8/1/23 Meme Stocks Are Back


The bears tried to emerge during Monday’s trading session. The day’s trend was lower until … The final 10 minutes of trading.

Just before the closing bell, a surge of buyers appeared out of nowhere and pushed the indexes higher.

Charts from Finviz

All the major indexes closed in the green again…

  • Dow Jones +0.3%
  • Nasdaq +0.2% 
  • S&P 500 ++0.2%
  • Russell 2000 +1.1%

Sector Round Up

8 of 11 sectors ended Monday’s session higher.

At the top…

  • Energy (XLE) +1.9%
  • Real Estate (XLRE) +0.8%
  • Consumer Discretionary (XLY) +0.6%

The losers…

  • Communications (XLC) -0.0%
  • Consumer Staples (XLP) -0.5%
  • Healthcare (XLV) -0.8%

Making Memes

Trucking giant Yellow (YELL) surged 150% during Monday’s trading. 

The price spike came after the Wall Street Journal reported it was shutting down operations and laying off thousands of employees.

  • Yellow was 99 years old before the closure
  • According to the report, the company failed to deliver “service for customers or profits for investors”
  • The surge in price is reminiscence of the squeeze put on Hertz, AMC, & Gamestop in 2020 & 2021
  • Retail investors are jonesing for the next massive run
Image from Reuters & eBay

Nostalgia is the driving force behind Tupperware’s (TUP) 650% price spike over the past two weeks.

  • The stock price jumped nearly 40% during yesterday’s session alone
  • The tiny market cap makes it a prime target for retail trading surges and short squeeze


Yesterday’s buying sent the S&P 500 right back to overbought territory…

SPY Daily Candles w/10-day RSI – Chart by thinkorswim

Without any serious cool-down time, it’s unlikely that the market sustain any long-term rally.

But with so many people expecting a drawdown, it’s prime season for short squeezes.

Our advice … Trade with caution.

Your latest readout…


It’s the first trading day of August.

Historically 25% of all market gains happen on the first of the month. However, the first trading day of August is the only one with a negative average.


*Low Float
^Open Position

*ULBI on watch
CLEU support at $1.80
EYPT support at $12
MNMD support at $4.20
TUP support at $4
EH support at $20
^OSTK support at $35
UPST support at $60
NRDY support ta $4.50
AIXI on watch
WW support at $10, resistance at $12
GDRX on watch
QSI support at $3.50
MVST support at $2.50

Secondary watchlist—float 100+ million

CAVA support at $48
RGTI support at $2
MKFG resistance at $2
^IONQ support at $18
QS support at $12
XPEV on watch
^PLTR support at $18

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