Blue Collar Revenge: SHOCKWAVES Hit Wall Street and Hedge Short Traders

Street

After today, the stock market will never be the same. It’s the revenge of blue collar America against the elites of politics and Wall Street. Billion dollar hedge fund managers are panicking and bailing each other out as millions of everyday people push them toward ruin, buying one or two shares at a time.  In the wake of Election2020 and COVID19 the American people have found a new weapon with which to strike back. The shockwaves are reverberating through the markets.

Every smartphone user with a bank account and a few dollars to spare is now their own stock broker thanks to companies like Robinhood, TD Ameritrade and E-Trade. These services generally do not require a minimum investment, are easy to use and real-time reporting is readily available.

The situation is difficult to explain fully without a basic understanding of complex financial transactions but Markets Insider reports,

“As investors and hedge funds bet against GameStop, Reddit traders are feasting.”

Translating the Financial speak of Mainstreet’s Revenge

Small-time investors using smartphone based trading apps and communicating on forums like Reddit’s WallStreetBets, average, everyday people caught wind that the massive billionaire hedge-funds had bet against the video game retail store operator Gamestop (GME) through “short-selling”. Investopedia describes short-selling as,

“In short selling, a position is opened by borrowing shares of a stock or other asset that the investor believes will decrease in value by a set future date—the expiration date. The investor then sells these borrowed shares to buyers willing to pay the market price. Before the borrowed shares must be returned, the trader is betting that the price will continue to decline and they can purchase them at a lower cost. The risk of loss on a short sale is theoretically unlimited since the price of any asset can climb to infinity.

In other words, incredibly massive billionaire firms have bet massively that COVID19 lockdowns will continue to drive Gamestop’s already low stock value even lower. And some 2.3 million+ individual traders in a reddit forum and now beyond have decided to collectively punish them for profiting off of the misfortune of COVID19. As of this writing the punishment is to the tune of $5 billion in 2021 and is only increasing with Market Insider reporting losses totaled nearly $867 million on Tuesday alone as shares rocketed as much as 95% higher.

Elon Musk, known for his legendary “sh*tposting” and in general spawning memes weighed in on twitter and fanned the flames.

Dictionary.com tells us “In internet slang, stonks is a deliberate misspelling of stocks, as traded in the stock market. It is often used to refer to such stocks—and finance more generally—in a humorous or ironic way, especially to comment on financial losses.”

The Meme Wars have Reached the Wall Street and Its Spreading

Overnight, Shares of the movie theater firm AMC Entertainment quadrupled according to CNBC “amid a flurry of trading activity in some of Wall Street’s most shorted stocks.” As the hashtage #SaveAMC began to trend on Twitter,  trading in the stock was halted for the first time due to volatility. Shares were halted several additional times during the first hour of trading amid heavy activity.”

As the dust began to clear and brokers put restrictions on AMC and Gamestop trading to try to limit the damage to the Wall street big-boys,

“At 3pm on Wall Street, it was trading 265% higher at $18.06. Earlier, it jumped as much as 310% just after stocks opened for trading. During premarket trading shares had been up as much as 360%.”

It’s Free Speech, a New Form of Protest, It’s the Future

CNBC’s Jim Cramer said “It’s the ‘wallstreetbets’ people.′ And they have ganged up, arguably allowed by free speech purposes, to center on a few stocks,” he continued ““GameStop, arguably the reason why they’re in it, this fellow Ryan Cohen did a great job on Chewy,” Cramer said. “This is the paradigm. You’re going to see it with Bed Bath & Beyond, using a Loop upgrade. You’re seeing it for Adam Aron’s company, AMC,”

According to Cramer this could be the beginning of the end for old-school Wall Street because, “It’s the mechanics of the market are breaking down. It’s arguable that these people [buying these stocks] are all one group. But my securities lawyer said, ‘Free speech covers it,’” Cramer said. “They are using arguments that they think hold up under scrutiny. I don’t think they do. But it doesn’t matter what I think.”

Simply put: Freedom of speech, Instantaneous communications and Entrepreneurial spirit have changed the markets forever. This is the new weapon of the American people against the media-industrial complex and wall street, it’s financial civil war.

*Disclaimer* All opinions expressed by the analysts quoted here are solely their opinions and do not reflect the opinions of Patriot United News or R-Tag Media, their parent company or affiliates, and may have been previously disseminated by them on television, radio, Internet or another medium.
You should not treat any opinion expressed on this website as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Such opinions are based upon information the analysts consider reliable, but neither Patriot United News nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon.
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