Frothy trading in bankrupt companies, penny stocks sent red flags that a pullback was due

are some of the stocks that were trading below $1 per share in the Russell 2000.

"There's really two types of people who invest in those sorts of things. People who are outright speculative, and those who are specialists who have done the math and understand the risk for the stocks and bonds," said Ed Keon, chief investment strategist at QMA. "You also mostly see those type of investors on the bond side of things, rather than the stock side. There are those that do it properly. It's a specialist game and it's not easy to play.

Keon has become more cautious on the market which he sees overvalued by some metrics. Investors venturing into the riskier areas may have made some good returns on the rebound in airlines and other reopening plays. "They made some money and that encouraged people to do it. it's a good idea until it isn't," Keon said.

cnbc really good at cheerleading momentum on either direction , after the fact ! Completely clueless !

The market is awaiting capitulation from the RobinHoodlums.

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