Joel Elconin – Crazy Volatility in a Wide Range of Stocks, Including Avid Budget Group, Tesla, and Chegg
Joel Elconin, Co-Host of the Benzinga PreMarket Prep Show and Editor of The PreMarket Prep website joins us to focus on some of the most volatile stocks over the past week. We discuss the moves in Avis Budget Group (NSDAQ:CAR) that has exploded higher today on the back of strong earnings. We also look at the moves in Tesla and the online education stock CHEGG. It all goes to show that there is a lot of money in the system.
Click here to visit Joel’s site to keep up to date on all key market moves – PreMarket Prep.
Guess: Near-term, SPX tops at 4920.
Overall the meme-stocks are on the rise again the last few day. Not just the scorcher of a move higher in Avis (which was nuts), but some of the old meme-stocks like Gamestop, Bed Bath and Beyond, and AMC have been on a tear higher since last Friday.
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The animal spirits are alive and well in the speculative and mania stocks… This reminds me a lot of 1999 in final throws of the tech bubble.
Sure… there may be a lot of money sloshing around in the markets, but those funds could easily go to money heaven and get evaporated if the central bank tinkering causes the music to stop over the next 2 quarters. At the top of markets, in the euphoria phase, everyone feels smart and like their stocks can only move higher as far as the eye can see… That is usually end of cycle behavior, and after a dozen years of accommodative central banking policies we are likely closer to the end-of-cycle set up than years and years of growth. Just something to mull over…
These comments made me think back to this editorial from Jesse a few days back:
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‘How Can This Possibly Not Be A Bubble?’
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Jesse Felder – The Felder Report (10/30/2021)
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https://mailchi.mp/felder/how-can-this-not-be-a-bubble
Richard Bernstein @RBAdvisors 7:00 AM · Oct 26, 2021 – Twitter
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“How can this possibly not be a #bubble??? TSLA market cap is bigger than the #market cap of 14 other major global #auto companies combined. ”
1999-2000 : The “Internet Eyeballs Bubble” 😉
Guess: TSLA to 1261.27, then pull back for final near-term push higher.