The BBBY squeeze and top meme stocks for August

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Today we will be going through the top trending meme stocks from August and a look at some additional features we've added to the SwaggyStocks site!

Today's Letter

• Market Update

• SwaggyStocks New Stuff

• Trending Cryptos

• Top Meme Stocks (August)

Market Update

Was the short-squeeze back on this month? The answer is both yes and no. The short-squeeze was squoze in a very select few high-short-interest names, one of them being Bed, Bath, & Beyond (BBBY)... but as usual, the squeeze was rather short-lived and if you weren't nimble with your trades you probably (almost guaranteed) you ended up in the red.

The thing about these short-squeezes is that they become overly exposed to the "WallStreetBets Effect", aka when the retail trade has become over-crowded after a rather large move to the upside. You see, usually with these meme stocks there is (almost) not even a soul talking about them, until all of a sudden EVERYONE is talking about them. If you got in after the stock made a 100% move to the upside then account may be blown.

Here's an interesting chart of BBBY stock price versus the stock's mentions on WallStreetBets. We see a steady decline in share price over the last year along with a minuscule increase in chatter that first started around the end of June. All of a sudden the stock made BIG moves and chatter increases exponentially alongside it.

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What else happened this week?

Interestingly enough, Cathie's ARKK ETF has re-bought the NVDA dip, purchasing roughly 225k shares last week. This trade came less than two weeks after the ETF sold off a similar amount of shares. Whether she's right on the trade or not, it's interesting to see an ETF focused on "long-term growth" swap around positions like this. Here's a look at how the NVDA position in ARKK has grown recently.

What's new in Swaggy Stocks

We've added two new features to the site over the last several weeks. Let's do a quick summary of them.

WallStreetBets - Fear & Greed

What used to be the "real-time" WSB sentiment page has been upgraded to a "Fear & Greed" metric that is updated throughout the day.

The metric uses a combination of recent historical stock prices and performance, mixed with social sentiment and hype. It's a lot more volatile than traditional "Fear & Greed" charts, but can be used find times of extreme fear or hype, very similarly to an RSI indicator (overbought/oversold).

Here's a look at the the metric vs SPY share price over the last 12 months. I've circled some areas of peaks and valleys and the subsequent price action in SPY. Not always, but often when the fear and greed (green line) reached extreme lows, it was followed by a move to the upside. Since WallStreetBets and meme stocks are usually very correlated to market movements, this can be used as a glorified oversold/over-bought metric. I'll be making some adjustments to the scale of the charts to make the movements a bit more readable.

NFT - Stats Tracking

We've also added NFT stats tracking that display the top traded NFTs over the past one, seven, and thirty days.

Drill down onto an NFT to see a whole category of stats (all visualized). Check out the Bored Apes Yacht Club average price versus daily average volume traded.

Trending Cryptos

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Top Meme Stocks for August

Here's how the BBBY craze looked in terms of stock mentions vs other ticker mentions on WSB for the last month.

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