Dumb Money, Part 2?
He's back.... TRYING to... crush Wall Street!
Reporting for Slope of Hope, David Pinsen writes:
“Roaring Kitty, as the meme stock investor Keith Gill calls himself, returned to X after an absence of three years last month, and posted a few memes, with no specific stock commentary. On the basis of that alone, GameStop Corp. (GME) shares spiked from $17.46 on May 10th, to $55.69 on May 14th, before giving back those gains.
”Yesterday, Gill returned to Reddit, posting a screen shot, purportedly of his account, showing a $116 million position in GameStop, and 120,000 call options on it. As a result the stock spiked over 64% in early trading on Monday.”
Reporting for Bear’s Bulletins, Yours Truly writes:
The insanity of all this, let’s call it Dumb Money Part 2, interestingly has a net effect positive return, overall, across the board.
How?
It’s simple really.
The majority of retail investors, for decades, have had a sneakin’ suspicion that Wall Street Always Wins! Yet, we never really could put our finger on, precisely, HOW!
Sure, Roaring Kitty, may be a Carnival Barker for the working class, as Tim Knight points out, yet… it’s these salt of the earth folks who are awakening to the sham that the market, currently, is propped up by anything but regulatory structures and politics.
Dark pools, high-frequency trading, insider information, and preferential treatments may have been the not-so-public mechanisms that give institutional investors an edge over retail investors. But that’s changing fast, as all things to the extreme eventually do snap back to the middle, like an over-extended rubber band.
Transparency is becoming the new standard!
Over to Andrei Jikh, for the rundown on that (2nd half of this video):
TL;DR:
I continue to believe that company valuations and market index pricing is psychotic. Insane!!!! Never seen anything like this before.
Then again, the equities markets are a proxy for societal and cultural norms, too. Yeah, strange fu*king times we’re in! People are losing their collective sh*t and the market is overly-inflated, propped up by politics, and living on borrowed time.
So, Brad and I continue to find, network with, and do due-diligence on seasoned traders; those who don’t really care about what is or isn’t legit with equities. All that matters, quite frankly, is price movement.
More to come… and/or… comment below.
