FAST FIVE: Hedge Funds "Confused, Baffled" And Steamrolled By Squeezes As Meme Stock Frenzy Returns
Hedge Funds “Confused, Baffled” And Steamrolled By Squeezes As Meme Stock Frenzy Returns For those who made a killing last week after buying and then (hopefully) selling such names as Hong-Kong's recently IPOed, zero revenue AMTD Digital (ticker HKD), which exploded 32,000% to surpass $400BN market cap before plummeting, we have some good news: the most-shorted, meme stock mania is back, as is FOMO.
As we first reported last week in “Explosion In Retail Buying Revealed As Source Of Latest Market Meltup”, the retail mania that characterized the market for much of H1 2021 is back.
The resurgence of this most speculative corner of the market is fueled by the previously reported explosion in retail trading which, in keeping with the good, ole Melvin tradition, are buying the stocks most shorted by hedge funds.
A rally in tech shares and other growth stocks at one point pushed the Nasdaq 100 Index into a bull market, up some 20% from a June low amid alarms from some on Wall Street that the Fed is dead-set on fighting inflation regardless of the pain for the stock market.
The top performers behind Bed Bath & Beyond and AMC were GameStop and Express.