$370 intraday swing. I’ve never seen anything like it in my life. If you don’t understand how short selling works, and how a squeeze on said short works, this chart is a great lesson. But that intraday isn’t the only thing I had never seen before.
It was all fun and games (and legal) until Robinhood unilaterally halted trading of GME for their clients, while the market remained totally open. All the other daytrading brokers (TD, Schwab, etc) followed suit. Basement traders could sell, but couldn’t buy, while the big boys were unrestricted. The free market ended in that moment. Stock peaked at $483, then started to plummet, to the squealing delight of the big hedges who had been burning through capital like Hunter Biden burning through hookers and blow.
As bad as this was, it got worse. As they rode it down like a rented three-legged donkey, they started allowing buying again, but only to close out your position IF YOU WERE ALREADY SHORT. I can’t believe I am typing this.
As bad as this was, it got still worse. At 11:25a.m., as the stock hit the intraday low of $117, Robinhood said “hold my beer” to itself and began arbitrarily selling their clients’ positions without their permission.
Wow, just wow.
I have been out of the market since 2011. I have never regretted it.
Short on time. Read more at the links.