Record high markets going into taper expectations, meme stocks steady incline

Yahoo Finance's Jared Blikre joins the Live Show to highlight record highs across most markets following the stress around the Fed's taper announcement, tech and meme stock investing trends continue to rise.

Video transcript

- Jared, what are you watching this morning?

JARED BLIKRE: It's not what I'm watching. It's what I'm listening to. A little bit of a deafening bell there, this [? back ?] bell going off behind me. And actually, quite a bit of activity on the floor, a little bit more than I've seen in a while.

It is the day after the Fed, and my biggest takeaway is thank goodness we don't have to say [? taper ?] tantrum anymore. I think that's effectively out the window. But everybody's looking ahead to what's going to happen until the end of the year. Specifically, we have a mixed market today, but we're coming off of record highs for all of the majors, also the Russell 2000, Dow transports, everything kind of looking towards a very-- pointing towards a very bullish picture.

In particular, I'm looking at the VIX now trading with a 14 handle. It looks like the VIX has settled into a new trading range, and 18 to 20 probably going to be the ceiling here for a little bit. Now, it doesn't mean that we can't have spikes above that, but when it's trading in a range, we'll probably see some resistance at-- at these very low levels.

And what does it say about the market overall? I think that the bullish factors point toward an end of the year rally. We could have some hiccups. I'm at the risk of repeating myself here, but I do want to get to some news that affects the exchanges.

Now, CME just entered into a pact with Google. Google is going to invest $1 billion in their equity, and CME is going to put all of their services on the cloud eventually. That includes clearing and as well as their exchange services. So I think it's indicative of where the market is going.

You know, you take a look at the infrastructure that we have for the New York Stock Exchange, for instance-- for instance, for the NASDAQ. A lot of these-- a lot of the trading-- most of the trading is conducted offsite and now migrating to the cloud, I think, speaks as to the dominance of these tech giants. So something-- I think it's the beginning of a trend, and I'd look for other exchanges to follow suit eventually.

- Jared, I know one other area of the market you're watching closely is the meme stocks. Of course, we had that big move higher in Bed, Bath, and Beyond shares yesterday. A little bit less of a market move this morning, but what are some of the details there?

JARED BLIKRE: Yeah. I think we've seen a meme stock-- I'm going to call this 4.0, because we've seen at least three iterations for most of the meme stocks earlier in the year. So January was a big one, late January, early February. June was another one. And it depends on which stocks you look at.

But if you take a look at, for instance, AMC, GameStop, it's clear where the spikes have been. And so I think what we're seeing with Bed, Bath-- Bed, Bath, and Beyond, you get some incremental news, you know? They're in the midst of a turnaround strategy. [? Sasse's ?] been all over it. It doesn't take much to goose a meme stock. And so with momentum on their side, I think we're going to see more of this this week.

And when the hot money fades, it's going to go into some other asset, maybe Bitcoin. There's an interesting correlation I have noticed, and it's not perfect. But when there's a lot of money going into meme stocks, the crypto doesn't-- doesn't have as many hot money flows itself.