X Financial (NYSE: XYF) seems to be taking part in the celebrations of meme stock status. Certainly there's nothing else much that would explain the 115% rise premarket this morning. The oddity is really that it's several days late in this. For China financial stocks was so last week. We're on to China metals stocks this one. Or at least that seems to be where the trading excitement is.
Last week saw Top Financial soar and that's coming resoundingly back down to Earth right now. Down 40% premarket this morning. But that one slightly interesting China financial stock jumped meant that, of course, so did the others like MEGL. Even the AMTD Twins tried a twitch. Those price movements really were just because they were price movements. There was no news from any of the companies, it was simply a trading frenzy. Or, as we say these days, meme stock status.
X Financial stock price from NASDAQ
The thing about X Financial is that it is another of those China financial stocks and interest seems to have switched to it. Really, that's just all there is here. Some folk buying because they think it can go up therefore it does go up. And when everyone starts to think those positions will be reversed and it will go right back own again. Simply because there is no objective validation of the current price level.
The only really interesting thing here seems to be that the speculators haven't quite got the message yet. For the market has moved on, the new sexy sector is China metals companies like Huadi and Hongli.This is a fairly important point of course. There's no objective reason for any of these stock price moves, they are entirely and purely meme stock nonsense. But if anyone's going to trade meme stock nonsense then obviously it's got to be the right stock in the right sector. If the speculation has moved on from financials to metals then X Financial is just so passe, isn't it?
