The Investopedia Express with Caleb Silver Low-Riding Through Short Squeezes to Higher Highs
Jul 28, 2025
Cameron Dawson, Chief Investment Officer of NewEdge Wealth, dives into the whirlwind of today’s markets, comparing the resurgence of meme stocks to the vibes of 2021. He unpacks the tug-of-war between value and meme stocks, urging strategic caution amidst this frenzy. The conversation also covers upcoming interest rate decisions by the Fed and key corporate earnings that could shape the economic landscape. Plus, Dawson explores the risks of low volatility and the complexities of bond yields, offering insights for savvy investors.
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Broad Market Rally with Cyclicals
- Stocks are rallying with strong breadth beyond just mega cap tech, including cyclical sectors like industrials and financials.
- This cross-sector participation indicates a healthy and broad economic recovery trend.
Market Breadth Shows Strength and Limits
- About 74% of S&P 500 stocks are above their 50-day average, showing broad participation.
- However, new 52-week highs are limited, suggesting caution despite continued upward movement.
Low Volatility Breeds Risky Complacency
- Low market volatility fosters investor complacency and increased leverage, setting up conditions for potential sharp corrections.
- High call option volumes versus low put buying indicate overconfidence in continued market gains.
