Retail investors buying beaten-up stocks make for some bizarre trading days

Retail investors buying beaten-up stocks make for some bizarre trading days
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  • Interest in stay-at-home stocks have reached new heights in the last few days, fueled in part by hopes for a dramatic rebound in the economy.
  • Retail speculators seem to be very active in stocks beaten up in the coronavirus shutdown.
  • People at home during the pandemic have had much more time to educate themselves about the market and trade.

The interest in beaten-up stocks in energy, travel and leisure is taking some, well, bizarre turns.

I’ve written recently about the importance of retail traders in the recent rally, but the interest among the stay-at-home crowd and trading in those names seems to have reached new heights in the last few days, fueled in part by hopes for a dramatic rebound in the economy.

American Airlines goes from $11 to $22 to $18.55–in three days, on heavy volume.

Delta goes from $27 to $36 to $34.17 in five days, also on heavy volume

Hertz goes from $0.88 to $6.00 to $4.18 in four days–on volume four times normal.

Carnival Corp. goes from $17 to $25 to $23.04, also in three days.

While much of this can simply be attributed to the reopening story going well, it’s not lost that retail speculators seem to be very active in these names. The top 12 most popular stocks owned by Robinhood investors include three airlines —American, Delta, United — and two cruise companies (Carnival and Norwegian), and Microsoft and Apple.

Source: CNBC

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