{"id":127657,"date":"2021-06-04T18:06:24","date_gmt":"2021-06-04T18:06:24","guid":{"rendered":"https:\/\/precoinnews.com\/?p=127657"},"modified":"2021-06-04T18:06:24","modified_gmt":"2021-06-04T18:06:24","slug":"amc-meme-stock-surge-is-simply-just-not-healthy-miller-tabak-strategist-says","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/amc-meme-stock-surge-is-simply-just-not-healthy-miller-tabak-strategist-says\/","title":{"rendered":"AMC, meme stock surge is \u2018simply just not healthy,\u2019 Miller Tabak strategist says"},"content":{"rendered":"
Meme stocks are capping off a wild week with even more volatile moves.<\/p>\n
AMC, the current posterchild for the group, swung from losses to gains by midday Friday as investors digest the prospect of more share issuance. That stock is up more than 100% this week and has risen close to 2,700% since a January bottom.<\/p>\n
Matt Maley, chief market strategist at Miller Tabak, warns of an ugly ending to the AMC mania.<\/p>\n
"These moves are so dramatic and, to be honest with you, I just think it's a sign of froth in the marketplace. We've seen this huge amount of liquidity that the Federal Reserve has provided over the last year or so, and they've been telling us more recently that they're going to taper back on that," Maley told CNBC's "Trading Nation" on Thursday.<\/p>\n
"As that liquidity becomes a little less plentiful, some of these stocks that are trading far beyond any of their fundamentals, I think it's going to be really rough," he said.<\/p>\n
A look at AMC's charts illustrate just how parabolic a move it has been, Maley said.<\/p>\n
"You see its RSI chart, it's gotten above 90 or into the high 90s twice this year. Most companies that doesn't happen two times in a decade. So this is I think a speculative fervor and shows how speculative things are," he said.<\/p>\n