This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use.I can't take my eyes off of the stock market. It's like watching a Hollywood Thriller. More accurately, it's akin to watching a train wreck when you are unable to look away.We have seen continued insane price action on GameStop and other assets that are being targeted by WallStreetBets and the wider social media trading community. AMC Movie Theaters went up many multiples over night, and there are other stocks that look likely to be next. The strategy seems simple - find a stock that is being heavily shorted, wait for volume to increase and buy. The volume increase is a sign that the "manipulators" are front running their calls, buying before they share the idea.Whether what is happening is legal or not is for the lawyers to decide, but it's fascinating to watch.What strikes me is the reaction of regulators, who have stated that they are monitoring social media chatter and WILL HALT TRADING on any stock with unusual social media activity.WHAT!?First, this seems like an egregious overstep of power, and makes it clear that it is only a free market for funds and big money, and not for the little guy. Second, this is an incredibly slippery slope. What determines "unusual" social media activity? How is this quantified and who makes the decision? If they shut down trading on a stock because of social media activity, will they also shut down trading if Jim Cramer of CNBC push a company? Third, if regulators know ANYTHING about the community they are dealing with, they would know that the moment they shut down trading, they will likely be confronted with an army of bots spamming stock names and cashtags on social media to break the system.Also, as compelling as it is to watch this David and Goliath tale unfold, it's hard to believe that we we are seeing on the surface is the full story. My assumption is that there is big money behind this, and that WallStreetBets and retail are merely pawns. This is total conjecture, but the amount of money needed to move these stocks is far greater than an army of stimulus checks.I have no idea how or why this is happening, but I do know that we are seeing the small cracks in the stock market start to widen. Be careful out there, and don't spend all of your stimulus check in one place (or on one stock).I will be live streaming your chart requests today at 2 PM EST on YouTube. Requests can be submitted via email in response to this newsletter, between 8 AM and 1 PM EST. One chart request per person, please.https://www.youtube.com/watch?v=bBqouTyZnEMIn This Issue:UNI Says To The Bears: You Shall Not Pass - From IntoTheBlockBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsReddit Vs. Wall Street Rages OnThe Underlying Mechanics Of The GameStop TradeDoes Bitcoin Need A 2T Market Cap For ETF Approval?My Recommended Platforms And Tools
The Wolf Den #165 - The GameStop Saga Continues
The Wolf Den #165 - The GameStop Saga…
The Wolf Den #165 - The GameStop Saga Continues
This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use.I can't take my eyes off of the stock market. It's like watching a Hollywood Thriller. More accurately, it's akin to watching a train wreck when you are unable to look away.We have seen continued insane price action on GameStop and other assets that are being targeted by WallStreetBets and the wider social media trading community. AMC Movie Theaters went up many multiples over night, and there are other stocks that look likely to be next. The strategy seems simple - find a stock that is being heavily shorted, wait for volume to increase and buy. The volume increase is a sign that the "manipulators" are front running their calls, buying before they share the idea.Whether what is happening is legal or not is for the lawyers to decide, but it's fascinating to watch.What strikes me is the reaction of regulators, who have stated that they are monitoring social media chatter and WILL HALT TRADING on any stock with unusual social media activity.WHAT!?First, this seems like an egregious overstep of power, and makes it clear that it is only a free market for funds and big money, and not for the little guy. Second, this is an incredibly slippery slope. What determines "unusual" social media activity? How is this quantified and who makes the decision? If they shut down trading on a stock because of social media activity, will they also shut down trading if Jim Cramer of CNBC push a company? Third, if regulators know ANYTHING about the community they are dealing with, they would know that the moment they shut down trading, they will likely be confronted with an army of bots spamming stock names and cashtags on social media to break the system.Also, as compelling as it is to watch this David and Goliath tale unfold, it's hard to believe that we we are seeing on the surface is the full story. My assumption is that there is big money behind this, and that WallStreetBets and retail are merely pawns. This is total conjecture, but the amount of money needed to move these stocks is far greater than an army of stimulus checks.I have no idea how or why this is happening, but I do know that we are seeing the small cracks in the stock market start to widen. Be careful out there, and don't spend all of your stimulus check in one place (or on one stock).I will be live streaming your chart requests today at 2 PM EST on YouTube. Requests can be submitted via email in response to this newsletter, between 8 AM and 1 PM EST. One chart request per person, please.https://www.youtube.com/watch?v=bBqouTyZnEMIn This Issue:UNI Says To The Bears: You Shall Not Pass - From IntoTheBlockBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsReddit Vs. Wall Street Rages OnThe Underlying Mechanics Of The GameStop TradeDoes Bitcoin Need A 2T Market Cap For ETF Approval?My Recommended Platforms And Tools