Short Squeeze In Reverse

Yesterday I asked GameStop Plunged 30% Today, Is the Short Squeeze Over?

This was my answer:

Squeeze Likely Over

My guess is the squeeze is over. Hedge funds have covered their shorts. And we have a three surge stage that frequently marks tops in short squeezes.

If my thesis is correct, GameStop will go back where it came from. The market makers will pull bids as they did today.

Today offers solid confirmation. People who had huge gains need to preserve them before they are gone.

GameStop fell all the way to $74 from a short squeeze high on January 28  of $483.00. That's a 4-day intraday high to low decline of 84.7%.

The hedge funds who covered at $483 are really smarting. 

RECOMMENDED ARTICLES

Flashback January 30

Let's flash back to my January 30 post Naked Shorting is Illegal: So How the Hell was GameStop 140% Short?

Movie Coming Up

The book on the World's Biggest Casino is already out . I confidently predict the movie is coming up.

Two main characters are ready identified. Vlad Tenev the founder/CEO of Robinhood and DeepF&ckingValue the 30 year old engineer in Boston on the WallStreetBets side.

The CEO and the CIO (the villains) at the Melvin and Citadel hedge funds will be part of the main cast members.

Those who produced “The Big Short” will handle this one the same way.

Movie in the Works

Yesterday, Quartz reported the GameStop Saga is Already Headed to Hollywood.

Following a bidding war, MGM acquired the rights to adapt Ben Mezrich’s GameStop book proposal, The Antisocial Network, Deadline reported. Mezrich previously wrote a book about Facebook’s founding, The Accidental Billionaires, which became the Oscar-winning 2010 film The Social Network. Early Facebook co-founders Cameron and Tyler Winklevoss, who were portrayed in The Social Network by actor Armie Hammer, will executive-produce the film based on Mezrich’s as-yet-unwritten book.

Buying the movie rights to a book proposal—not an actual book—is unusual, but it underscores how ready-made the GameStop saga is for Hollywood. It’s also further evidence of how quickly the film industry needs to move in order to secure potentially lucrative intellectual property nowadays.

That was surprisingly fast. 

Mish

GameStop is Down Another 42%, When Does the Collapse End?

Despite the obvious fact that the GameStop squeeze is not only over but in reverse denial runs deep.

Naked Shorting is Illegal So How the Hell was GameStop 140% Short

GameStop was 140% short. That is illegal. So how did it happen?

GameStop Plunged 30% Today, Is the Short Squeeze Over?

GameStop fell from $316 to $212. What's ahead?

How Do GameStop and Silver Trading Differ From Bank Lending?

The Reddit-inspired attack on GameStop exposed Wall Street corruption for what it is. Now let's discuss banking.

Fat Tails, But Which Way? Up or Down?

Alpine Macro has an interesting article on risk. They provide two extremes, melt up and melt down.

Fed to Inject $1.5 Trillion in Liquidity But Markets Plunge Again

Although Fed stepped up to the plate today with $1.5 trillion in emergency liquidity, the market continued to dive.

Argentina Peso Plunges to Record Low After Asking IMF for $50 Billion

The interest rate in Argentina jumped to 60% and the Peso to a Record Low after the country called on the IMF for funds.

Chloroquine Poisoning and Deaths But "Hey It Works"

Despite little evidence it work, a rush to buy Chloroquine pushed prices up 400%, and that's not all.