The army of Reddit Retail Traders which last week caused an uproar in the equity market, have today seen their momentum begin to fade.
After rising as much as 400% last week, GameStop today was down over 50%, as its share price fell to a low of $74.32 before rallying back over $150 in late morning trading, only to fall below $100 again in the afternoon session. Volume has also declined from last week and today also saw a few trading halts for good measure as the market works to find an equilibrium between the diverging views on the stock.
At the height of its rally $GME rose to an intraday high of $469 last Thursday, however many now believe the overbought stock was likely heavily shorted as many who profited from the rise looked to cash out.
In addition to $GME, shares of AMC Entertainment, which were up nearly 300% last week were also down 50% at one point on Tuesday.
Silver, another WallStreetBets pick, was down over 8% to $23.17 in today’s afternoon trading session.
NASDAQ climbs as Amazon, Alphabet set to report earnings
The NASDAQ rose on Tuesday as big tech companies are expected to post quarterly earnings results.
After better than expected figures from the likes of Microsoft and Netflix, markets anticipate similar results from Amazon and Alphabet who are set to disclose earnings after the closing bell.
Tech companies have been the biggest gainer over the last year, as many forced to stay at home due to the pandemic have had to turn to the likes of Amazon for entertainment and retail requirements.
As of writing, the NASDAQ was up 1.70%, with Amazon and Alphabet up 2.33% and 1.72% respectively.
Oil prices hit pre-pandemic levels
Prices of WTI Crude oil climbed to pre-pandemic levels as yet more optimistic vaccine news boosted energy prices.
Russia announced that its Sputnik V vaccine was 91.6% effective in preventing people from developing COVID-19 symptoms.
The news from the OPEC+ member saw WTI reach an intraday high of $55.21, its highest level since February of last year.
Energy prices hit historical lows last year as demand fell, however they have recently rebounded as many anticipate a global vaccine rollout will help boost travel and general consumption due to a recovery in economic activity.
Quote of the day – “Confidence is not ‘I will profit on this trade.’ Confidence is ‘I will be fine if I don’t profit from this trade.”Yvan Byeajee
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Senior Market Analyst