• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Meme Stock Frenzy Back In the Spotlight: Are Traders Losing Patience?
Stock

Meme Stock Frenzy Back In the Spotlight: Are Traders Losing Patience?

by May 14, 2024
by May 14, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

It’s CPI and PPI week, and traders seem to be waiting for the data before making investment decisions. While that’s happening, surprising action is brewing in meme stocks. Are traders getting tired of this indecisive stock market? 

It’s an important week in the stock market. Yet, the trading frenzy that surfaced during the pandemic seems to be coming back, at least for a short while. It’s almost as if there’s a camp that doesn’t care about inflation data, earnings from big-box retailers Home Depot (HD) and Walmart (WMT), or April retail sales data. 

Until the data is released, the broader stock market may not move much. Volatility is still low even though the CBOE Volatility Index ($VIX) ticked higher today. Market breadth is leaning toward the bullish side. The daily chart of the S&P 500 ($SPX) shows that even though the index was relatively flat today, the NYSE Advance-Decline and S&P Advance-Decline lines are trending higher. This indicates that bullish sentiment is slightly stronger than its bearish counterpart.

CHART 1. MARKET BREADTH AND THE S&P 500 INDEX. The S&P 500 is close to its all-time high, and the Advance-Decline line is trending higher. Will the market break through its all-time highs or will it be a resistance? Chart source: StockCharts.com. For educational purposes.

So Close, Yet So Far

The S&P 500, Dow Jones Industrial Average ($INDU), and Nasdaq Composite ($COMPQ) are close to their all-time highs. Given recent market action, it’s natural to expect the indexes to retest the highs. It feels as if that’s what the market wants to do but is hesitating. It wants to know the CPI number before deciding to break through the highs or move in the opposite direction.

An indecisive market makes it difficult for traders to place positions. Most seem to be waiting on the sidelines, keeping their powder dry. While the institutional traders were waiting, retail traders jumped in and brought some excitement to the stock market by bringing attention to the stocks that were popular during the pandemic.

Meme-Stocks Back In Vogue?

If you focused all your energy on watching the action in the broader market, you would have missed the excitement in “meme stock land.” Remember Gamestop (GME) and AMC Entertainment (AMC)? Well, they sparked some excitement in the market today. GME was up 74.4%, and AMC was up 78.35%. What a social media post that went viral can do to a stock’s price is amazing! GME and AMC had the highest % up moves of stocks in the NYSE.

FIGURE 2. AMC AND GME TOP THE LIST OF MARKET MOVERS. Both stocks closed higher by over 70% in Monday’s trading. This brought excitement to an otherwise dull stock market. Chart source: StockCharts.com. For educational purposes.

The Takeaway

Does this mean the meme-stock era is back? Well, if the broader market continues its indecisive, sideways moves, you can’t blame traders for turning to more exciting avenues. But there’s a chance it could be more short-lived than in the past unless the market surprises us. It could continue its sideways move or trend lower after Wednesday’s CPI report. We’ll just have to wait until Wednesday morning to find out.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • How the S&P 500 Reaches 6500 By March 2025
  • Sensitive Sectors Continue to Prop Up the S&P 500
  • $4,000 Gold? Analysts Eye New Highs on Inflation and Geopolitical Risk
  • Watch for These ADX Combinations
Share
0
FacebookTwitterPinterestWhatsapp

previous post
UK’s Cameron discussed Ukraine-Russia peace deal with Trump: report
next post
Fewer homeowners are remodeling, but demand is still ‘solid’

You may also like

Equities Struggle in Strong “NoGo” as Materials try to Curb...

April 22, 2024

$SPY FLAGS NEW “GO” TREND IN THE FACE OF DEFENSIVE...

May 13, 2024

Stock Market Today: Are Big Tech Growth Stocks Back in...

September 11, 2024

Will the Market Internals Turn More Bearish?

March 8, 2023

Gold Top? Focus on These Potential Price Objectives

June 17, 2024

Sentiment Signals Suggest Skepticism

April 24, 2025

Using the ATR Trailing Stop to Manage the Trade and...

March 8, 2024

The Hoax of Modern Finance – Part 2: Indicators, Terminology,...

December 14, 2023

Economic Modern Family Reset in July — Blueprint

July 18, 2023

S&P 4300 by End of February?

January 13, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,185 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    The Wisdom of Jesse Livermore, Part...

    May 4, 2023

    It’s Not About the Crypto, Part...

    February 16, 2023

    Identifying GREAT Trades and Looking Ahead...

    December 13, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here