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Here’s our usual quick tour of what’s moving on Wall Street in the mid week pre-market. Dow Jones and S&P 500 futures were both in positive territory going into Wednesday’s US trading session. The VIX was down almost 5%. Concerns over the US bond market seem to be in abeyance, at least temporarily. The Dollar Index was up 0.17%.

GameStop Corp (GME)

GameStop is back in vogue as traders try to figure out whether there is more price action to be had. The most notorious share on Wall Street seems to be in a bit of a range however, trading in the 110-125 area, although well up on where it was in early February. To be honest, any hedge fund worth its salt will avoid this like the plague. While it is tempting to look at what the real valuation of GameStop should be, and want to short it, there is just too much retail money lined up on the long side. Even a short CFD trade may be hard to procure right now, and anyway, why would you? More interestingly, volumes are well down on where they were, indicating that many stock holders are sitting on their hands or have been distracted by something else.

A date for your diary

On the 21st of October, Stuart Fieldhouse will be joining Sarah Lowther and Mark Watson-Mitchell to discuss which small cap investments they like the look of and, perhaps, which ones they do not. It promises to be a lively and insightful discussion. If you are interested in investing in small cap stocks then this could be a profitable use of your time. We hope you can make it! Sign up now

Fisker Automotive (FSR)

It would not be a good day on Wall Street without an EV maker creating some excitement. Fisker has announced it will be working with Taiwan’s Foxconn to develop a breakthrough electric vehicle. It is currently working under the code name Project Pear, and aims to build and roll out an electric vehicle that will eventually be sold globally, including key international markets like China and India. Fisker and Foxconn reckon it will be 24 months before the first EV rolls off the production line. Fisker stock has already seen some stratospheric rises this week, up from $15 to hit $28. Not bad given that you could have had it for $10 a year ago. Any EV  play like this with a strong Asia strategy component is going to attract a lot of attention.

VanEck Sectors Social Sentiment (BUZZ)

A new ETF launch from VanEck has been creating a lot of buzz (there, I said it). Its full name is VanEck Vectors Social Sentiment aka BUZZ and it is seeking to track the most favourably talked about stocks online. Companies in the fund must have a minimum market cap of $5bn. Meme stock pundit Dave Portnoy is part-owner of the business Buzz Holdings Inc which is licensing the index that the ETF is tracking. The fund is going to be tracking an index put together using machine learning which in turn leverages online sentiment. However there is also a human element here as the final decision still lies with Portnoy and his team.

HUMBL Inc (TSNPD)

OTC markets stock HUMBL completed a one for four reverse split of its common stock last week as well as creating a new class of preferred stock which will be issued to former members of HUMBL and prospective investors. COO Jeffrey Hinshaw said the move came in an effort to quell volatility in the share price, with investors complaining it was hard to pinpoint the true value. This could also force any outstanding short positions to cover. HUMBL has been attracting the interest of traders who have been interested in the possibility of a short squeeze; this action may take the wind out of the sails of that particular move, although HUMBL stock has been sliding this week in the OTC market.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

Stocks in Focus

Here are some of the smaller companies we are following most closely. They all represent significant growth stories in our view. Our in-depth reports go into more detail on why we like them.

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A date for your diary

On the 21st of October, Stuart Fieldhouse will be joining Sarah Lowther and Mark Watson-Mitchell to discuss which small cap investments they like the look of and, perhaps, which ones they do not. It promises to be a lively and insightful discussion. If you are interested in investing in small cap stocks then this could be a profitable use of your time. We hope you can make it! Sign up now

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