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(Bloomberg) – Wall Street pros are stepping in to fuel the latest installment of equity volatility even amid signs of individual investor weariness.
That’s according to data compiled by Vanda Research, a company that tracks retail flows in the United States, that showed weak demand for retailer favorites after the basket of 37 of those companies recorded its highest. big gains since June Tuesday.
Preferred stocks for day traders climbed 10% on Tuesday, the highest since early June as trading volumes accelerated. Long-short hedge funds that are quick to abandon bearish bets were likely among the drivers of Tuesday’s strength in stocks that have high levels of short-term interest, Vanda said in a report.
Read more: Meme Stocks posts best day since June as GameStop, AMC Surge
“Despite the large rally in memes stocks, retail buying was mostly focused on AMC, with more than $ 56 million in Tuesday’s session,” Vanda’s Ben Onatibia and Giacomo Pierantoni wrote in a note. “All other memes inventories combined totaled $ 4 million in net retail purchases.”
AMC Entertainment Holdings Inc. jumped 20% Tuesday to the highest since July 9. Shares of the theater operator ended the day down 0.7%, recording a three-day rally for a basket of meme stocks tracked by Bloomberg.
Slowing demand for retail investors who have bragged in the past about their intention to buy and hold stocks was apparent in stocks like GameStop, the original stock meme. The video game retailer suffered its biggest loss in nearly a month on Wednesday after climbing 28% for the best day since March the previous session. Clothing retailer Express Inc., which reported second-quarter net sales lower than some analyst estimates, fell 12%.
This week’s rally for AMC Entertainment and GameStop has dealt short sellers yet another blow. Investors betting against the pair have lost more than $ 1 billion in the past three days, according to data compiled by S3 Partners. That brings the combined losses for the year to $ 10.2 billion for bears on both companies, the data shows.
Skillz Inc. and Support.com Inc. are among the most short-circuited stocks to see a recent acceleration in retail purchases, according to data from Vanda. Support.com, based in Redwood City, Calif., Climbed 20% on Wednesday after closing at an all-time high in October 2004.
(Updated stock price movements throughout.)
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