Cracked Market blog author Jani Ziedins last week warned retailers flocking to GameStop video game retailer not to become greedy – or more accurately, not to be a pig.
Good.
As the chart shows, that short tightening worked until it didn’t work. The momentum has dropped after Robinhood and other brokerages restricted access to trading in GameStop GME,
and other securities that have grown in popularity. As for the reason, congressional hearings will be held to find out the culprit – hedge funds or old-fashioned margin requirements – but the end result is the same.
GameStop could still have its moments. “In terms of what follows, GME will be extremely volatile for weeks and even months. This means that 50% and 100% move in both directions. But right now, a 50% return brings us back to $ 75. Maybe we go back to 100 USD or even 125 USD, but waiting for something bigger is just a thought of desire “, says Ziedins.
Here is Ziedins’ advice now. “For those who still have money left on the market, there is no reason to travel to the end. Collect what you have left, learn from this lesson and return to the market better prepared next time “, says the blogger Cracked Market.
Cue, Frank Sinatra.
And those traders have no experience. Cardify, a consumer data firm, surveyed 1,600 self-directed investors in 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 to two years of experience. Nearly half have made the largest trading investment you have made in four weeks, according to a survey on Monday.
Why? Of these overwhelming young and male investors, 45% said they made quick financial profits. 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.
Buzz
The non-farm payroll for January is presented at 8:30 a.m. east. Expectations are rising after solid complaints for the unemployed and other reports this week, Bloomberg reporting that the economist’s consensus has risen from 50,000 to 100,000. An unusually large number could be rejected as a oddity of the seasonal adjustment, rather than as a change in the base economy.
In the early hours of the morning, the US Senate approved a budget resolution that will allow the rapid follow-up of the $ 1.9 trillion coronavirus aid plan proposed by the Biden administration to be approved without Republican support. Vice President Kamala Harris voted without a tie. Johnson & Johnson JNJ,
in the meantime, he presented his coronavirus vaccine for approval by the Food and Drug Administration.
Pinterest PINs,
shares rose 11% in premarket trade, as the social media sharing service reported anticipated earnings with a 76% increase in revenue in the fourth quarter. Another social media service, Snap SNAP,
it also exceeds expectations. In addition to using social media, people stuck at home were playing video games, such as Activision Blizzard ATVI,
gained 8% after reporting stronger-than-expected earnings and bookings, increased its dividend by 15% and authorized a $ 4 billion share buyback plan.
Ford Motor Co. F,
reported a surprise profit and exceeded expectations.
Exercise bike manufacturer Peloton Interactive PTON,
decreased by 7% as it gained earnings, but marked an increase in transport and other costs. T-Mobile US TMUS,
the mobile service operator also exceeded earnings expectations, but guided towards a 2021 easier than expected.
Luckin Coffee, the US-listed Chinese coffee retailer, filed for bankruptcy protection less than a year after an accounting scandal.
Market
After the S&P 500 SPX,
ended on Thursday for a record for the sixth time in 2021, US ES00 futures,
NQ00,
pointed to another day of earnings.
10-year Treasury yield TMUBMUSD10Y,
rose to 1.16%, after ending on Thursday in the last 11 months.
Chart
The more things change, the more they stay the same. Today’s tech giants follow a similar trajectory to radio producers in the 1920s, as did the dot-com era around the turn of the century. “So the idea is that you can be a firm believer in the ability of technology to transform our lives, but you still think that evaluations could be in a bubble,” said Jim Reid, a strategist at Deutsche Bank.
Random readings
This local government meeting on Zoom ZM,
turned into a chaotic sensation on the internet.
Chocolate sales were 40% to 50% higher in areas with a high number of COVID-19 cases, according to confectioner Hershey HSY,
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