This post was originally published on this site
Randy Frederick, managing director of trading and derivatives at Charles Schwab (NYSE:SCHW) in Austin, Texas, explained the recent dip saying, “People that have been investing in meme stocks have all their money in the market, and there’s not any more left.” Furthermore, traders are shifting away from riskier assets in the year’s final weeks, which might have triggered the sell-off in GME last week.
However, GME shares soared 7.6% intraday in the last trading session. The record-setting release of movie Spider-Man: No Way Home helped the two best-known meme stocks, AMC Entertainment Holdings, Inc. (NYSE:AMC) and GME, to end the week on a positive note. The rise in AMC had triggered the rally in GME. “It’s a classic meme stock rally,” Steve Sosnick, chief strategist at Interactive Brokers, surmised.
