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I’m giving Jimbo, our new chief splainer, the lead again. Jimbo, take it away!
6 hours ago, Jimbo said:
As I predicted trading in the most shorted stocks restricted.
But not entirely suspended.
No….rather trading has been “Slanted”.
i.e. the Redditers can only sell but they cannot buy!!!!!!!!!
(A sort of reverse hotel California – in the song you can check in but never leave…well Redditors can leave (sell the stock) but they can never check in (buy the stock)).
So if they cannot buy then who is on the other side of the trade when they sell, who are the buyers??????
Who is in the “Hotel California” position?????????
Answer (drum roll please):
The long short hedge funds who need to buy back the stock to close out their underwater short positions.
The rules of the game have been flipped 180 degrees so that the Redditers no longer occupy the privileged “Buy” position, the long short funds do!!!
A beautiful example of the current wall street power dynamic at work.
And here is our ES fucutures non-chart of the day. Dinosaurs and elephants, perfect W’s and inverted V’s. Who ever heard of an inverted V? Pattern of the Day!
Non Chart of the Day 2, GME 30 minute bars at 4:10 AM ET.
For some odd reason, I don’t think this ends well. I even mused yesterday about pulling my funds out of my brokerage account and switching over to Treasury Direct where I’d park it in T-bills for a few months. Just musing…
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