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Futures Dump As Meme Stock Mania Goes Into Overdrive

Futures were already looking a shaky when they took a hit lower after news that Russia would cut the dollar from its sovereign wealth fund, shifting to euros, yuan and gold instead in an attempt to reduce exposure to U.S. assets amid threats of sanctions.  . They then slumped even more on the perfectly predictable news that AMC would offer 11.55mm shares in an At The Market offering, with the Emini sliding 0.6% to 4,175 after trading around 4,210 for much of the overnight session. Nasdaq futures were hit even harder, dropping 1% even though the broader risk-off mood did not help TSY yields which rose modestly, while the dollar barely dipped from its upward trajectory even as Bitcoin rose again, approaching $40,000.

Despite the hit to AMC following news of the equity offering, the stock still remains green on the day after soaring 95% the previous day, and although we saw a tremendous meme stock rally, it is now fading fast.

After our post that Workhorse was the most shorted Russell 2000 name, the company soared earlier in premarket trading, rising as much as 30%, the gain has now been cut to just 10%; another meme favorite stock BlackBerry was up 6.2%. Other meme stocks including Express -0.2%, Koss -12%, Bed Bath & Beyond -13% and PetMed Express -11% fell in premarket after climbing Wednesday. Some pot stocks also rise, including Tilray +6.8%, Sundial Growers +13% and Canopy Growth +0.8%.

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