“Every major peak gets cinematic treatment”
Back in early 2021, the meme stock craze was going strong.
As you’ll recall that craze was all over the news and revolved around favorite stocks promoted by largely novice traders via social media. This January 27, 2021 New York Times news item sums up the frenzy surrounding one of those stocks:
‘Dumb Money’ Is on GameStop, and It’s Beating Wall Street at Its Own Game
GameStop shares have soared 1,700 percent as millions of small investors, egged on by social media, employ a classic Wall Street tactic to put the squeeze — on Wall Street.
A few days later, after GameStop shares had fallen hard, our February 2021 Elliott Wave Financial Forecast offered this warning:
Every major peak gets cinematic treatment and the current one is no exception. … The Wall Street Journal reported, “Netflix, MGM Race to Produce Projects About GameStop Saga.”
After that big decline in Gamestop shares in late January and early February 2021, the share price did bounce back, but has since fallen dramatically. Even so, some traders are not fazed, which is testimony to the high degree of overall optimism toward financial markets.
Our just-published February Elliott Wave Financial Forecast provides an update with this chart and commentary:
The sustained public tolerance for falling prices is well illustrated by the resilience of retail demand for GameStop shares. GME is down 88% from its intraday high of $120.75 on January 28, 2021. But the faith in GME as a vehicle for wealth continues. … On January 22, TheStreet’s “meme maven” columnist added a host of “Reasons to Buy GameStop.” There’s just no quenching the demand for GME shares.
Again, this speaks to the high degree of optimism toward the market as a whole and our latest analysis of the main U.S. stock indexes is something you need to see for yourself.
Review it carefully so you can prepare for what may be ahead. Just follow the link below to get started now.
Here’s a Warning from the Recently Published February Elliott Wave Financial Forecast:
“The stock market remains highly fractured.”
Get the important details which prompt that statement – plus, delve into our analysis of bonds, the U.S. Dollar, gold, silver and the U.S. economy.
Yes, financial optimism is sky high, yet that is when investors need to be the most cautious.
Get near-, intermediate- and long-term analysis of major U.S. financials markets as you tap into the insights of our main investor service.
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