate, irresistible and probably now exaggerated. The iconic ARK Innovation Fund (ARKK) at least on Friday had lost more than 30% in about three weeks. The fund has been popular enough because stocks are hard to borrow and Wall Street desks have been busy creating synthetic versions of the ETF to bet on hedge funds.
Was it a short-term capitulation in this subsector, which preceded a 10% rebound in ARKK from dawn until the close on Friday?