Update: Robinhood app delists GameStop and AMC stocks from the app. Further demonstrating the fairness of the system. And living up to their Bio. Democratizing investing for everyone.
It is extremely interesting to see how the market is being manipulated. By both sides. Just as it’s crazy to see a stock up 100% pre-market from Redditors buying call options. As it is to see it immediately drop 30% aftermarket. No doubt from hedge-funds shorting it. And that is exactly what happened yesterday. Both $GME GameStop stock and $AMC skyrocketed. Stratosrocketed! Appreciating by 100% and 300% respectfully. Unbelievable. No one, including themselves, would have guessed that some Redditions are winning. Over Wall Street no less.
WallStreetBets have a point.
Nasdaq. A publicly-traded company. Announced they will halt trading for AMC and GameStop. Because of social media chatter. As they put it. Which is exactly the point. They are condescending. Chatter means talking without substance. Another reason why retail investors are so fed up with the whole system. Despite being halted several times AMC had a volume of 1.25 billion shares being traded. Which is unheard of for a relatively small company. Then Discord announced they are banning r/WallStreetBets servers. And the forum itself was made private. Even the white house said they are monitoring the situation. But why?
Pre-market and expectations.
They will try to scare them off. But at the end of the day buying stocks is legal. They love these stocks. And they are buying. Why should Wall Street decide which company succeeds or fails? The market decides. The market is deciding. r/WallStreetbets has been made public again. And is growing. Adding 2.3 million members since Saturday. Banning the subreddit will only worsen the situation. They cannot silence 4.3 million voices. Even if the subreddit is closed. There are plenty of other ways to communicate. GameStop and AMC stocks have traced a clear trend going up. And by considering both stocks are up pre-market today. We can comfortably conclude that the panic in many Wall Street board rooms will continue. Unless hedge-funds sell all of their positions to keep the shorting. Unlikely. Less painful is to just close the short position. Which is the ultimate WallStreetBets goal of this whole saga.
We can add First Majestic Silver Corp. A heavily shorted stock of course. Up +40% per market and likely to see a doubling. If we are conservative. Be careful everyone. It’s a dangerous game. Played by powerful people.
Read the story on GameStop stock here.