Meme Stocks, FOMC Meeting — Your Trading Week Ahead

Welcome to Your Trading Week Ahead for June 13th. Here’s what you need to know before you go…

Quick recap

It was another strong week across the major indices. The S&P 500 rose for a third straight week, reaching a new record close of 4,247 on Friday. Tech stocks led the way higher, with the Nasdaq finishing at 14,069 — up 1.85% from the previous week. Meanwhile, the Dow lagged slightly amid market rotation, closing the week down by 0.8% at 34,479.

Crypto markets continue to settle following a mixture of news over the last few weeks. Concerns over government legislation and crackdowns on digital assets have ramped up. But if the turnout at last weekend’s Bitcoin 2021 event in Miami was any indication of market sentiment, it appears crypto is here to stay. After pulling back to the $35,000 level over the weekend, Bitcoin ($BTC) is currently trading higher at $37,435 as of Sunday afternoon.

What to watch this week

Meme stock mania

The WallStreetBets crowd continued their run on the markets most heavily shorted stocks last week. But this time, they had new targets in their sights.

Stocks like Clover Health Investments ($CLOV), Cleveland-Cliffs ($CLF), and ContextLogic ($WISH) all received a massive boost from traders looking to profit from a potential short squeeze. Many of them argued the long-term outlook for these companies is more bullish than Wall Street analysts are letting on.

GameStop ($GME) also saw a resurgence ahead of its earnings last Wednesday. The OG meme stock jumped as high as $344.66 before falling all the way back down to $233.34 to close the week.

Keep a close eye on all the meme stocks. While many of them fell substantially from their recent highs, there’s no telling how the situation will play out.

Earnings roundup

Most public companies have already reported quarterly data. But there’s still a few popular stocks set to report earnings this week.

Homebuilder giant Lennar Corp. ($LEN) kicks off the notable names when they report Tuesday pre-market. Information technology company Oracle ($ORCL) reports Q4 EPS Tuesday after the close. Then on Thursday, grocery chain Kroger ($KR) reports quarterly data before the bell. Followed by firearms manufacturer Smith & Wesson ($SWBI) when they present earnings Thursday afternoon.

Economic calendar

There are several events on the calendar this week with the potential to move markets, highlighted by the FOMC June meeting and the Fed’s interest rate decision. Here’s some of the most important things to watch:

• Core retail sales – Tuesday, June 15th at 8:30am ET
• FOMC statement, meeting minutes, and the Fed’s interest rate decision – Wednesday, June 16th at 2pm ET
• FOMC economic projections – Wednesday, June 16th at 2:30pm ET
• Biden and Putin scheduled to meet at the G-7 Summit on Tuesday and Wednesday
• Initial jobless claims – Thursday, June 17th at 8:30am ET

How we trade unusual option activity: meme stock edition

Join us Wednesday after the close when Jon Najarian and Ryan Mastro analyze the recent meme stock craze. They’ll break down the unusual options activity behind stocks like $AMC, $BB, $BBBY, $CLOV, and more!

The FREE webinar kicks off 4pm ET. You won’t hear this exclusive conversation anywhere else. Click here to reserve your seat.

Interested in learning how you can use the power of unusual options activity to conquer the market? Click here to download our Insider’s Guide to Trading UOA.