US indices reset their all-time highs in August, with investors responding favourably to the Federal Reserve’s clarification that interest rates are not likely to lift any time soon, even if it tapers its QE program later this year. 

Tech stocks and biotech shares were the best-performers, in turn driving a 4% gain for the Nasdaq, and a 2.9% increase for the S&P 500, while the Dow Jones edged higher by just 1.2%.

That trend followed through to the SelfWealth community, as evidenced by last month’s popular shares.

 

Which US shares were the most held?

After a buoyant month of trading, Gamestop (NYSE: GME) returned to the top of the list for the most-held US share across the SelfWealth community, overtaking Tesla (NASDAQ: TSLA) in the process. On the back of the rise, and the significant liquidity attached to the company’s shares, GME has been touted by some as a potential candidate for inclusion in the S&P 500 when the next quarterly rebalance takes place later this month. This may be something spurring traders to back the stock, even though it hasn’t met profitability thresholds for the key index.

Among other high-profile movers, Nvidia (NASDAQ: NVDA) moved up the charts into 10th place as the most-held US stock among SelfWealth members. Shares in NVDA had a tremendous month, advancing 14.8%. Despite at one stage looking as though the share price might falter, Nvidia’s earnings beat proved a catalyst for the stock to resume its rally. Semiconductor shortages worldwide are fresh in the minds of investors, and the company’s results suggest it is taking full advantage of the situation, boasting soaring graphics card sales.

Unsurprisingly, software and data names like Microsoft (NASDAQ: MSFT) and Palantir (NYSE: PLTR) remain hot property, with the latter enjoying a solid earnings season thanks to strong revenue growth. The company unveiled a 49% increase in revenue compared with last year, while also providing a positive guidance for the near-to-mid-term. Salesforce (NYSE: CRM) also joined the fold as enthusiasm for tech stocks remains an ongoing theme.

Elsewhere, well-known investor Michael Burry might be betting against the ARK Innovation ETF (NYSE: ARKK), but SelfWealth members have increased their exposure to the fund, even as growth has moderated in recent times. Two of the fund manager’s other ETFs, the ARK Genomic Revolution (NYSE: ARKG) and ARK Fintech Innovation (NYSE: ARKF), both remain popular choices, albeit saw fund outflows last month across the SelfWealth community. 

 

US Stock Company
1 GME GameStop
2 TSLA Tesla
3 AAPL Apple
4 AMZN Amazon
5 MSFT Microsoft
6 AMC AMC Entertainment
7 ARKK ARK Innovation ETF
8 PLTR Palantir
9 BABA Alibaba
10 NVDA Nvidia
11 GOOGL Alphabet Class A
12 ARKG ARK Genomic Revolution ETF
13 NIO Nio
14 PYPL PayPal
15 QQQ Invesco QQQ Trust Series 1
16 AMD Advanced Micro Devices
17 BRK.B Berkshire Hathaway
18 CRM Salesforce.com
19 ARKF Ark Fintech Innovation ETF
20 DIS Disney

 

US share trading activity

While all the familiar Reddit and tech names remained ever-present among the most-traded shares last month, a number of other stocks made an appearance on the back of dramatic movements in the market. 

Texas-based lithium-ion battery manufacturer Microvast Holdings (NASDAQ: MVST) soared up the list, featuring as the second-most traded stock by value, and the 12th most-traded US stock by orders filled. The company was at one stage the most-discussed stock on the popular WallStreetBets forum on Reddit, driven by a ‘favourable’ revenue-to-market cap comparison against fellow EV battery developer Quantumscape (NYSE: QS). Amid volatile trading, Shares in MVST gained as much as 50% in August before ending the month lower, albeit they have since marched higher once again.

Elsewhere, Nasdaq heavyweights Advanced Micro Devices (NASDAQ: AMD) and Moderna (NASDAQ: MRNA) both gained notoriety throughout the month on the back of favourable industry developments. AMD continues to benefit from unprecedented demand for semiconductors, while Moderna’s vaccine development has brought it a guaranteed pipeline of revenue that only looks set to increase as booster shots appear likely to be a part of vaccination roll-outs.

Another name seeing trading interest roar to life in August was BIT Mining (NYSE: BTCM). The cryptocurrency stock is riding the wave of a rally in the price of Bitcoin and Ethereum, and also announced a shift in its bitcoin mining operations from China to Kazakhstan given regulatory issues in its home market. A number of retail investors have also taken note of the stock’s low shares on issue, hoping for a short squeeze. 

Market chatter was also the driving force in trading activity for a number of other stocks like software business Support.com (NASDAQ: SPRT), which was targeted due to the high level of short interest in the stock, e-commerce platform ContextLogic Inc. (NASDAQ: WISH), and retail broker Robinhood (NASDAQ: HOOD), which brought up its first month of trading as a public company.

 

Top 20 stocks traded by value
Code  Security Buy-sell Ratio
1 AMC AMC Entertainment 49.3%
2 MVST Microvast Holdings 50.5%
3 GME GameStop 54.6%
4 AMD Advanced Micro Devices 52.9%
5 BTCM BIT Mining 51.9%
6 MRNA Moderna 52.6%
7 NIO Nio 50.5%
8 TSLA Tesla 70.3%
9 BABA Alibaba 79.4%
10 SPRT Support.com 50.1%
11 AAPL Apple 72.9%
12 WISH ContextLogic 49.7%
13 NVDA NVidia 66.8%
14 AMZN Amazon 75.3%
15 HOOD Robinhood 56.4%
16 UBER Uber 4.1%
17 PLTR Palantir 53.7%
18 QQQ Invesco QQQ Trust Series 1 68.8%
19 SAVA Cassava Sciences 48.2%
20 QS Quantumscape Corp 50.8%

 

That’s all for this Trade Trends report, stay tuned for the next edition this time next month!

 

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