Market sentiment has changed noteably in the past couple of weeks, as retail “meme” stocks soar to new heights. This “small lot trading” activity is monitored by big brokerage houses like, Bank of America, JPM Chase, and Goldman Sachs, with the latter highlighting this way.
Summary
“Recent performance of stocks with high levels of retail activity”, stocks with high retail trading volumes have outperformed by 5% since May 12, with half of this outperformance occurring on Wednesday.
“We are watching the “meme-stock” activity closely. If this flow increases it could be a destabilizing force to markets.”
“Our EquityHub model shows about 50% of AMC & GME gamma expiring today, and so we think those stocks see some consolidation today. As GME has earnings next week attention may remain on this space and lead to further volatility. Should these stocks continue to gap higher, its likely that market makers and brokers react quickly to raise options prices (implied volatility rates) and margin rates which inhibits a Jan ’21 type move.” – Brent at spotgamma.com
Top 10 Retail “Meme” Stocks
These Top 10 stocks are ranked by performance as of Wednesday May 27 closing bell.
The entire list of 50 stocks is available as a “public chart list” on Stockcharts.com here.
We will monitor these candidates and consider trades only if the following criteria are met.
- The 9/21/50d have a bullish slope.
- Price action after 10 AM is above a bullish VWAP.
- Tier One upgrade or similar catalyst = stock “inplay”
- RVOL > 2.o and preferably higher.
- RSI, MACD are rising
| SYMBOL | NAME | SECTOR | CLOSE | CHG | % CHG | VOLUME |
|---|---|---|---|---|---|---|
| AMC | AMC – AMC Entertainment Holdings Inc. | Discretionary | 26.52 | 6.96 | 35.58 | 705511757 |
| F | F – Ford Motor Co. | Discretionary | 14.88 | 0.98 | 7.05 | 278938623 |
| X | X – USX-US Steel Group, Inc. | Materials | 26.08 | 1.41 | 5.72 | 35361374 |
| WKHS | WKHS – Workhorse Group Inc. | Discretionary | 9.62 | 0.49 | 5.37 | 11335919 |
| FCEL | FCEL – FuelCell Energy, Inc. | Technology | 9.84 | 0.43 | 4.57 | 20734600 |
| GPS | GPS – Gap, Inc. | Discretionary | 35.15 | 1.13 | 3.32 | 9579640 |
| UAA | UAA – Under Armour, Inc. | Discretionary | 22.87 | 0.70 | 3.16 | 5137731 |
| RIOT | RIOT – Riot Blockchain, Inc. | Technology | 28.50 | 0.86 | 3.11 | 23524236 |
| TLRY | TLRY – Tilray, Inc. | Health Care | 17.17 | 0.50 | 3.00 | 28423881 |
| PLTR | PLTR – Palantir Technologies, Inc. | Technology | 22.70 | 0.58 | 2.62 | 76230362 |
Given the volatile nature of “meme” stocks, and the higher risk associated with trading them, we’ve compiled this list so that we can follow “retail traders” sentiment.
Think of this as muscial chairs. You don’t want to be the last person standing.
AMC Entertainment
AMC Entertainment Holdings (AMC) reported a 1st Quarter March 2021 loss of $1.42 per share on revenue of $148.3 million. The consensus estimate was a loss of $1.28 per share on revenue of $153.6 million. The Earnings Whisper number was for a loss of $1.30 per share. Revenue fell 84.2% compared to the same quarter a year ago. – Earnings Whispers
Note the gaps in volume at levels overhead. (Left panel VBP histogram).
We’ll monitor these stocks during the LIVE broadcast, so be sure to join us today in the trading room for our LIVESTREAM broadcast during market hours, as we navigate the current environment and trade (or avoid) some of these “meme” stocks.
Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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