In true full moon madness yesterday, Dogecoin went howling at the moon as it pumped a historic 770% in 24 hours. I don’t even know how to interpret this kind of price move, other than to say that it looks like Dogecoin became a "Godecoin" overnight.
It all apparently started on the Reddit messaging channel where chat groups of amateur traders decided to “stick it to the man” on Wall Street by co-ordinating a mass buy up of certain stocks. One of these was an average stock in the retail gaming store GameStop. Traders have been organizing the buy up so that the price pushed upwards steadily all week. This was a direct attack on large hedge funds who had gone short on the stock, betting it would fall in price.
As a result these big institutional investors got really burnt, which was the whole point of the group of amateur traders, known to frequent the popular trading app Robinhood. It was Main St versus Wall St - and Main St was winning. Until Wall St changed the rules and screwed the people over once more. Robinhood, as well as Interactive Brokers and others, halted trading of the affected stocks, preventing traders from capitalizing on the stock price pumps.
Other shares involved in the pump and dump were AMC (down 57%), BlackBerry (down 42%) and Nokia (down 29%), all blocked by Robinhood during the price volatility yesterday. As a result some traders lost massively as they were locked out of their trading platform for those particular shares. The rules, applied to elite Wall St institutions, were reversed for the Main St traders in true elitist fashion once again.
This left traders furious, with Robinhood saying they were merely protecting traders from themselves, during the volatility. Some say Robinhood has been severely tarnished by this and may not recover its reputation as an honest app for retailers and amateur traders. Why were retail investors blocked from purchasing the stock when hedge funds were still freely able to trade it during the price swings yesterday?
It’s a complete double standard and yet another typical move by the elite financial industry to suit their own pockets while screwing over the retailers like you and me. I say we boycott Robinhood guys. Just like we should boycott Twitter for censoring freedom of speech.
Rep. Maxine Waters, (D-Calif.), chairwoman of the House Financial Services Committee, said in statement that “hedge funds have a long history of predatory conduct.”
Altogether seven top brokerage firms experienced service disruptions yesterday, on a day when Wall St had one of its best days in a while. All of this is due to the intensified trading volume from a small but organized bunch of amateur traders like us, using Reddit to plan their systematic attack on the cronies at Wall St. And they succeeded, showing us exactly how powerful we, the people, really are, if we organize.
In any country in the world, it is the mass of people, by sheer numbers, that can take over control if they so choose, regardless of whether we are in Asia or America, we the people are the real power, and the elite know this. That’s why they are scared of such organized unrest against them, politically or financially. So they just use a different set of rules for the masses comped to themselves. It’s a con game and we are the victims, oppressed by the elite who pull the strings.
Well yesterday’s attack on Wall St was a success, as prices pumped and dumped, causing much loss to those hedge funds that placed their bets against GameStop and other companies. Leading up to this, Robinhood trading platform has already just emerged from a lawsuit where they had to pay a fine of $65 million to resolve charges that they misled clients in a form of “predatory marketing” and lying about their source of revenue and profit in America.
Yesterday’s price volatility saw GameStop shares go from an opening price of $350, all the way up to $469, and then plunge to $115, only to settle later around $230 a few hours later. This price action is what triggered Robinhood to restrict trading for retailers who could only sell but not buy any of the shares involved. Not only that, but traders could not even transfer their own shares or funds out of Robinhood, AmeriTrade, Interactive Brokers and Webull trading platforms during the freeze.
This kind of co-ordinated attack on a stock by a group of social media activist traders is a somewhat new phenomenon, much like the color revolutions of the recent political past, where the masses organized themselves via social media and succeeded in attacking the elite who oppress them unfairly.
Apparently a similar campaign in under way now to attack silver, whose price is also manipulated by the financial elite and big institutions. Leading cryptocurrency proponent Max Keiser, once had a campaign going a few years ago called “short the banks – buy silver”, for the very same reason. The price fixing and insider manipulation is well known in the financial world, but the elites have control and appear to play by their own rules, while the masses are screwed time and again. Well the social media revolution had ignited a groundswell of activists and warriors who are fighting back at last.
In a further bizarre twist, at the same time, perhaps triggered by the stock market volatility or even engineered in a similar way, the cryptocurrency Dogecoin DOGE went on a historic price pump of over 700% in the past 24 hours. The mind boggles at the concept. Holders of the meme con with no real use case whatsoever, suddenly found themselves 7x richer overnight. Ah but wait...as I write this the DOGE price is retracing back to the 13 MA (moving average on the 1 hour chart, losing half of those gains in the matter of the past 1 hour.
This kind of volatility is only visible in the cryptocurrency market. It is enough to make the Wall St trader’s head spin but crypto enthusiasts are used to this kind of lunacy – especially on the full moon when the Doge will bark at the moon and even shoot for the moon, only to come crashing down like Icarus who tried to fly too high toward the sun in his hubris and pride.
Ref:
https://www.washingtonpost.com/business/2021/01/28/gamestop-stocks-reddit/