#crypto #bitcoin #ether #stocks #SPAC #risk
$DIA $SPY $QQQ #RUTX $GME $AMC $BTC $ETH ##VXX
“Today’s retail investors appetite is for the market’s speculative freedom“– Paul Ebeling
The shares of GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) are surging. Interest in special purpose acquisition companies has reignited with Chamath Palihapitiya’s blank-check firms leading the way.
Bitcoin and Ether are up after last wk’s Fibo action.
The S&P 500 is flat on the month, but shares of Reddit favos GameStop and AMC are soaring. Including Wednesday’s gains, GameStop is +40% in May while AMC has surged 95% over the same frame.
Those 2 stocks have been among the best performers in a basket of 37 the meme stocks this May. As a group, Wednesday’s 7.7% rally marked its best session since the retail focus took on the market in March.
With the retail investor movement’s momentum and both GME and AMC having high short interest, a big a short squeeze is a strong possibility at the end of this wk.
Shorts have seen mark-to-market losses of about $475-M MTD alone prior to the Wednesday’s spike.
SPAC’s, the speculative fervor may also be providing a boost for blank-check firms, which have accounted for nearly 50% of Y 2021’s record IPO volume.
Virgin Galactic Holdings Inc., a space tourism business that merged with one of Palihapitiya’s SPACs, has surged 22% this month after a decline earlier this year. Gains in the stock, popular with day traders, came after a last wk’s successful test flight.
Crypto’s Northside Fibo retrace
Wednesday, Bitcoin hung around the 40,000 mark, it has retraced 30% since that low a wk ago. Ether, the 2nd-largest cryptocurrency retraced 58% since its May low of 1,732.
Wednesday, the benchmark US stock market indexes finished at: DJIA +10.59 at 34323.05, NAS Comp +80.82 at 13738.02, S&P 500 +7.86 at 4195.99
Volume: trade on the NYSE came in at 935-M/shares exchanged
HeffX-LTN’s overall technical outlook for the major US stock market indexes is still Bullish with a Very Bullish bias in here.
- Russell 2000 +13.9% YTD
- DJIA +12.1% YTD
- S&P 500 +11.7% YTD
- NAS Comp +6.6% YTD
Looking Ahead: Investors will receive Durable Goods Orders for April, the wkly Initial and Continuing Claims report, the 2nd estimate for Q-1 GDP, and Pending Home Sales for April Thursday.
Have a healthy day, Keep the Faith!
