Beware of FOMO

A little bit of buying pressure can push some stocks a long way. [Jeff Clark's Market Minute]( Beware of FOMO By Jeff Clark, editor, Market Minute “There’s only one problem with your comparison to early 2022,” a trader friend said to me yesterday. “Back then, it was the dog sh*t meme stocks that were rocketing higher. Today, it’s big-cap companies with high growth rates in earnings and revenue.” My friend had read [Tuesday’s Market Minute essay](. And he was eager to point out that since we weren’t seeing wild, speculative activity in dog sh*t stocks, the market could still press a lot higher. Shares Volume Skyrockets With that argument in mind, please take a look at this chart… [(Click here to expand image)]( This is a chart of the action in MicroCloud Hologram (HOLO), a China-based holographic technology company. The stock started this week trading at $1.80 per share. Yesterday, it opened at $40. That’s a 1,900% gain. Just as impressive is the volume – which is typically less than 200,000 shares per day – rocketed to nearly 200 million shares traded on Wednesday. What was the news that caused the spike? Did the company discover a cure for cancer? Did it create a time-traveling machine? Surely, there must have been some breakthrough announcement that caused this move. Recommended Link [Sell every Stock except ONE]( [image]( Even when markets are down... Jeff Clark couldn't care less because he ignores almost every stock in the market except ONE. He lives financially free trading this One Stock Once per month… [Ticker Revealed.]( -- FOMO Is a Powerful Motivator Here is the only headline for HOLO this week… “MicroCloud Hologram Plans to Join the Communications Industry Association” That must be one heck of an association if merely planning to join it creates a 1900% gain in a stock. Of course, that headline has nothing to do with the rise in HOLO shares. This was a microcap stock. At $1.80 per share, and with less than one million shares outstanding, the entire company was valued at less than $2 million on Monday. A little bit of buying pressure can push these types of stocks a long way. All it takes is a posting, or two or three, in a financial chat room (or two or three). Then momentum kicks in. And then FOMO takes over. FOMO (fear of missing out) is a powerful motivator. As much as people might fear losing money, they are far more afraid of not making money if everybody else is. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. That’s why people paid crazy prices for real estate back in 2006. That’s why internet stocks reached bubble valuations in 2000. That’s why the Dutch put their entire life savings into one tulip bulb back in 1635. FOMO is why meme stocks were all the rage in 2021. And it’s why HOLO blasted higher this week. As quickly as stocks can go up when FOMO kicks into gear, they can come down twice as fast. Just ask anyone who rushed to buy GameStop (GME) three years ago. My trader friend is right, though. This time, FOMO seems to be concentrated in a small group of big-cap, well-known companies. Somehow, though, I don’t think that makes the situation any more acceptable or any less concerning. Best regards & good trading, [Signature] Jeff Clark Editor, Market Minute IN CASE YOU MISSED IT… [Team Who Delivered 84X Peak Gain on Nvidia Declares: “AI 1.0 is Finished… Buy These 2.0 Darlings Now”]( In late-2022, AI struck the public consciousness with the force of a 50-megaton bomb. (Thank ChatGPT for that.) But at a total market value of just $20 Billion — these “AI 1.0” tools are economically tiny. That’s why billionaires like Elon Musk, Warren Buffett & Jeff Bezos are moving their own capital into [a new corner of the AI market...]( One that’s already moved light years beyond ChatGPT. NASDAQ analysts estimate it’s worth as much as $200 trillion According to our #1 AI market analyst… it could soon ignite a 104,000% tech boom. He’s unearthed 3 stocks that could 10X your money by 2025. [But you MUST move by April 26 (click here for the full video report).]( [image]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. 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