Positive market breadth ALERT >>>
77% of S&P 500 stocks are now trading above their 200-day moving average, one of the highest levels in the last 2 years Source: Barchart
Meme Stocks' Performance on Monday:
1. Gamestop, $GME: +110% 2. AMC Entertainment, $AMC: +25% 3. Reddit, $RDDT: +15% 4. Spirit Airlines, $SAVE: +15% 5. Lucid Motors, $LCID: +13% 6. Rivian, $RIVN: +10% 7. Nio, $NIO: +10% 8. ContextLogic, $WISH: +9% Monday alone, meme stocks have officially added over $10 BILLION in market cap. Over the last 3 weeks, these stocks have added nearly $25 billion in market cap. Most meme stocks all hit multi-year highs on the return of "Roaring Kitty" on Monday... How high can this go? Source: The Kobeissi Letter
BREAKING 🚨: GameStop Short Sellers
Short Sellers in $GME have reportedly lost more than $1 billion from Monday's huge move according to S3 partners Gamestop, $GME, is now a $10 BILLION company for the first time since October 2022. The stock was up 91% on Monday and has been halted FOUR times. Since April 23rd, $GME has now added $6 BILLION in market cap. The return of "Roaring Kitty" to X has sparked a return of the 2021 meme stock rally. As a result, $GME is now one of the 600 largest public companies in the US.,, Source: Barchart, The Kobeissi Letter
Buybacks are Back
Sources: The Wall Street Journal, Bloomberg
S&P 500 companies continue to outpace earnings expectations, but not quite as much on the sales side.
But now we are seeing these expectations rise, so the quarters ahead may become a bit more challenging as we may see earnings growth slowing at the same time. Source: Bloomberg, Markets & Mayhem
In most cases, market breadth leads price. NYSE, S&P 500, and Midcap advance/decline lines all made new all-time highs last week.
Small caps are on the verge of new 52-wk highs. Some support for a potential summer rally? Source: Ryan Detrick
"Power Up America" theme is Goldman's top performing basket year-to-date w/+37.5% driven by global data centers' eye-popping demand for power.
17 of the 22 companies from the basket that have reported earnings have beat estimates by an average of +29%. Source: HolgerZ, Bloomberg
Retail investors have bought over $5 billion of leveraged equity ETFs in the last 12 months, the most since 2022.
This marks a $3 billion increase on a 1-month rolling sum basis in just a few months. Since the October 2023 low, retail investors have been piling into leveraged ETFs. However, a similar pattern was seen in 2021 and early 2022 after which retail experienced significant losses. The average retail investor portfolio drawdown from the 2022 peak was 35% and took 1.5 years to recover. Retail risk appetite is near record highs. Source: FT, The Kobeissi Letter
