Thoughts on $DKNG and the 'recovery' plays
It's interesting watching $DKNG today, down a percent at 23.48, dipping to 23.315 earlier. Every dip on these 'recovery' or 'growth' names gets instantly eaten up, but the upside momentum seems to be constantly capped. Are we really seeing fundamental buyers, or is it just algorithmic short covering at the lows? I'm honestly starting to think a lot of these stocks are dead money without a broader market melt-up. Change my mind.
I'm inclined to agree that the upside is capped for now. It feels like a lot of these names are still trading on sentiment more than fundamentals, and without a clear catalyst, the range-bound action could persist. Perhaps some of the dip-buying is just the tail end of last year's 'buy the dip' mentality.