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WISH Stock News: Hey ContextLogic Investors, Mark Your Calendars for June 24

Today is yet another volatile day in the markets, with individual stocks bouncing around with no real rhyme or reason. Fortunately for investors in ContextLogic (NASDAQ:WISH), these moves have been to the upside. The impressive 12% rise i…

Today is yet another volatile day in the markets, with individual stocks bouncing around with no real rhyme or reason. Fortunately for investors in ContextLogic (NASDAQ:WISH), these moves have been to the upside. The impressive 12% rise in WISH stock today is attributable to some quarterly rebalancing done by the indexes.

The Russell 3000 index just announced its reconstitution, in which certain stocks are dropped and others are added. ContextLogic was among the list of companies added to this exchange.

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This reconstitution is set to take place on June 24. Essentially, what this means is exchange-traded funds (ETFs) that track the Russell 3000 will be forced to buy WISH stock and exit positions in companies being removed from the exchange. With more liquidity and buying pressure typically comes expectations that prices will rise over the near-term. We often see this scenario play out in the crypto world when exchanges list various tokens.

With that said, let’s dive into what investors can expect heading into this June 24 deadline.

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Can WISH Stock Continue to Rally Into June 24?

Like any near-term catalyst, investors are likely to play momentum until it ceases to exist. Given that we’re currently in the first trading session since the announcement, it’s likely most of the anticipation of the addition will be reflected today. Markets are forward-looking, meaning it’s likely this news was priced into WISH stock minutes after being announced.

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That said, this is a meaningful catalyst for investors in this mobile e-commerce company. ContextLogic has been hit very hard in the current macro environment. With little in the way of positive catalysts, investors have seemingly thrown in the towel on this company while de-risking their portfolios.

The addition of WISH stock to the Russell 3000 could add some validity to its stature in the market. For bulls on this company, that’s a good thing.

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That said, I remain on the sidelines with this unprofitable company, simply because I think the waters are going to continue to be choppy for some time. Perhaps this is a good entry point for those looking to buy the dip. However, it’s probably too soon to tell whether the selling pressure we’ve seen has begun to abate or not.

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Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Chris MacDonald 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.

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