It was an incredibly ugly week for “meme” stocks, so-called because Redditors love to create memes around their favorite securities.
Here’s an example for Gamestop (Ticker: GME):
The punchline is, everyone knows if you sell a winner you’re a miserable quitter … according to the denizens of Reddit, at the very least.
While GME might be in the headlines, how are the other meme stocks doing?
BB: DON’T LOOK AT YOUR ACCOUNT STATEMENT
AMC: HORROR MOVIE
It has been a bloodbath for meme stocks …
And it’s perfect that the BUZZ ETF was launched this week.
BUZZ’s goal is to buy stocks that are trending on social media sites like Reddit.
That’s not going to go well …
Because, by and large, Redditors don’t make money.
They are really bad at picking so-called “stoncks.”
In fact, a huge chunk of the posts on WallStreetBets are pumping up stocks that are doomed.
And the truth is, as fun as it is to think about people on Reddit crushing Wall Street … the real winner of the Wall Street Crush is….
The Real World
When I was first diving into Robinhood Trader, my retail trading scanner, we started by trying to track what stocks were rising in popularity on Robinhood.
After a deep dive, we figure out how to make money using this strategy:
Short the names moving up.
However, every now and again, a name climbing up the ranks would EXPLODE higher.
The issue we had was telling the difference.
That is when I got together with my data team and we realized that the stocks that were rising were not ONLY being bought by Reddit — they were being bought by impact money on Wall Street … even as other big Wall Street names like Melvin Capital caught a beatdown fueling a David vs. Goliath narrative.
The key was buying the stocks that both Robinhood AND Goldman Sachs are buying at the same time.
If you’re scouring Reddit boards looking for the next GME — you will very likely lose everything you make on whatever stock StoncksGawd382 is touting …
Unless you track what the big banks, hedge funds and market makers are buying ALONG WITH the retail public.
It’s essentially dual-factor authentication.
And our technical analysis allows us to track it granularly and proactively.
It’s what gives us an edge — and wins of 99%, 98%, 88% and 69% in the last month alone.
And with Robinhood Trader, you can have the edge, too.
Your Only Option,