Game stop
– The short victory that individual investors have won over the past two weeks in the war against the hedge funds, Wall Street’s short-selling force, seems to come to an end in two weeks. The value of GameStop peaked on the 28th of last month ($483) and ended at $90 on the 2nd, losing 81% of the peak.
The victory over the short selling power is overturned
GameStop stock price from $483 to $90
All of the ant operation shares fell, the silver price rose
Yellen, emergency meeting of head of finance this week
– On this day, the stock price of GameStop plunged more than 30% compared to the previous day immediately after opening, and remained sluggish throughout the day. The ants of the Wall Streetbets (WSB), an online stock forum in the US, encouraged each other to say “not selling” and “buy the dip,” but they failed to stop the stock price from falling. It’s not just Gamestop. In addition to the game stop, individual investors have moved to the silver market and surged the silver futures price by 8%, but on the 2nd, the silver price plunged 10% and returned all the gains in the past two days. AMC and Blackberry, which have been referred to as’ant operation stock’, also fell 41% and 21%, respectively.
The US media reported that the gamestop confrontation between hedge funds and individual investors is in the process of being organized. On the 2nd, the Wall Street Journal (WSJ) said, “The number of Gamestop stocks that hedge funds are borrowing to sell short is sharply decreasing.” “Hedge funds are also starting to withdraw from GameStop.” On the same day, Motliful, a media specializing in investment in the US, said, “The game stop situation is highly likely to end.” “The balance of short selling (the ratio of short selling that has not yet been liquidated to all stocks) has fallen from 140% two weeks ago to 39%. IHS Markit, a market research firm, was quoted and delivered. It is difficult to raise the stock price because the hedge fund has already cleared the short sale considerably, and the “short squeeze” (short squeeze), where the hedge fund buys stocks to close the short sale, will no longer occur. Bill Gross, who is called the king of bonds, warned that “the ants that are working around WSB are knocking on the door of the capital market without sufficient capital and professional mathematical knowledge,” and “in the end, only individual investors will be hurt.” Hyung-joon Lim, head of the Capital Markets Research Department of the Financial Research Institute, said, “Because the short selling balance, which had accumulated up to 260%, has fallen to the 30% level, we believe that the game stop situation has already passed the boiling point. There is a possibility that the stock price will fall further,” he predicted.
On the 2nd, CNBC of the United States compared GameStop to the’second Volkswagen’. Volkswagen, which was listed on the German stock exchange in 2008, has more than quadrupled over two days on the good news that Porsche increased its stake in October. Hedge funds, which had invested in short selling, were forced to buy Volkswagen stocks to reduce losses (short squeeze). However, after peaking on October 28 of that year, the stock price plummeted 58% for four days, and after a month, it dropped 70% from the peak and returned the rise intact. As the short squeeze situation ended, the stock price plummeted.
Meanwhile, US Treasury Secretary Janet Yellen is scheduled to hold an emergency meeting with heads of financial authorities this week to discuss changes in GameStop stock prices. The U.S. House of Representatives Financial Services Commission will hold a hearing on the 18th about the restriction of the stock trading app, Robin Hood, on the 28th of last month for individual investors to trade in GameStop stocks.
Reporter Jiyu Hong [email protected]
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