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Dow Jones Futures: AMC Keeps Running As Meme Stocks Rule Market Rally, But Here's The Winning Long-Term Strategy

Posted Date: June 03 2021
Dow Jones futures fell modestly Thursday morning, along with S&P 500 futures and Nasdaq futures. The stock market rally closed with slim gains on Wednesday, continuing the recent trend of minimal moves on the major indexes.
 
Wednesday was all about AMC Entertainment (AMC) and other meme stocks such as GameStop (GME), BlackBerry (BB), Bed Bath & Beyond (BBBY) and Koss Corp. (KOSS). AMC stock nearly doubled. GME stock, BB stock, BBBY stock and Koss all were up sharply.
 
AMC stock jumped Thursday morning with other meme stocks also active.
 
Buying meme stocks or former leaders trying to recover can be seductive, but it's not the path to long-term stock market success.
 
Meanwhile, Tesla (TSLA) tested key support Wednesday on a variety of negative headlines, while Digital Turbine (APPS) reversed lower from key resistance following earnings. Both highlight the risks of buying old winners when they are in the early stages of a possible rebound from a sharp sell-off.
 
Tesla stock fell early Thursday, suggesting another move below its 200-day line.

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