Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is joined by Zacks Senior Strategist, Kevin Cook, to talk about the red-hot stock market.

2021 is only 4 weeks old but stocks continued to rally to start the year, even as volatility related to the Wall Street Bets/Reddit short-squeeze trades put the jitters into the markets in January.

But many of those trades are now mostly complete.

Short-Squeeze Trades Cool Off

GameStop (GME - Free Report), has, for the time being, stopped soaring to new highs and, instead, is now in a big sell-off.

Billions in market cap has been wiped away in just a few days.

AMC Entertainment (AMC - Free Report) is another that has reversed course. It traded as high as $20.36 during the short-squeeze but has retreated back under $10.

Chasing the Hot Stocks

But what if you had jumped into AMC when it was at $15? What now?

Some new traders did just that and are facing large losses.

There are always risks with any investment, especially the short-term trade.

But what about those stocks that aren’t in the crosshairs of the WSB/Reddit gang, but have just been soaring anyway?

Pandemic Stock Plays Heat Up

Chipotle (CMG - Free Report) continues to dominate the fast-casual restaurant scene even during the pandemic. Nearly 50% of its revenue is now coming from the digital channel thanks to its great ordering app, delivery, and pick-up options.

But shares are trading at all-time highs and sport a forward P/E of 69.

Should investors be buying on the high?

Novavax (NVAX - Free Report) is another pandemic beneficiary as it’s developed a coronavirus vaccine that it hopes to roll out later this year.

Shares are up 137% so far in 2021.

Is it too hot to get in now?

And then there are some stocks that haven’t been doing much over the last several months, including big semiconductor giant NVIDIA (NVDA - Free Report).

Should you wait for a pullback or get in before it eventually goes higher?

There’s a lot of investors “chasing” the hot stocks right now.