For investors who are scratching their heads at the latest AMC meme stock frenzy… Joy of the Trade Head Trader Jeff Zananiri can relate.
Most new traders don’t have the resources to indulge in another meme stock, so now is the best time to take advantage of other investment opportunities while Wall Street is focused on the next AMC short squeeze.
There’s an old saying in the stock market: Don’t wait for the action, go to the action.
But in order to get to the action, you have to figure out what’s moving the market and what other investors are looking at.
That’s what we’re doing today.
You’ll see in stark contrast, exactly where the action in Wall Street is right now vs. where it’s lagging behind.
Oddly enough, it’s the traditional Nasdaq — home of the high-growth tech stocks — where investors are getting no love or action for their stocks.
And you just have to take a look at the charts to understand why…
Looking at the best and worst performing stocks in the Invesco QQQ Trust Series 1 (Nasdaq: QQQ), which tracks the Nasdaq, I’m not impressed.
Of the top 3 best performing stocks in the Nasdaq — Pinduoduo Inc. ADR (Nasdaq: PDD), Moderna Inc. (Nasdaq: MRNA) and eBay Inc. (Nasdaq: EBAY) — none of them have had noteworthy moves recently, and investors don’t seem to want anything to do with these stocks.
Pinduoduo had a 6% return, Moderna had a 5% return and eBay also had a 5% return.
These types of moves are considered commonplace in the market.
But when you look underneath the hood of the iShares Russell 2000 ETF (NYSEArca: IWM), you start to realize where all the action in Wall Street has been hiding: in the best performing Russell 2000 stocks in 2021.
The Russell 2000 is, for the most part, composed of small- and mid-cap stocks, up-and-coming value companies. Some are household names and others are names traders have never heard of.
Looking at the month-to-date (the first three trading days of June) moves of the best performing stocks in the Russell 2000, it’s flooring to see these kind of massive jumps.
GTT Communications Inc. (NYSE: GTT) had a return of about 134% while AMC Entertainment Holdings Inc. (NYSE: AMC) had a return of about 96% — though traders should still approach this bad boy with extreme caution.
And this happened in just three trading days.
Since we’ve found where all the money is flowing into, do you know what we need to do next?
Go to the action and take our piece of the pie.
Check out Jeff’s short video below to learn more about the best performing Russell 2000 stocks in 2021, and be sure to share your thoughts in the comments section below.
As always, be sure to subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video!
P.S. Legendary trader Tom Busby just discovered something shocking about the stock market…
He found a little-known pattern that occurs every Tuesday at 9:30 a.m. And traders who catch onto it could find themselves in the driver’s seat for the easiest four-day gains they’ve ever seen.
Tom kept this strategy to himself for a year…
But now that he’s been able to prove his theory on real-money trades with gains like 90% on RIOT and 122% on MRNA, he’s ready to go public with it.
And retail investors stand to benefit most from this strategy!