E Reddit Stocks Remain A Retail Favorite In April 2021; Are These On Your Watch List Right Now?

TM Editors' Note: This article discusses penny stocks and/or microcaps. Such stocks are readily manipulated; do your own careful due diligence. 

If you've followed the overall trend in the stock market this year, a lot of it centers around retail traders and new market trends. Everything from blue-chip stocks to penny stocks have become a target for the new Reddit army. Obviously, it began when stocks like GameStop (GME), Nokia (NOK), and others took flight in January thanks to retail traders flocking to social media and getting behind several stocks facing heavy short selling by Wall Street funds. While the mom-and-pop trading community was typically referred to as "dumb money," the market had no choice but to begin to take it seriously. 

Why? Simply put, these traders were driving market momentum. What have now become known as Reddit stocks, these massive short-squeezes sparked new interest in the broader markets. Fast-forward to the second quarter, and the newest cryptocurrency surge has added some extra fuel to the fire. Everything from bitcoin mining stocks like Marathon Patent Group (MARA) and Riot Blockchain (RIOT) to NFT penny stocks like Hall Of Fame Resorts (HOFV) and Cinedigm (CIDM) are gaining ground. But it doesn't just focus on high-volatility sectors like crypto. We've also seen a boost in generally lower float stocks. 

Take, for instance, MicroVision (MVIS) earlier this week or Brooklyn Immuno Therapeutics (BTX) on Tuesday. When social media rallies behind certain stocks, the trend has become very clear. In the case of MVIS and BTX, both were previously trading as penny stocks. This week both surpassed levels of $25. BTX jumped over $30 at the time of this article. Aside from news from both companies, retail traders have come accustomed to buying shares of companies like these and, more or less, expecting breakouts to ensue. While it hasn't always happened that way, there are plenty of examples of where it has. Some groups are even biting off of this trend, suggesting certain stocks/industries may be the target of social media trading when, in fact, it's the furthest from the truth. In the first quarter, silver stocks were part of the "fake-out breakout"  when some news media outlets said Redditors were targeting that sector next. Subreddits like r/WallStreetBets fired back and flooded their discussion board with posts refuting those claims. Ultimately, a short-lived move would happen in silver, but nothing to the extent of where GME, KOSS, NOK, EXPR, and countless others had experienced. 

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