The stock market is experiencing some extreme price movements, particularly in technology companies like Alphabet, previously known as Google. These price swings are reminiscent of the volatility seen in cryptocurrencies like Bitcoin and Ethereum. While it may be exciting for shareholders to see prices skyrocket, experienced investors are wary of the potential downside of such speculative trading activity. The charts of well-known companies on the Nasdaq and NYSE are displaying unusual behavior, with significant price increases and decreases in short periods.
Alphabet, for example, has seen a massive surge in its stock price, skipping levels and breaking out to new highs on high volume. This kind of speculative trading is a departure from the normal buying and selling patterns seen in traditional markets. Similarly, Resmed, a NYSE-listed equity, experienced a nearly 19% increase in its stock price in a single session. The unusual price movements in these companies suggest a level of volatility and unpredictability that may not bode well for investors in the long run.
On the other hand, Intel has seen a sharp decline in its stock price, with a significant drop below previous lows and a potential crossover of moving averages on the horizon. This kind of price action indicates bearish sentiment and significant selling pressure in the market. In contrast, Immunity Bio, a hot stock in the current market environment, saw a massive increase in its stock price, driven by speculative money looking for opportunities in the biotech sector.
Snap Inc., another volatile stock, experienced a gap down in February that was partially filled by a significant gap up in price on Friday. The stock’s price movements resemble a roller coaster ride, with steep climbs and drops that test investors’ resolve. Overall, the current market conditions are marked by extreme price volatility, with some stocks exhibiting dramatic price movements that may not be sustainable in the long term. Investors are advised to exercise caution and closely monitor price charts for potential opportunities and risks in the market.