Breadth is running close to even, and the equity indices are mixed Wednesday with the Russell 2000 ETF (IWM) lagging. Most of the market energy is being sucked up by the "meme" plays such as AMC Entertainment (AMC) and GameStop (GME) . AMC is ramping up another 25%, and even if you are not trading, it is hard not to watch.
The aggressive trading in AMC is spilling over into some other highly speculative names like Kodak (KODK) and BlackBerry (BB) . One small biotechnology name that is up 150% today is BriaCell Therapeutics (BCTX) .
This sort of trading is more gambling than speculation, but it can work extremely well if you stay fast and disciplined.
Although there are some folks that argue that there is fundamental justification for the action in AMC, it is pretty clear the buyers are mostly in it because they are optimistic that a crowd of traders will continue to chase it higher. The action has little to do with the actual business and much to do with crowd psychology.
All stocks have the potential for movement based on crowd psychology, but periodically it goes to excessive levels. In the past, there has been this sort of action in groups including internet plays, dry bulk shipping, solar energy, rare earth metals, cannabis, various China names, and so on.
It is the nature of the market to create this sort of bubble action, and currently, the moves are being accentuated due to more coordinated efforts on social media.
Play the game but stay aware that this is primarily a form of gambling and has very little to do with investing or even trading.
(BlackBerry is a holding in TheStreet's Stocks Under $10 portfolio. Click here to learn more about this portfolio, trading and market commentary service.)