$SMCI dragging down ES as Hindenburg Research exposes fraud – Flash Update

The ES has fallen into the band of support at the 5600-5610 level, the area I potent on in this morning’s Opening Print.  The more than normal weakness we see in the Nasdaq is being exploited by a news story out of Hindenburg Research stating that Super Micro (SMCI)  a $35 bil server maker based in Silicon Valley an investigation found evidence of fresh accounting manipulation, sibling self-dealing and sanction evasion. This is not the first time the company has been in trouble In 2018, Super Micro was temporarily delisted from Nasdaq for failing to file financial statements. By August 2020, the company was charged by the SEC for “widespread accounting violations,” mainly related to $200+ million in improperly recognized revenue and understated expenses, resulting in artificially elevated sales, earnings and profit margins and paid a $17.5 million dollar fine to the SEC. The stock is currently down on the lows of the day at 397.26, down $150.39 or 27.15%.

I am down some money getting long and just got long again at 5599.00 and still think the markets will rally off the NVDA earnings but there is some decent selling going on in the Nasdaq but I think we bounce.