Where It Stops, Nobody Knows

at

GameStop share price as of 4.30pm.

This afternoon.

Further to a Wall Street backlash against trading shares in GameStop, the US video game retailer, whose share value climbed more than 900% since members of the Reddit community WallStreetBets banded together in an effort to push the stock higher…

Via CNBC…

…At some point, the thinking goes, shares of GameStop will stop climbing, either because most of the shorts have given up and are no longer forced into buying the stock to cover losing positions or because brokers or U.S. market regulators intervene.

At that point, human nature kicks in: Retail investors will watch as their paper profits evaporate, and the natural impulse will be to sell, according to the executives, who spoke on condition of anonymity to speak frankly. Latecomers to the party will sell in fear, contributing to a stampede for the exits and a drop in the shares, they added. The same forces that helped the stock catapult higher will contribute to a rapid decline.

Still, there is no telling when a true unwinding will occur or how long it will take. The shares were rebounding sharply in Friday’s premarket, up another 80% to $332 a share, after Robinhood reversed course and said it would allow limited purchases of the stock…

.with millions of Redditors wielding free trading apps, full saving accounts and not much else to do, it’s possible that there is a new playbook for fast gains in the stock market.

This is how Wall Street thinks the Reddit-fueled GameStop trade unravels (CNBC)

Yesterday: Gaming A Rigged System

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11 thoughts on “Where It Stops, Nobody Knows

      1. millie bobby brownie

        Rosette, sorry to be peppering you with questions, but I read today on the guardian about how the Robinhood, Trading 212 etc had stopped trades on Gamestop and a few others (Hertz, Nokia, AMC) as a result of the chaos of past number of days. Why would they have done that, do you know? Is it protect the hedge funds? And if so, how can it be legal for them to interfere in such a way with the free market?

        Incidentally, I see also that Robinhood has since secured $1bn in additional funding and that trades have once again been opened on Gamestop, sending the value up again. Even with my patchy understanding of how all this works, I must admit to being fascinated by what’s happening.

  1. eoin

    They are eyeballing the most shorted market in global financial history…the silver market, next. If they are smart, they’ll avoid SLV and the ETFs and squeeze the physical supply. It’ll only require $1blnUS. But if they do it’ll be a world changing event. For example there’s a huge amount of silver used in manufacturing explosive ordinance. So war becomes a lot more expensive to wage with a huge silver price. It was their silver short position that killed Bear Sterns in 2008. JP Morgan inherited the short in a deal with the US government. Gotta keep them prices down. If you want to get in on the action…buy some physical silver. Coins, jewelry….whatever you can get your hands on. Silver is the only asset in existence that was worth more in 1980 than it is today. How’s that for shorting?

  2. Scundered

    There will be a load of people now moving their money into crypto, I’d prefer a long term hold on Bitcoin and a few Alts than to play the regular stock market, volatile as hell but look at the long term. With institutional money now pouring in that will calm it down.

    And to think Apple and Google were deleting any bad reviews of robin hood app, equally reprehensible, people have a right to rate it badly if they’ve been locked out of trading

  3. MaryLou's ArmaLite

    The guy who posted the Due Diligence that started it all posted his positions on Reddit after market close on Friday.

    $46,000,000

    And he ain’t selling. Diamond Hands

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