Jani Ziddins, author of the Cracked Market blog, warned traders last week not to be greedy at videogame retailer GameSpot – or more specifically, for not being a pig.
As the chart suggests, this little squeeze did not work. Momentum was rocked by Robinhood and other brokerages following limited access to trading at GameStop GME.
And other securities that were growing in popularity. Why, the culprit – Congressional hearings will be held to find hedge funds or good-old-fashioned margin requirements – but the end result is the same.
GameStop can still have its moments. “For what happens next, GME will be completely volatile for weeks and months. This means 50% and 100% speed in both directions. But at this point, the 50% upside only gets us back to $ 75. Maybe we can get back to $ 100 or $ 125, but waiting for anything more is just wishful thinking, ”says Zadins.
Now here is Ziedins advice. “For those who still have money left in the market, there is no reason to ride all the way in this dirt. Learn the cash you have left, from this lesson, and come back to a better-prepared market next time, ”says the cracked market blogger.
Q, Frank Sinatra.
And those traders are inexperienced. Consumer-data firm, Cardiff, conducted a survey of 1,600 self-directed investors in GameStop and the cinema chain AMC Entertainment AMC.
And found that most were inexperienced investors – 44% with less than 12 years of experience, and another quarter with one to two years of experience. According to the survey that ended on Monday, nearly half did their biggest business in the last four weeks.
Why? 45% of these young and male investors asked for quick financial gains. Around 20% said it was part of a long-term investment strategy, and 16% asked large hedge funds and institutional investors to stop, according to Cardiff.
Nonform payroll reports for January are 8:30 am Eastern. Expectations are rising this week following solid jobless claims and other reports, with Bloomberg reporting the Economist consensus has increased from 50,000 to 100,000. An unusually large number may be dismissed as a quirk in seasonal adjustments rather than changes in the underlying economy.
In the early hours of the morning the US Senate approved a budget proposal that would allow for the fast tracking of a $ 1.9 trillion coronavirus relief plan proposed by the Biden administration that would be approved without Republican support. Vice President Kamala Harris polled superbly. Johnson & Johnson JNJ,
Meanwhile presented his coronavirus vaccine for Food and Drug Administration approval.
Shares jumped 11% in premarket trade, as the art-sharing social-media service reported forecast-beating earnings on a 76% jump in revenue during the fourth quarter. Another social-media service, Snap SNAP,
Also beat expectations. In addition to using social media, people stuck at home playing videogames, as Activision Blizzard ATVs,
It reported higher-than-expected earnings and bookings after an 8% increase, increased its dividend by 15%, and authorized a $ 4 billion share buyback plan.
Ford Motor Company F,
Reported a surprising profit and topped expectations.
Exercise Bike Manufacturer Peloton Interactive PTON,
It beat earnings as a 7% decline, but the shipping and other costs rise were flagged. T-Mobile US TMUS,
The mobile services operator also outperforms earnings expectations, but is softer than expected for 2021.
US-listed Chinese coffee retailer Lakkin Coffee filed for bankruptcy protection less than a year after an accounting scandal.
After the S&P 500 SPX,
For the sixth time in 2021, the end of the US record futures ES00 ended on Thursday,
Pointed to another day of profit.
Yield on 10-year Treasury TMUBMUSD10Y,
The high in 11 months soared to 1.16% after ending Thursday.
The more things change, the more they stay. Today’s technology giants are following a similar trajectory with radio makers of the 1920s, as well as the dot-com era around the turn of the century. Deutsche Bank strategist, Jim Reid, said, “So the point is that you may be a firm believer in our ability to technically change our lives but still the valuation may be in a bubble.”
This local government meeting on Zoom ZM,
Turned into a chaotic, internet sensation.
According to Halwai HSY, chocolate sales were 40% to 50% higher in areas with an increasing number of COVID-19 cases,
The need to know starts early and is updated until the opening bell, but sign up here to deliver it once in your email box. The emailed version will be sent around 7:30 pm Eastern.
Want more for the day ahead? Sign up for Barron’s Daily, a morning briefing for investors, featuring exclusive comments from Barron’s and MarketWatch