We’ve been fooled by it before, and given how things are going this may well be untrue by the time it appears, but it does seem that the air is starting to escape from the GameStop bubble. GME is down by about a quarter today, and after some wild swings this morning has been on a slow but steady decline for the last few hours. So have r/WallStreetBets’ degenerates and their allies and imitators taken their winnings and losings and gone back to doing whatever, exactly, it was that they were doing three weeks ago? Not quite….
Silver futures were up more than 9% by midday Monday, and many news outlets linked the sharp uptick to the Reddit page r/wallstreetbets that has been shaking up Wall Street over the past week…. The hashtag #silversqueeze was trending on Twitter Monday morning…. Shares for AMC Theaters, another favorite of r/wallstreetbets, climbed nearly 6%.
Digital-currency exchange website Coinbase Global Inc. said it was investigating an outage Friday that prevented customers from trading on its web and mobile apps. Another exchange, Bittrex Global GmbH, said an increase in traffic created technical problems on its platform…. Robinhood Markets Inc., which is under fire for suspending trading of popular stocks, also curbed activity in its cryptocurrency platform…. Some digital-currency proponents think investors unable to trade their favorite stocks moved to crypto instead.
Day traders are even putting money into SPACs before they have revealed what company they are buying…. “I would just have a bad case of FOMO if I wasn’t in SPACs,” said Marco Prieto, a 23-year-old real-estate agent living in Tucson, Ariz., referring to the fear of missing out that is driving many individuals to put money into markets…. In another sign blank-check firms are now frequently traded by individuals, several SPACs and companies that have merged with them recently joined GameStop and AMC on a list of stocks that had position limits on Robinhood Markets Inc., a popular brokerage for day traders.
None of this is sitting well with those currently aboard the sputtering rocket called GameStop.
Some of the top posts on the Reddit forum, however, said that this was false and urged members of the community not to buy silver but to focus on stocks such as GameStock and AMC.
And what of the Redditor most credited with the events of the last week? He’s not getting judgmental. At least not on the record with a Wall Street Journal reporter.
“This story is so much bigger than me,” [Keith] Gill told The Wall Street Journal in his first interview since the unboxing this week of a volatile new stock-market game. “I support these retail investors, their ability to make a statement….”
“I’m not out for anybody,” Mr. Gill said. “Roaring Kitty was an educational channel where I was showcasing my investment philosophy.”
This is perhaps news to Steve Cohen and Andrew Left. And also maybe to Robinhood, which is definitely being gone after by at least some of Gill’s acolytes (although not Gill himself; as any peruser of r/WSB can tell you, Gill himself is an E*Trade man). And also maybe by the SEC, too.
Securities regulators said Friday they plan to closely review the actions of some brokerage firms that restricted investors’ ability to trade volatile stocks such as GameStop Corp. this week.
So it looks like one day soon, Vlad Tenev is going to have some questions to answer from Gary Gensler (and Elizabeth Warren and AOC and Ted Cruz and Ken Paxton and an as-yet-undetermined number of plaintiffs’ attorneys). But first, he’s got to prostrate himself before he who really matters on Wall Street. That is, just as soon as said power finishes sparking another trading frenzy on Twitter.
Billionaire Elon Musk said on Monday bitcoin was “on the verge” of being more widely accepted among investors as he expressed his support for the cryptocurrency in a chat on social media app Clubhouse that drew thousands of listeners.
The comments followed his use of the “#bitcoin” tag on his Twitter profile on Friday, which pushed the crytocurrency up 14%.... “I am a supporter of bitcoin,” he said.
Anyway, on to the matter at hand.
Wild moves in the value of those stocks and options prompted clearinghouses that process and settle trades to demand increased cash collateral to insulate themselves from possible losses.
“The request was around $3 billion, which is, you know, about an order of magnitude more than what it typically is,” Robinhood Chief Executive Vlad Tenev said. He spoke Sunday night in an interview alongside Tesla boss Elon Musk on a live stream of Clubhouse, an invitation-only social networking app popular in Silicon Valley….
In the online interview, Mr. Musk, questioned the motive behind Robinhood retail trading limits, asking whether hedge funds had pressured the company or wielded influence at the DTCC.
“I don’t have any reason to believe that, then you’re getting into conspiracy theories,” Mr. Tenev responded.
Silver surges, AMC ticks up and GameStop falls as retail investors shake up markets [ABC News]
Cryptocurrency Platforms Struggle With Demand From WallStreetBets Fervor [WSJ]
GameStop Day Traders Are Moving Into SPACs [WSJ]
SEC to Review Brokers’ Restrictions on GameStop, AMC Trading [WSJ]
Gensler Faces Big Challenge in Tackling GameStop’s Wild Ride [NYT]
Tesla’s Elon Musk Speaks With Robinhood Boss About GameStop Stock Trading [WSJ]
Elon Musk says bitcoin “on the verge” of being more widely accepted [Reuters]
Keith Gill Drove the GameStop Reddit Mania. He Talked to the Journal. [WSJ]