Meme Stocks Spike Higher as Momo Trade Returns
The rally in so-called “meme stocks” reignited in March, with GameStop (GME) spiking over 80% and AMC Entertainment (AMC) climbing nearly 50% during 10 crazy days of trading.
Meme Stocks Spike Higher as Momo Trade Returns
Pro Traders Know Probabilities Like Poker Pros Know Pot Odds
Many seasoned traders were not taken in by the meme stock hype It’s not opposable thumbs, extra cranial capacity or the ability to walk on two feet that separates humanity from animals. It’s hype. OK, maybe bees and ants let their friends know about the picnic. But humans have the unusual anti-competitive quality that spurs … Continued
The BUZZ Doesn’t Live Up to the Hype
Even in the era of meme stocks, this pricey and unpopular sentiment fund is underperforming Even people who’ve never owned stock or never played Grand Theft Auto heard about the GameStop phenomenon and the “meme stock” hype that gripped Wall Street last year. GameStop (GME) shares ended 2020 at $18.84 per share, mounting an impressive … Continued
Trading the Recent Plunge in ‘Meme Stocks,’ and Outlook for 2022
In 2021, a new niche emerged within the stock market, and this group of so-called “meme stocks” tends to be more sensitive to social media mentions, as opposed to traditional, business-related developments.
The Education of New Speculators
Don’t confuse healthy speculation with desperation Think back to the world before 2016. A world before Covid-19. A world where Donald Trump had yet to enter his first primary. Non-fungible tokens (NFTs) were in their infancy and special purpose acquisition companies (SPACs) seemed boring. GameStop wasn’t an investment vehicle but instead just a crappy little … Continued
Make up for Missed Opportunities
Believe it or not, the market for U.S. dollars bears some similarity to GameStop (GME) stock. How? Both rallied from historical lows to start 2021, fell back to those lows in February and woke up again in March. So where does that leave them? In an awkward position that has often brought traders consternation: a … Continued
Special-Purpose ETFs
Despite the tragic events of the pandemic, many fortunate households have struggled with only one issue: boredom. Working or studying from home, financially stable Americans baked sourdough, flocked to TikTok and hunted down new PlayStations or Xboxes. But people soon tired of Fortnite and Call of Duty. And with their wallets lined with stimulus cash, … Continued
That’s A Thing…
Now that we’re a few weeks removed, I think we can say, well, that happened. Welcome to the world of that’s-a-thing-days. For the uninitiated, allow me to explain. A that’s-a-thing-day is a day that begins much like any other day, but between the time you wake up and time you go to sleep, you find … Continued
GameStop Games Stop — A Post-Mortem
A short primer on short interest and the short squeeze GameStop (GME) caused quite a commotion in the markets early this year when its historic rally became headline news for nearly every major media outlet. In fact, play-by-play coverage of the electronic game retailer’s seesawing stock prices pushed news of the markets’ substantial volatility off … Continued
How Much Volatility Is Too Much?
Risk increases if a stock is too volatile or makes price moves far outside of what’s expected Options traders often gravitate toward highly volatile stocks. With volatility, they have greater expectations for the stock price and, if played correctly, a greater expectation of profitability. But if a stock is too volatile or makes price moves … Continued