SP500
S&P 500 has worst week in 3 months as volatile squeeze trades fray nerves
- The major averages closed down for the day and the week after choppy
trading that reflected the sentiment of Wall Street dealing with the
collapsing short trades at the hands of the WallStreetBest crowd.
- Today, the S&P (SP500) -1.9%, the Nasdaq (COMP) -2% and Dow (DJI) -2%
finished
off their lows. And coincidence or not, their recovery came about the
same
time the Reddit trades eased off their highs as Robinhood cut the amounts
that investors could trade of volatile stocks.
- GameStop's limit is down to 1 share, and new names like Starbucks, AMD
and Moderna appeared.
- A late swoon also coincided with a GameStop spike.
- For the week the Nasdaq was the biggest decliner, down 3.5%, the worst
week since late October. It was the same for the S&P and Dow, which both
dropped 3.3% for the week.
- All the S&P sectors closed down today, with Energy (NYSEARCA:XLE) and
Info Tech (NYSEARCA:XLK) the weakest.
- All the Big 6 megacaps declined, with Tesla the the worst performer.
- "Although the recent technical selloff and short squeeze is receiving
a lot of attention ... we believe the positive macro setup, improving
fundamentals and COVID-19 outlook, strength of the U.S. consumer, as well
as the reflation theme remain the bigger factors at play," J.P. Morgan
wrote in a note today.
- in the meantime, investors will be watching to see if any more stocks
face trading limits. Robinhood also limited crypto trading due to
unusual activity.
|Today, 4:05 PM|55 Comments
S&P 500 has worst week in 3 months as volatile squeeze trades fray nerves
- The major averages closed down for the day and the week after choppy
trading that reflected the sentiment of Wall Street dealing with the
collapsing short trades at the hands of the WallStreetBest crowd.
- Today, the S&P (SP500) -1.9%, the Nasdaq (COMP) -2% and Dow (DJI) -2%
finished
off their lows. And coincidence or not, their recovery came about the
same
time the Reddit trades eased off their highs as Robinhood cut the amounts
that investors could trade of volatile stocks.
- GameStop's limit is down to 1 share, and new names like Starbucks, AMD
and Moderna appeared.
- A late swoon also coincided with a GameStop spike.
- For the week the Nasdaq was the biggest decliner, down 3.5%, the worst
week since late October. It was the same for the S&P and Dow, which both
dropped 3.3% for the week.
- All the S&P sectors closed down today, with Energy (NYSEARCA:XLE) and
Info Tech (NYSEARCA:XLK) the weakest.
- All the Big 6 megacaps declined, with Tesla the the worst performer.
- "Although the recent technical selloff and short squeeze is receiving
a lot of attention ... we believe the positive macro setup, improving
fundamentals and COVID-19 outlook, strength of the U.S. consumer, as well
as the reflation theme remain the bigger factors at play," J.P. Morgan
wrote in a note today.
- in the meantime, investors will be watching to see if any more stocks
face trading limits. Robinhood also limited crypto trading due to
unusual activity.
|Today, 4:05 PM|55 Comments
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