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2021 Times Square New Year's Eve Celebration
2021 glasses are seen during the 2021 New Year’s Eve celebration in Times Square on December 31, 2020, in New York City (Noam Galai/Getty Images)

“Retail-driven momentum and short squeeze dynamics remain a dominant force in the market today,” says Citadel Securities

Retail has flipped from aggressive put buying to call buying, per Citadel Securities.

Luke Kawa

Retail traders are pouring cash into the market like it’s (almost) 2021, according to Citadel Securities.

Citadel retail flows

“Retail-driven momentum and short squeeze dynamics remain a dominant force in the market today,” wrote Scott Rubner, head of equity and equity derivatives strategy, who brings commentary and charts reminiscent of the zenith of speculative activity five years ago. “The net buying on our platform last week alone was in the 98th percentile of weekly flows since 2019.”

The crowd has flipped from being positioned “defensively” in early April to “a clear shift toward performance chasing,” he added.

The massive market maker also noted that retail options activity this month is tracking the highest since the October 2025 record (something that regular readers might have already been able to guess, based on our coverage of overall call volumes!).

Rubner noted that retail traders have rotated back into thematic pockets of the market like quantum computing, rare earths, and nuclear energy in addition to megacap tech, where their Magnificent 7 buying was followed by hedge funds joining the trade.

Indeed, since the S&P 500’s bottom on March 30, Oklo has soared more than 50% (price-to-sales ratio unchanged), IonQ is up nearly 80%, and USA Rare Earth has popped 85%.

He suggested their participation in these pockets “is likely to become even more visible” if the rally broadens.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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