FX_Professor

GameStop $440 in premarket

NYSE:GME   GameStop Corporation
GameStop GME , the video-game retailer that is closing shops because of Covid and became famous now with it's association with the Reddit message board-fueled retail attack on institutional short sellers has just touched $440 in premarket trade.

The loss-making retailer was priced at around $19 heading a few weeks ago and $60 last week before storming higher.

GameStop has become the poster child for the 2021 stock market and its incredible volatility and speculation. The stock has gained 1,700% in January, causing pain to short-sellers. A trade like none we have seen before.

The huge moves in GameStop (GME) stock have been, very clearly, the result of a short squeeze. A squeeze is a phenomenon that can occur after big gains happen in a stock that, in turn, cause mounting losses for short sellers who are forced to cover their positions.

Even Investopedia had to rewrite their short squeeze articles.

WHAT'S NEXT?

People hunting for the next Short-squeezes will be a new hobby to many. Especially young traders, normally those who are currently on Instgram and Telegram groups about cryptos.

What I would also expect is the SEC coming out with some new circulars.

ps. I heard about this on Youtube but for sure there will be a film about all this in a few years. Title ' The Big Squeeze' πŸ™ˆ


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