Occasionally, hot stocks can get that much hotter in a move that can only be described as a “melt-up.” Such extreme share price action can be like the reverse of a stock meltdown, whereby a stock crashes rapidly.
Indeed, stock melt-ups and meltdowns tend to catch many off-guard. And while such moves may be rapid to reverse, investors shouldn’t be inclined to overreact either way. The great Nvidia (NASDAQ:NVDA) stock melt-up of 2022-24 is a prime example of why it’s a terrible idea to go against the grain with a short position on some of the market’s fastest-moving melt-up names.
This piece will examine three stocks that have shown significant momentum in recent months. Though the chance of correction has likely increased, I find the names to be a must-watch for the second half.
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