A Summer Dead Cat Bounce In The Meme Reddit Stocks Is All Whats Left

Summary

• Summer is known for short squeezes and momentum.
• No new money has entered the market.
• FAANG stocks have been dead money for 1 year.
• Everyone will be buying the FAANG and meme stocks and miss the big move in Gold and Silver over the summer.

No new money has entered the market. The short squeezes currently happening in AMC, GME, BYND and some other names are nothing more than a rotation of bored money trying to find a game to play. This move will be nothing more than a dead cat bounce.

The market overall has struggled to make any meaningful moves. And by the market, I mean FAANG stocks such as AAPL, NFLX, GOOGL, AMZN. These are the leaders and they have been doing nothing but trading sideways for over 1 year now! That means no true money manager is actually making money. The only people that make money in meme stocks and penny stocks are pikers and amateurs. True big money investors have made no money over the last year holding FAANG stocks. That leads me to believe that because the move has been so sideways, that more people are about to get trapped in these leaders on the way down. The entry point is too easy and the market never gives you an easy entry point. Interestingly enough FAANG topped first in September of 2018 and traded sideways all the way into the end of 2019 which was suppose to be the start of the slow grind lower but ironically enough, the COVID shut down was actually a boon for these names as they shot higher into 2020 with all the stimulus money and lock-downs which narrowly funneled the money into tech names. Now that the stimulus money has worn off and these names are trading at ridiculous PE levels for very mature companies, the market has no other game to play for the summer except the same game it played in the beginning of 2021. But institutional money will regrettably miss the move that is about to happen in Silver and Gold while thinking they have an incredible opportunity to buy FAANG. FAANG normally trades sideways in the summer while precious metals usually heat up in the summer. But this time the dumb institutional money that thinks buying the sideways trend in FAANG will be easy money into the end of the year are going to experience a painful September with no chance of recovering losses for their clients before 2021 is over. Meanwhile Silver and Gold will pullback in September with rest of the market and then shoot higher into year end surpassing the highs of the summer. Meme stocks will have crashed by year end and left unemployed stimulus check gamblers back where they started, looking for a job. Which is what they should have been doing all along.