GameStop Rally Sinks Hedge Funds

GameStop, a video game retail store has been a stock that has been sinking for a long time, they have had to close retail locations as most new games are released online. The pandemic hasn't helped as the remaining retail stores were shut down for months. Hedge funds bet the stock would sink even further and sold stock options predicting the company's stock price would continue to plummet. It didn't! Mass groups of internet people started buying up the stock. The hedge funds then had to buy back the stock at five times what they paid for it. This might bankrupt multiple hedge funds.

Wall Street has tried to step in to limit the damage, stopping trading in this stock and others like AMC movie theaters. But the rise kept going. Finally today, the exchanges limited trading in these stocks to institutional investors only. Essentially, they are only permitting "insider" trading. I hope these companies lose their billions.

Wall Street is really taken aback by this "peasant revolt" and are quite stunned. But I do have to wonder if at the bottom of this surge there is some insider who wanted to bump up GameStop so he could get out so he created this bounce. Have to think the SEC is untangling this web to find the culprit.

Short sellers lost 14 billion on Gamestop today. Can't wait to see what happens tomorrow.

The fix is in. RobinHood, supposed to be for the little guy investor is protecting their big customers like Citadel Hedge Fund by selling the shares their small customers own in GameStop. Supposedly to protect their accounts, but it has to be illegal to trade against the wishes of your clients. Think DC should investigate? Good luck with that, Biden's new Secretary of the Treasury, Janet Yelled was paid 840K to give speeches for Citadel. No one pays someone $840,000 for insight. Citadel was buying influence. Will the Leftwing press cover this issue? Or do they ice the story to protect the new Biden administration? Don't want to be the guys who create the first scandal for the new Biden team, right?

RobinHood, Prince of Thieves, has a new meaning today. Robbing their clients with forced sales.

Reminds me of the days of the SOES bandits.
Only now the big hedge fund traders no longer have to be subtle in that they know that the Rice/Harris (Biden) administration will allow their actions.

ramage wrote: Reminds me of the days of the SOES bandits.
.

WOW, what a blast from the past.

To explain my comment: SOES, = Single Order Execution System. The following citation is a concise history of this form of day trading and well worth 10-15 minutes of reading time.

www.warriortrading.com/soes-bandits/

Algorithmic trading is a process for executing orders utilizing automated and pre-programmed trading instructions to account for variables such as price, timing and volume.Oct 26, 2020


AND what impact does this process have in the total OVERVIEW? It creates illusions within the trading
world....it creates total shutdowns in it's RAPID execution