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Now TDA is blocking AMC and GME. Wonder who will follow suit.
I explained the situation to my wife and she instantly told me we should buy in and participate in this. I think that is exactly what is happening worldwide right now, and I wonder what the pain tolerance will be when it heads south a bit.
I do agree with @SMCJB on GME, not a good short opportunity regardless of what's transpired these days.
Tom Sosnoff & Dylan Ratigan discuss the GME and the potential impact on the market. From an investor and regulation side. Interestingly, many of the comments in this thread are cited in this video.
They also do a good job explaining how all the shorts got caught with their pants down. At a high level; the reddit users drove the price up initially then prop firms and wall street institutions came in and started shorting it. Then more individual investors started piling in and suddenly the prop firms had to cover and drove the price higher. Then the larger firms like Melvin capital started feeling the heat and they started to cover. Basically the run up became a self fulfilling prophecy of shorts covering and individual investors rushing in to participate in the run up.
I doubt it becomes the new norm, but I bet these hedge funds and investment firms stop cheerleading their short positions like they've been doing in the past.
@Silver Dragon I think that's probably a better explanation. Retail wasn't the cause of the squeeze, but maybe had a hand in tipping the first domino.
There have been several runups which have defied logic in recent months. Tesla probably being the most notable. Actually, I think the prop firms will see this as a opportunity to make money. They may embrace it. Time will tell if this is the norm.
Kinda wish I had signed up at some point, but never bothered because I just browsed and read posts. I wouldn't be surprised if they purge all the new members in the last few days if they can.
