Bed Bath and Beyond store facade in red
Bed, Bath & Beyond is a meme stock now that identifiable madness is apparent in the recent price action.
The stock joins others in that “gotta-be-kidding-me” category such as GameStop
GME
Corp and AMC Entertainment
AMC
Holdings. There are more out there but it’s the price charts for these 3 that tend to reveal what meme-crazed traders (not investors) are dealing with, long and short.
Here’s the daily price chart for Bed, Bath & Beyond:
Bed, Bath & Beyond daily price chart, 8 21 22.
It’s unusual to see a brand name stock like this trade in such a wide price range so quickly and with such volume. That’s movement from 5 in late July to 30 by mid-August and then a drop back to 11 before the month is even over. Wouldn’t it have been great to know in advance that Bed, Bath & Beyond would blast up like this? Just think of the millions of dollars you could have made.
Note that whoever was buying must have been keeping a close eye on the previous peak in early March at 30 and then the subsequent lower high at just below 29 in late March. The huge volume of selling at those levels in mid-August suggests that traders doing price chart analysis of their own had a big hand in the action.
The weekly price chart for Bed, Bath & Beyond looks like this:
Bed, Bath & Beyond weekly price chart, 8 21 22.
The highest closing high for the stock is just above 35 in January, 2021. Traders had another chance to get out near that level in June, 2021 and they took the opportunity to unload. The price never made it past 32.50 again (on a closing basis). Knowledge of these price levels is likely to have affected this year’s selling when it hit 30.
Here’s the daily price chart for the “meme” stock known as GameStop:
GameStop daily price chart, 8 21 22.
The late March blast upward to nearly 50 matches the early December, 2021 blast upward to that level. Note the sudden increase in volume during that period. What’s interesting here is the recent attempt to match that March action: the price made it up to 48 but failed to close up there. A mid-August blast couldn’t make it past the earlier-in-the-month high. Compare this month’s volume to the March volume — it’s notably much less.
Here’s the daily chart for the meme stock known as AMC Entertainment Holdings:
AMC Entertainment Holdings daily price chart, 8 21 22.
Look at how closely this resembles the GameStop chart just above. It’s almost as if the same traders were applying the same thinking to both stocks. AMC’s late March, 2022 high of 34 is right up there at the December, 2021 high and on big volume. Then, on the next attempted blast higher — in early August, 2022 — the stock can only make it back to the 27 level on weaker volume.
Have meme stocks had it? Stay tuned.
Not investment advice. For educational purposes only.
