This is exactly why you should never buy into blind-momentum meme stocks, like AMC.
As we noted on May 14, “Over the last few days, shares of AMC Entertainment (AMC) soared from a low of $2.90 to a high of $11.88. All as Roaring Kitty sparked a flurry of meme stock-buying activity. And while it’s been fun to watch AMC scream higher, we wouldn’t touch it. After all, AMC could come down as fast as it went up.”
On May 14, AMC had just rallied to an intraday high of $11.88 from a low of $5.85. Earlier that week, it traded at about $3. Those that chased AMC, hoping it would push even higher, were left holding the bag, as it sank to a recent low of $4.40.
Unfortunately, AMC is likely to head right back to $3, or less, burning the bag holders.
Sincerely,
Ian Cooper
Recent Comments