The author of the Cracked Market blog, Jani Ziedins, warned last week that retailers in the video game retailer PlayStop are not getting greedy – or more specifically, not being a pig.
Well.
As the graph shows, the short print worked until it did not work. Momentum faltered after Robinhood and other brokers restricted access to trading in GameStop GME,
and other securities that have increased in popularity. Why would there be congressional hearings to find the culprit – hedge funds or old-fashioned margin requirements – but the end result is the same.
GameStop may still have its moments. ‘What’s next, GME will be insanely volatile for weeks and even months. This means that 50% and 100% move in both directions. But at this stage we are only bringing a 50% refusal back to $ 75. Maybe we will come back to $ 100 or even $ 125, but waiting for something higher is just wishful thinking, ”says Ziedins.
Here is Ziedins’ advice. ‘For those who still have money left in the market, there is no reason to drive it completely into the dirt. Make money that you have left over, learn from this lesson and come to the market better prepared next time, ” says the blogger from Cracked Market.
Cue, Frank Sinatra.
And those traders are inexperienced. Cardify, a consumer data company, surveyed 1,600 self-directed investors in the GameStop and cinema chain 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, according to the survey that ended Monday, made the largest do-it-yourself trading investment ever in the past four weeks.
Why? Of these overwhelming young and male investors, 45% say for quick financial gains. Nearly 20% said it was part of a long-term investment strategy, and 16% said it was despite large hedge funds and institutional investors, according to Cardify.
The buzz
The report on the non-farming salaries for January must appear in the Eastern Cape at 08:30. Expectations are rising after strong demands for unemployment and other reports this week, and Bloomberg reports that the consensus of economists has risen from 50,000 to 100,000. An extraordinarily large number can be dismissed as a peculiarity in seasonal adjustment rather than a change in the underlying economy.
The U.S. Senate early this morning approved a budget resolution that would allow a speedy detection of the $ 1.9 billion coronavirus relief plan proposed by the Biden government without Republican support. Vice President Kamala Harris cast the casting vote. Johnson & Johnson JNJ,
has meanwhile submitted its coronavirus vaccine for approval by the Food and Drug Administration.
Pinterest PINS,
Shares rose 11% in pre-traded trading as the art-sharing social media service reported forecast-beating earnings with a 76% increase in revenue during the fourth quarter. Another social media service, Snap SNAP,
also beats expectations. In addition to using social media, people sitting at home also played video games, such as Activision Blizzard ATVI,
rose 8% after earning stronger earnings and discussion than expected, increasing its dividend by 15% and approving a $ 4 billion buyback plan.
Ford Motor Co F,
made a surprising profit and exceeded expectations.
Practitioner Peloton Interactive PTON,
fell by 7% as it beat earnings, but indicated an increase in shipping and other costs. T-Mobile VS TMUS,
the mobile service operator, also beat earnings expectations but led to a softer 2021 than expected.
Luckin Coffee, the U.S.-listed Chinese coffee retailer, filed for bankruptcy protection less than a year after an accounting scandal.
The market
After the S&P 500 SPX,
broke a record for the sixth time in 2021 on Thursday, the US stock futures ES00,
NQ00,
shown on another day of profits.
The yield on the ten-year treasury TMUBMUSD10Y,
rose to 1.16%, after ending Thursday at its highest in 11 months.
The graph
The more things change, the more they stay the same. Today’s technology giants follow a similar path as the radio manufacturers of the 1920s, as well as the dot-com era around the turn of the century. “The point, then, is that you can have a firm belief in the ability of technology to change our lives, but still think that valuations can be in a bubble,” said Jim Reid, strategist at Deutsche Bank.
Random reading
This local government meeting on Zoom ZM,
turns into a chaotic, internet sensation.
According to confectioner Hershey HSY, chocolate sales were 40% to 50% higher in areas with a greater number of COVID-19 cases.
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