The sentiment on Wall Street is moderately bullish toward the U.S. indices. At the midway point of the session, the DJIA DOW (+82), S&P 500 SPX (+14), and NASDAQ (+55) are in the green. Unfortunately for GameStop (GME), the bids may be too little too late. Although GME rebounded from a weak open to rally +10.77%, most of the gains from last week’s spike above $400 are long gone.
This morning brought 2021’s first release of the U.S. jobs report. Here’s a look at the highlights:
Event Actual Projected Previous
Non-Farm Payrolls (NFP)(Jan.) 49K 50K -227K
Unemployment Rate (Jan.) 6.3% 6.7% 6.7%
The key takeaway from this group of figures is the falling unemployment rate. Although Non-Farm Payrolls remain depressed from levels seen last fall, January’s numbers are still a marked improvement over December. So, I think a “glass half full” view of the January jobs report is appropriate.
For GameStop, it’s all about volatility. Today is another big day, with bidders getting the upper hand on short-sellers.
GameStop Holds Firm Above Daily Support
The GME stock rollercoaster has quickly become the lead financial story of 2021. And, without a doubt, the massive short-squeeze on hedge funds will prompt a fresh set of financial regulations. New Treasury Secretary Janet Yellen suggested as much, vowing “intense scrutiny” of GME trading. Not to be outdone, the U.S. SEC is reportedly searching social media posts for signs of fraud. Don’t be surprised if the dirty words “collusion” and “insider trading” come to the forefront of the Melvin Capital, GameStop saga.
Bottom Line: In a Live Market Update from earlier this week, I put out a buy recommendation for GameStop from the $20.00 area. If we see GME tank on today’s close or early next week, this trade may set up nicely in the coming sessions.
Go to the news source: A Rough Week For GameStop, U.S. Indices Rally