Stephen “Sarge” Guilfoyle, Real Money contributor, discussed the the meme stocks.
And he actually put his money where his mouth is and bought AMC for a day trade yesterday. However, as the apes will disagree with this, he did sell his position at $55 a share.
Simply put, the meme stocks are disrupting market data. Winners beat losers at the NYSE by a narrow-ish 9 to 7, and by just a smidge at the Nasdaq. Yet, advancing volume clobbered declining volume by almost 3 to 1 at both the NYSE and the Nasdaq. Aggregate trading volume increased significantly for names domiciled at both of these primary exchanges.
I am not going to go through the entire gamut of meme stocks, such as GameStop (GME) , Bed Bath & Beyond (BBBY) , BlackBerry (BB) and others, but the one that made the most headlines, and traded the most on Wednesday was yet again AMC Entertainment (AMC) .
AMC ran 95% on Wednesday and appears as the wee hours pass to be percolating up another 21% overnight. I see the name trading with a $75 handle as I write this piece. The point I am trying to make is that AMC alone accounted for more than 13% of aggregate NYSE trading volume on Wednesday. Who knows what percentage of all trading for the day was attributable to these meme stocks as a group? While this “craze,” which is hardly crazy (short interest is a fundamental metric) remains a central market theme, breadth cannot be a trustworthy measure for daily market health. It really is that simple.
Recap TheStreet Live: Everything to Watch in the Markets Thursday