The Bro Trade Is Back: Micron Momentum and Maximum Degeneracy

Retail investors are driving massive momentum in tech-heavy mega-cap stocks through aggressive call buying, creating a market environment similar to the 2021 meme-stock era and the 1999 tech bubble.

Key Takeaways

• 1.Retail call option activity has surged to levels not seen since the 2021 'meme stock' era, with over 52% of retail opening activity in mega-cap tech consisting of call buying.
• 2.The S&P 500 Momentum index is experiencing an unprecedented rally, up 30.5% in six weeks, the largest move in its live and back-tested history dating to 1972.
• 3.Current market concentration mirrors the Dot-com bubble (1998-2000), where the S&P 500 reaches record highs while fewer than 60% of stocks trade above their 50- and 200-day moving averages.

Table of Contents

• Smashing the call button
• Retail footprints
• Retail call buying near 2021 extremes
• More on the small Bros
• Momentum rally
• The only time in history
• Micron
• Tesla
• NVDA
• ARKK
• Some go levered short
• Valuation lessons

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial