It's hump day.
We're certainly seeing positive momentum in the market, with the S&P 500 and the Nasdaq hitting all-time highs in intraday trading.
With that, let's dive in.
Oh, and I hope you don't miss me too much, but I'll be gone until Tuesday, July 12.
Focusing in on the Federal Reserve
The Federal Reserve's minutes from its June meeting showed that the Federal Open Market Committee or FOMC debated as to whether or not the post-pandemic recovery is underway.
"When the slowing of the $120 billion in monthly bond purchases does happen, however, FOMC officials debated as to whether mortgage-backed securities should be slowed first, or sold in unison with Treasury bonds, with officials noting the need t0 be "well-positioned" to execute any tapering in response to "unexpected economic developments" which the Fed said would include faster-than anticipated progress towards its inflation and labor market goals," TheStreet's Martin Baccardax wrote.
"Various participants mentioned that they expected the conditions for beginning to reduce the pace of asset purchases to be met somewhat earlier than they had anticipated at previous meetings in light of incoming data," the minutes read. "Some participants saw the incoming data as providing a less clear signal about the underlying economic momentum and judged that the Committee would have information in coming months to make a better assessment of the path of the labor market and inflation."
Ahead of the Federal Reserve minutes, I spoke to David Keller, chief market strategist at StockCharts, about a number of things, which inevitably included his views on how the Fed is impacting markets.
"The biggest potential to move the market is tapering the bond-buying," Keller told me about the Fed.
"It's not what the Fed does, it's about expectations about what the Fed may do," Keller said ahead of the minutes. He had some concerns about how the Fed can pull back on the support that the market has been receiving "gracefully" and noted that we could see a little bit of weight on the market due to that.
Real Money's Tom Graff also discussed the minutes with me. He wrote, in a column for Real Money that, "As the Fed chief transforms from dove to hawk, he's dropping some hints inside the June meeting minutes about why the shift in character. Markets had been hotly anticipating Wednesday's release of the minutes of that meeting, after it had caught everyone by surprise last month. Both the "dot plot" and Chair Jerome Powell's talk of quantitative easing tapering suggested the Fed had turned hawkish. Some commentators were even hoping for concrete clues about timing of QE, but that was always wishful thinking. What we did find in those minutes, however, were some key clues as to why the Fed's feathers darkened."
Graff also talked to me about the minutes in an interview.
What Stood Out to Me on Wednesday
When I started at ˆTheStreet a couple of years ago, I would start each morning by checking the major news outlets and then check my watchlists to see what stocks were really moving.
Nowadays, the first thing I do when I log on is read through Reddit. There are three subreddits I follow, r/WallStreetBets, SuperStonk and WallStreetBetsNew.
Then, of course, I consult Twitter to see what stocks have caught the eyes of my followers. I tell you this because there was one particular post that caught my eye this morning.
A post from user ShortChecker laid out the differences between GameStop, AMC, and Clover Health in a very clear way (excuse their French, though).
Seriously. I praise this user for doing what the media--including myself couldn't. They singlehandedly broke it down in a few paragraphs. Meanwhile, I'm still seeing the media call every name that doubles or gets mentioned on WallStreetBets once a "meme stock."
So let's talk about this a little bit.
Every investor has their own thesis going into an investment. If they don't then they're copying someone else's thesis and--if we're being frank--not doing the due diligence that needs to be done or else it's the blind following the blind all over again.
Not all theses are the same.
Two Apes can sit in the same room and agree that they're HODLing GameStop but have different reasons for doing so.
The narrative, as ShortChecker points out, is that this group can be "cult-like," but there isn't a cult here.
And with that, let's turn our attention to AMC.
Because, as you know by now, I like to highlight the stock that I've been watching closely in the day's trading session.
But also, I want to hit on the news from yesterday. Or should I say, a tweet from yesterday.
AMC had been seeking approval to sell 25 million shares at some point next year in order to fund potential 'value creating' investment opportunities.
CEO Aron noted the 25 million request was a "more measured proposal" than the 500 million share request floated earlier this spring, which Aron said at the time would bolster the group's cash reserves and help reduce its debt load.
Aron has been very focused on the retail investor following the momentum with the Apes of Reddit.
He's even done interviews with Trey's Trades, a prominent retail investor who has his own YouTube channel with hundreds of thousands of viewers.
AMC is one of the top seven stocks on Swaggy Stocks and has a lot of overall positive sentiment.
However, in the past five days, it's down over 20% and is currently trading around $45.
It's curious to see a CEO cater so much to the investor. I've seen some pushback, saying that he's doing too much for the investor but the other half of that would be that the CEO paying so much attention to what investors want could be good for the stock.
Either way, AMC is a stock I'm going to watch amid this volatility.