EDITOR'S NOTE

There are lots of big earnings reports in the week ahead, with Amazon and Alphabet topping the list. There is also the important January employment report, but investors may continue to be most interested in the GameStop phenomenon.

In the past week, the wild trading in the stock brought to light the battle between big hedge fund investors who short stocks and the buying in the same names by a whole bunch of retail traders who helped create a squeeze.

(See here for a full recap and explanation of the GameStop drama.)

The so-called short squeeze occurs when the short investors, who were hoping for a lower price, have to buy the stock to cover their short position as the stock price rises. This in theory makes for more gains. GameStop stock saw a meteoric 400% rise in the past week, after big moves in both directions. Other stocks are caught in the same trading war, but none were quite as dramatic.

(See here for what it will take to keep the GameStop rally going.)

Investors will also be carefully watching the action in the S&P 500 which fell below its 50-day moving average on Friday. The level is seen as a ‘line in the sand’ and a level where the market will either pivot higher or break lower with more selling.

THE WEEK AHEAD

MICHAEL SANTOLI'S MARKET COLUMN

ACTIVIST SPOTLIGHT

YOUR WEEKEND BRIEFING