Up 137.71%! Meme Stocks Comeback or Pullback Wednesday?
$Bed Bath & Beyond(BBBY)$ rose 137.71% in a nine-day streak.
Meme Stocks Come Back
$AMC Entertainment(AMC)$ also rose 65% as market capital regains its risk appetite. The two companies pushed 37 meme stocks tracked by Bloomberg up 10% in the past week.
Data from Bloomberg
$Bed Bath & Beyond(BBBY)$ jumped 40% on Monday, trading at a record 120.5 million shares, making it the second most traded stock on the Fidelity platform.
Short Covering Pushes Meme Stock Higher
According to data from analytics firm S3 Partners:
More than half of $Bed Bath & Beyond(BBBY)$ are currently sold short,while AMC, GameStop and Wayfair short interest each takes up 20%.
- What is Short Covering?
Like what happened with the meme stock surge last year:
if enough traders pile into a heavily shorted stock, short-sellers are often forced to buy it back, helping to accelerate the rally.
Data from Apewisdom
$Solo Brands, Inc.(DTC)$$Aterian Inc.(ATER)$$Express, Inc.(EXPR)$$Beyond Meat, Inc.(BYND)$$Coinbase Global, Inc.(COIN)$$Marathon Digital Holdings Inc(MARA)$$Overstock.com(OSTK)$$MicroStrategy(MSTR)$$Clover Health Corp(CLOV)$$Bakkt Holdings, Inc.(BKKT)$
Small Cap Outperforms SPX?
In addition to meme stocks, small cap stocks also have oppotunities this week as some small-cap companies posted good earnings last week.
In the past month, $iShares Russell 2000 ETF(IWM)$rebounded higher than $S&P 500(.SPX)$.
Data from tradingview
But Cautions On Wednesday CPI
Wednesday 8:30 EDT– Core CPI m/m: forecast to decline to 0.5% from 0.7%
According to a Bloomberg survey:
economists generally expect the U.S. CPI to increase 8.8% yoy in July.
Non-farm payroll released last week was strong, which draged the market because it indicated a less possible recession. In other words, 75 bps rate hike in September is more possible.
If CPI/core CPI remains to be high, market especially the eye-catching meme stocks may suffer from rate hike speculation.
What do you think of $Bed Bath & Beyond(BBBY)$'s surge?
Will you buy meme stocks?
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Some investors need a shower and a good night's sleep
I won't invest or even trade meme stocks because no time to study chart movement and its uncertain volatility
1. Market sentiments
2. Companies performance
3. Macro economic changes
4. Political tension.. etc
focus on valuation & position
$Bed Bath & Beyond(BBBY)$ 40% stock surge is very exciting for its investors but it is like a frothy champagne bubble. Once it pops, it falls flat. Fundamentally meme stocks are not profitable but because of social media hype and FOMO, the prices reach stratospheric levels. But the prices can also plunge just as quickly.
Would I buy meme stocks? No. I am a long term investor and I seek quality stocks with solid fundamentals. They must be profitable, have a sound balance sheet and excellent management. Think Apple, Microsoft and Google - Those are my favourite kind of stocks.
@Tiger_chat @TigerStars
Not going to anyhow decide…
See see first
BBBY’s surge does not seem to have real momentum yet. A real short squeeze may be difficult after Gamestop; short sellers less likely to underestimate retail investors now