Though I wouldn't look to punch a ticket at these levels, I certainly wouldn't dare initiate a short position. Indeed, if the meme frenzy of 2021 taught us anything, it's that betting against even a seemingly sure thing is a dangerous proposition that might just lead to uncapped losses. Between going long and going short, I'd much rather go for the former any day of the week.
Here we go again. Meme stock traders, those fickle thrill-seekers of the market, have found a new love interest after ditching their summer fling with Opendoor Technologies ( NASDAQ:OPEN ). The spark was hedge fund manager Eric Jackson of EMJ CapitaBetter Home & Finance Holding ( l anointing NASDAQ:BETR ) as "the Shopify of mortgages." Jackson's declaration lit a fire under BETR stock, sending shares surging 47% on Monday and rallying another 33% higher in noontime trading today.
The stocks are usually a target of short sellers or those who bet against the stock. With the rising momentum, other investors join and start buying to boost the price, which prompts others betting against the stock to buy more to cover losses.
