Posted on 01/26/2021 9:36:23 PM PST by yesthatjallen
Amateur investors piled further into niche stocks on Tuesday, sending professional short sellers scrambling to cover losing bets, with GameStop skyrocketing for a fourth straight day, thanks in part to Elon Musk.
GameStop surged 50% in extended trade after Musk tweeted “Gamestonk!!”, along with a link to Reddit’s Wallstreetbets stock trading discussion group, where supporters affectionately refer to the Tesla CEO as “Papa Musk.” “Stonks” is a tongue-in-cheek term for stocks widely used on social media.
GameStop’s after-hours surge added to a 93% jump during Tuesday’s roller coaster trading session, with the videogame retailer’s stock propelled by traders on Wallstreetbets, many of them buying volatile call options.
The share spikes of the last few days are raising questions about potential regulatory clampdowns from the U.S. Securities and Exchange Commission.
“Such volatile trading fueled by opinions where there appears to be little corporate activity to justify the price movement is exactly what SEC investigations are made of,” said Jacob Frenkel, Securities Enforcement Practice Chair for law firm Dickinson Wright and former SEC enforcement attorney. The SEC declined comment.
SNIP
(Excerpt) Read more at reuters.com ...
It sounds like Frenkel is calling for a crackdown on discussing stock trading on social media. This is wild stuff. Watch the 8 min video.
"Is it time for the feds to step in on the GameStop surge? Former SEC lawyer Jacob Frenkel on the Reddit rebellion and the thorny questions around legality $GME" (8 min video)
He’s just mad that someone besides his Wall Street cronies have found a way to manipulate the market.
Agree.
Frenkel is panicking and screaming, 'SHUT IT DOWN!'
It looks like they're trying to find another reason to curb the free exchange of ideas on the internet.
Yep, that’s how I trade. Someone yells “gamestonk” and I pull out my checkbook.
How are my frozen orange juice futures doing?
Gamers just wanted to play their games in peace.
Just because GME traded 178 MM shares today, while MSFT only traded 49 MM shs?
Who forced whom to buy or short GME?
https://www.zerohedge.com/markets/gamestop-explodes-higher-stock-now-trapped-200-call-gamma-vortex
Gamers are playing Wall Street like they game. To win.
The market is a game. Gamers love to game. They are finding the exploits and cheats and all that fun stuff in this game.
Good luck to the regulators. They are going to need it.
Remember that Gamers stood up to the cancel culture crowd and told them to stuff it up their collective asses and are one of the only communities to do so and do so successfully.
They will just move to encrypted anonymized forums like Telegram. Court orders and discovery will not work. Surveillance wont work.
Like I said, good luck to the regulators. They are pulling on a tigers tail.
They are also moving on AMC and BBBY. AMC doubled after hours.
Seems like Reddit Gamers/daytraders have discovered smaller cap stocks with minimal float and a lot of short interest (typically hedge funds).
Of course, as soon as Wall Street hedgies start to lose money, they run off to their Swamp regulatory cronies screaming “market manipulation”.
Melvin Capital hedge fund has multi billion dollar losses from GME just today. Citadel put 2.75 billion in yesterday, and it has aleady been lost. GME today opened at 70, closed at 140, and went to 210 after hours.
In some ways this is like pranksters and jesters storming the Capitol and taking. over. Reddit gamer auteurs wiping out hedge funds. gotta love it !
This is fascinating.
I never woulda foreseen it.
This is the most interesting thing going on over the internet right now and it’s beautiful. The Reddit people have some terribly “triggering” slang, but their slogan is so refreshing of a rebellion against a corrupt system that I think it’s worth repeating:
“We can stay retarded longer than they can stay solvent.”
If you needed hope that the effort of outsiders battling insiders was lost in the last election, here it is. A bunch of self-defined outcasts and joyriding anarchists banding together and causing havoc by gaming the system against what they see as a corrupt set of market makers who grew wealthy by gaming the system and ruining companies for years. It’s a form of cyberwarfare that we haven’t yet found the words to describe. Surely this form of warfare will end up outlawed within the year, but everyone who played will remember... and scheme for the next one.
Hell of a show.
“We can stay retarded longer than they can stay solvent.”
THE quote of 2021, and it’s still January.
” but Jacob Frenkel (Former SEC Lawyer) is in total panic.”
Screw him. He sounds like he’s trying to save the shorts and nothing more.
There’s nothing illegal that the wallstreetbets crew is doing. They aren’t lying about Gamestop or its finances. They are just using the power of the internet to generate a flashmob dedicated to busting a short fund. Welcome to the world of social media, shorty.
“There’s nothing illegal that the wallstreetbets crew is doing.”
Watch the regulatory Swamp Men try to change the rules to benefit their Wall Street Cronies.
When hedge fund scumbags get free airtime on CNBC to announce their shorts and talk down targets, that’s sacred free speech and capitalism.
when auteurs on WSB do it, it’s “illegal conspiracy market manipulation.”
That's pretty much what Frenkels' rant is about.
Well, he will have more to complain about, GME currently over $300 in pre-market !
The difference, then, is that hedge funds collude in secret and Reddit colludes in the open?
Let’s see the emails and communications from the hedge funds...
When I first started trading...many, many years ago.....I traded what was moving. Didn’t care what it did or who it was. If the symbol was moving I traded it. In and out. Sometimes in minutes. I traded many pump and dumps. The secret is to get out before everyone else bails. ;)
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.