It’s now February and the weekend has largely splashed cold water over the burning fire that was GameStop.
The weekend was filled with articles about how redditors have “moved on” from GME and now looking for the next great short squeeze. There was an incredible amount of info pushing retail investors towards the silver market.
The claim is that silver has been manipulated for years to keep it’s price down relative to just about everything else.
The problem is that the silver market is huge and it’s doubtful that any meaningful push from retail investors will really do anything like it did with GME.
It’s really frustrating to see this kind of information being pushed around as the reduction of GameStop coverage has dried up much of the trading volume.
The day encountered ladder attacks – institutions selling shares to each other in 500 lot increments systematically to drop the stock pricing. Unfortunately, the ladder attacks were largely successful as the volume of trades was significantly lower today.
Afterhours trading today, the stock got decimated even further, dropping another 20% at time of this writing.
There’s some silver(pun intended) lining to holding, and it’s that the volumes traded so far, there are still a lot of open short positions. These shorts must be covered at some point so those institutional investors must buy or keep bleeding money every day they’re holding.
With all this downward pressure, it really takes more than just diamond hands to keep holding the stock. It’s now a matter of diamond guts. Seeing one holding drop by 40% in 1 trading day is quite an experience. I do not recommend it, but I can also say that until you feel it yourself, you don’t know what it REALLY feels like.
It doesn’t feel good…
To be continued…