Nasdaq Price, Reports, and Reviews
The Nasdaq Composite Index broke over 15,000 on Tuesday, while the Nasdaq 100 brought out an estimate of 15,380. Both record highs for the tech-dominated indices. While tech has been on a profit for quite a few months because of the Fed’s ultra-loose monetary rule, new price gains in these modules are now balanced with traders looking forward to this week’s press release by Fed Chair Jay Powell at the online Jackson Hole seminar. The Fed Chair was previously expected to launch a timetable for the reduction of the $120 billion per month bond-buying agreement, a negative for the tech sector; however, these predictions have been set aside by the 600 point rally in the Nasdaq 100 over the last week. The question then arises, “are there high expectations about Powell’s speech on Friday?”
AMC Entertainment chart. Source TradinView
Meme Stocks Surges
Two of the high profile ‘meme stocks’ of the past few months, GameStop and AMC Entertainment (AMC) rose yesterday by 27 percent and 20 percent respectively. The surges, however, did not stop there, similarly, popular meme plays Clover Health and Workhorse both operated by Nasdaq grew 10 percent and 6 percent respectively. These stocks have gained greatly from the Fed’s loose cash regulations and the United States stimulus check program, with interest pushed by Reddit users’ eagerness to battle short sellers in these stocks. Short market interest in both GME and AMC stocks remain, however, not at the same high level seen at the beginning of the year, leaving them open to further ridiculous price swings around this Friday’s meeting. Yesterday’s rally saw both AMC and GameStop reach fresh multi-week highs.
Gamestop Corporation. Source TradingView
One may choose to ask what is behind these stocks’ ridiculous rise in prices, “are they selling us anything?” The simple answer is no. There are no bullish trends, no purchases, or major statements from these stock brands. Nevertheless, it looks as though the “meme stocks” short-changes investors on their gains.
Trading levels around the meme stocks market are well above the daily averages. GME stock saw an estimate of over 14 million shares exchanged compared to the daily average of 5.3 million; on the other hand as well, AMC saw 221 million shares trade against an average of 169 million.