Gamestop ($GME) has been in the news a lot lately and I’ve written three articles about it on Medium. It’s been an amazing thing to watch, the short squeeze that took short-seller Melvin Capital down (allegedly) and how crazy the r/WallStreetBets group is.
I admit that I traded on all the activities and I made a tidy profit but I considered my success due to sheer luck and being at the right place at the right time. Of course, I gave back some of my gains on $AMC and $BB, but I consider that a ‘scratch’ and just the cost of trading. Stonks go up! Or do they?
My cynical self is looking at GME now, reading the r/WSB chatter and on StockTwits, and I think the run is over. Maybe I’m wrong and cynical, but Wall Street is better prepared against them now. RobinHood, who doesn’t give a damn about you, is trying to survive.
In a statement, they share this tidbit:
We continuously monitor the markets and make changes where necessary. In light of recent volatility, we restricted transactions for certain securities to position closing only. You can see the latest here. We also raised margin requirements for certain securities.
I completely get it, taking down the hedge funds is a personal thing for a lot of the people in r/WSB. Hell, this post and quote are poignant and it resonates with me too.
To the boomers, and/or people close to that age, just now paying attention to these “millennial blog posts”: you realize that, even if you weren’t adversely effected by the ’08 crash, your children and perhaps grandchildren most likely were? We’re not enemies, we’re on the same side. [via Reddit]
Still, there is a Wall Street Rebellion happening. A financial MAGA populist crowd has formed on Reddit and they’re gunning for blood. I wonder if the financial elites are scared? It’s too early to tell in my opinion but things are looking more ‘normal’ now. Only time will tell if this was nothing but a glorified and complex wealth transfer to the strong hands-on Wall Street again.