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📣 The Daily Breakdown from Bret Kenwell @Bretman, eToro's investment and Options Analyst 📣 🗓️ Tuesday’s TLDR — May 14, 2024 😵‍ GameStop leads meme surge. 🥤 Coca-Cola shares inch toward 52-week highs. 🤑 Alibaba declares a dividend. ✳️ What’s happening? ✳️ The $DJ30 winning streak came to an end, while the $SPX500 ETF — $SPY — climbed for its eighth straight daily gain. But that’s not what anyone was talking about on Monday. While it was another low-volume quiet day for the indices, there was a bit of meme-stock resurgence on Wall Street. $GME (GameStop Corp.) roared higher by 74.4% on the day, while $AMC (AMC Entertainment Holdings Inc) climbed 78.4%. These moves are continuing in Tuesday’s pre-market session. Other stocks like $TUPBQ (Tupperware Brands Corp) $GRPN (Groupon Inc) and $IRBT (iRobot Corp.) also benefited from the rally. What sparked the move? Keith Gill — known online as “Roaring Kitty” — tweeted for the first time since June 2021, sparking an eruption in these so-called meme stocks. Gill was considered a key figure in the short-squeeze stock run from late 2020 to early 2021. Is this a ridiculous catalyst? Yes. Can it last? No. There might be some sizzle and some fireworks, but these types of moves are simply not sustainable over the long term. ✳️ The setup — $KO (Coca-Cola) ✳️ Shares of Coca-Cola came within 28 cents of hitting new 52-week highs on Monday, as the beverage conglomerate continues to chug higher. 📈📉 This stock has rather quietly rallied in 18 of the last 19 sessions and is currently riding a nine-day win streak. (Chart as of the close on May 13, 2024. Source: eToro ProCharts, courtesy of TradingView). When a stock clears resistance (like Coca-Cola did with the $61 area) and puts together a rally like this, it’s in a clear uptrend. For active investors, that makes it a candidate for “buy the dips.” But patience is important in those cases, too. Perhaps KO is one to add to your watchlist to see if it pulls back to a trending moving average (like the 21-day) or if it dips back to prior resistance (like $61-ish) and finds support. ▶️ Options If we do see a dip in KO — or if bulls think the stock can continue higher — calls or call spreads could be one way to participate in a move higher. Conversely, those who believe the stock will pull back can speculate with puts or put spreads. Remember, the max risk for buying options is the premium paid. For those looking to learn more about options, consider visiting the eToro Academy. 🔗 to Academy = www.etoro.com/en-us/academy/options/ 👀 What Wall Street is watching 👀 $HD (Home Depot Inc) — Home Depot reported earnings of $3.63 a share, beating expectations of $3.59 a share. However, revenue of $36.4 billion declined 2.4% year over year and missed analysts’ estimates by $250 million. The stock enjoyed a massive rally off the Q4 lows, climbing more than 44%, but it has since been under pressure, down about 14% from the 2024 highs. Is it enough for a relief rally or will a mixed quarterly report fail to jumpstart the stock? $BABA (Alibaba-ADR) — Alibaba shares are down about 4% in pre-market trading after the firm reported a slight earnings miss, but a revenue beat as sales grew 7% year over year to $30.7 billion and topped estimates by $310 million. Alibaba also initiated an annual dividend of $1.00 a share and declared a special one-time cash dividend of 66 cents a share. 🔎 📚 Are your investments in line with today's news? Check your portfolio on eToro and eToro Options to make sure you aren't missing any opportunities. Disclaimer: Please note that due to market volatility, some of the prices may have already been reached and scenarios played out. Content, research, tools, and stock symbols displayed are for educational purposes only and do not imply a recommendation or solicitation to engage in any specific investment strategy. All investments involve risk, losses may exceed the amount of principal invested, and past performance does not guarantee future results. Options involve risk and are not suitable for all investors. Please review the Characteristics and Risks of Standardized Options (etoro.tw/3Dr98GK) prior to engaging in options trading.