Cracked Market author Jani Ziedins last week warned traders who huddled at video game retailer GameStop not to get greedy – or more specifically, not to be a pig.
Good.
As the graph shows, that short squeeze worked until it didn’t. The moment ended after Robinhood and other brokers limited access to trading on GME GameStop,
and other titles that were growing in popularity. As for the reason, there will be hearings in Congress to find the culprit – hedge funds or old-fashioned margin requirements – but the end result is the same.
GameStop can still have its moments. “As for what comes next, GME will be insanely volatile for weeks and even months. This means that 50% and 100% move in both directions. But at this point, a 50% jump takes us back to $ 75. Maybe we’re going back to $ 100 or even $ 125, but waiting for something higher is just an illusion, ”says Ziedins.
Here’s Ziedins’ advice now. “For those who still have money in the market, there is no reason to throw it all away. Earn money from what’s left, learn from this lesson and return to the better prepared market next time ”, says the blogger from Cracked Market.
Cue, Frank Sinatra.
And these traders are inexperienced. Cardify, a consumer data company, did a survey of 1,600 self-directed investors on GameStop and the AMC Entertainment AMC movie chain,
and found that the majority were inexperienced investors – 44% with less than 12 months of experience and another quarter with one to two years of experience. Nearly half have made their biggest do-it-yourself commercial investment in the past four weeks, according to the survey that ended on Monday.
Why? Of these predominantly young and male investors, 45% said they had quick financial profits. Nearly 20% said it was part of a long-term investment strategy and 16% said it went against large hedge funds and institutional investors, according to Cardify.
The buzz
The January non-farm payroll report is due at 8:30 am Eastern time. Expectations are rising after solid unemployment claims and other reports this week, with Bloomberg reporting that economists’ consensus has soared from 50,000 to 100,000. An exceptionally large number can be dismissed as a peculiarity in the seasonal adjustment, rather than a change in the underlying economy.
The United States Senate passed a budget resolution in the early hours of the morning that will allow for a quick tracking of the $ 1.9 trillion coronavirus relief plan proposed by the Biden government to be approved without Republican support. Vice President Kamala Harris gave the casting vote. Johnson & Johnson JNJ,
however, he submitted his coronavirus vaccine for approval by the Food and Drug Administration.
Pinterest PINS,
the shares jumped 11% in the premarket, as the art sharing social media service reported profits exceeding forecasts with a 76% jump in revenue during the fourth quarter. Another social media service, Snap SNAP,
it also exceeded expectations. In addition to using social media, people trapped at home played video games, like Activision Blizzard ATVI,
rose 8% after reporting stronger than expected profits and reserves, increased its dividends by 15% and authorized a $ 4 billion share buyback plan.
Ford Motor Co. F,
reported a surprise profit and exceeded expectations.
Peloton Interactive PTON, manufacturer of stationary bikes,
fell 7% as it hit profits, but signaled an increase in freight and other costs. T-Mobile US TMUS,
the mobile operator also surpassed earnings expectations, but had a smoother than expected 2021 result.
Luckin Coffee, a Chinese coffee retailer listed in the United States, filed for bankruptcy less than a year after an accounting scandal.
The market
After the S&P 500 SPX,
ended Thursday at a record for the sixth time in 2021, ES00 US stock futures,
NQ00,
pointed to another earnings day.
The yield of the 10-year Treasury TMUBMUSD10Y,
rose to 1.16% after closing Thursday at its highest level in 11 months.
The graph
The more things change, the more they stay the same. Today’s technology giants are following a trajectory similar to that of radio makers in the 1920s, as well as the dot-com era at the turn of the century. “So the point is, you can firmly believe in technology’s ability to transform our lives, but still think that valuations may be in a bubble,” said Jim Reid, strategist at Deutsche Bank.
Random readings
This local government meeting at Zoom ZM,
has turned into a chaotic internet sensation.
Chocolate sales were 40% to 50% higher in areas with a higher number of COVID-19 boxes, according to confectioner Hershey HSY,
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