Cracked Market blog author Jani Ziedins last week warned retailers that they were introduced to GameStop video game retailer not to become greedy, or more specifically, not to be a pig.
Well.
As the chart shows, this short squeeze worked until it didn’t work. The momentum disappeared after Robinhood and other runners restricted access to GameStop GME trading,
and other values that increased in popularity. As for the reason, there will be congressional hearings to find out the culprit (hedge funds or old margin requirements), but the end result is the same.
GameStop can still have its moments. “As for what’s to come, GME will be incredibly volatile for weeks and even months. That means 50% and 100% are moving in both directions. But right now, a 50% rebound is only getting us back to 75%. Maybe we go back to $ 100 or even $ 125, but expecting anything bigger is just a wishful thinking, ”says Ziedins.
Here are Ziedins’ tips. “For those who still have money on the market, there is no reason to go into the dirt. Get what you have left, learn from this lesson and return to the market better prepared next time, ”says the Cracked Market blogger.
Cue, Frank Sinatra.
And these traders have no experience. Cardify, a consumer data company, surveyed 1,600 self-directed investors at GameStop and AMC Entertainment AMC,
and found that most were inexperienced investors: 44% had less than 12 months of experience and another quarter with one or two years of experience. Nearly half made their largest business investment in four weeks, according to a survey that ended Monday.
Because? Of these overwhelming young and male investors, 45% said they made quick financial gains. Nearly 20% said it was part of a long-term investment strategy and 16% said that despite large hedge funds and institutional investors, according to Cardify.
The buzz
The January non-farm payroll report is due to be released at 8:30 a.m. East. Expectations are widening after strong unemployment claims and other reports this week, with Bloomberg that the economist’s consensus has risen from 50,000 to 100,000. An unusually high number could be ruled out as a peculiarity of seasonal adjustment rather than a change in the underlying economy.
The U.S. Senate early in the morning passed a budget resolution that would allow for a quick follow-up to the $ 1.9 trillion coronavirus relief plan proposed by the Biden administration without Republican support. Vice President Kamala Harris cast the tiebreaker vote. Johnson & Johnson JNJ,
In the meantime, he submitted his coronavirus vaccine for approval by the Food and Drug Administration.
Pinterest PINS,
shares jumped 11% in premarket trading as social media sharing service reported predictable gains in a 76% increase in revenue during the fourth quarter. Another social networking service, Snap SNAP,
also exceed expectations. In addition to using social media, people trapped at home played video games, such as Activision Blizzard ATVI,
it gained 8% after making stronger-than-expected gains and reserves, increased its dividend by 15% and authorized a $ 4 billion share repurchase plan.
Ford Motor Co. F,
reported a surprise profit and exceeded expectations.
Peloton Interactive PTON sports bike manufacturer,
fell 7% as it outperformed earnings, but marked an increase in shipping and other costs. T-Mobile US TMUS,
the mobile service operator also exceeded earnings expectations, but was geared towards a softer-than-expected 2021.
Luckin Coffee, the U.S.-listed Chinese coffee retailer, applied for bank protection, less than a year after an accounting scandal.
The market
After the S&P 500 SPX,
ended Thursday with a record for the sixth time in 2021, the future ES00 on US stocks,
NQ00,
pointed to another day of gains.
The performance of the TMUBMUSD10Y three years from the Treasury,
it rose to 1.16%, after ending Thursday at a 11-month high.
The graph
The more things change, the more they stay the same. Today’s technology giants follow a trajectory similar to that of the radio manufacturers of the 1920s, as well as in the era of the point as around the turn of the century. “So the point is, you can firmly believe in the ability of technology to transform our lives, but you still think valuations can be in a bubble,” said Jim Reid, strategist at Deutsche Bank.
Random readings
This local government meeting on Zoom ZM,
turned into a chaotic internet sensation.
According to pastry chef Hershey HSY, chocolate sales were 40% to 50% higher in areas with the highest number of COVID-19 cases,
You need to know it starts early and updates up to the opening bell, but sign up here to receive it once in your email. The email version will be sent around 7:30 am East.
Want more for the next day? Sign up for The Barron’s Daily, a morning investor briefing that includes exclusive comments from Barron’s and MarketWatch