Digital Brands (NASDAQ:DBGI) stock is running higher on Thursday as Jim Cramer calls it out as the new pump and dump of Reddit traders.
According to Cramer, the “primates”, in reference to Reddit traders calling themselves “apes”, are pushing shares of DBGI stock higher before an eventual fall.
So why is Cramer so sure about this? Heavy trading volume on no news is the first sign that something’s up. In the case of DBGI stock, some 11 million shares have changed hands as compared to the daily average trading volume of about 3.6 million shares.
Of course, another easy way to track stocks being pumped by meme traders is to search Reddit threads. There’s surprisingly little discussion about the stock over on Reddit, but we are seeing some chatter on Twitter (NYSE:TWTR), which is also a hot spot for retail traders.
Let’s take a look at what those traders are saying about DBGI stock today.
DBGI Stock Twitter Talk
$DBGI $2.67. Looks like we might be filling this mornings gap up. Let’s get back up to $3, dang it!
— Pinky Trader (@PinkyTrader) September 23, 2021
The artificial “squeeze” was too predictable on $DBGI this morning. Those guys are all down so bad on that stock… quick scalp. Always sell into their tweets volume and wait
— Jesse (@SchaferTrading) September 23, 2021
$DBGI if this breaks $3.30 later today, I see this going to $5+ atleast
Those dips got loaded heavy at $2.80
— BullishTrade (@Bullish_Trades) September 23, 2021
$DBGI – Been scrapping the bottom and oversold on RSI for quite a while….Up 20% now looking like a nice bounce…FINALLY!
— Mike David (@MikeDav14405483) September 23, 2021
— Dante (@Dante40024685) September 23, 2021
While it might seem tempting to jump into the DBGI stock rally this morning, traders will want to do so with caution. Digital Brands is the pure definition of a penny stock with shares trading in the $2 range, and a market cap of only $35.61 million.
That means the stock is easy to manipulate for traders looking for quick profits. While there is money to be made by following these volume traders, there’s no doubt a dump is coming that could leave you with more red than green in your portfolio.
DBGI stock was up 9.9% as of Thursday morning.
Let’s take a look at other recent stock market stories for today!
There’s plenty to discuss on Thursday as the stock market continues to be busy. That includes a big deal for Medirom Healthcare Technologies (NASDAQ:MRM), this morning’s pre-market stock movers, and more. You can get all those details at the following links!
More Stock Market News for Thursday
- MRM Stock: The Hair Salon Deal That has Holistic Healthcare Play Medirom All Lathered Up Today
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
- TMC Stock: What Is Going on With The Metals Company Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks. Read More: Penny Stocks — How to Profit Without Getting Scammed