GME, AMC, BB! WTF? Stonks go up!

Photo by MayoFi on Unsplash

Are the Roaring 20’s Back?

The fundamental shift in the market that began when Robinhood started has finally manifested itself for the world to see. The melt-up of stocks like Tesla, Gamestop, AMC, and even Blackberry is a result of what’s being called the meme stock market economy.

I say, bring it on!

It’s part investor activism by gathering like-minded retail investors together and buying (bidding) up over shorted stocks and crushing hedge funds in the process. Once considered the weak hands for hedge funds to ‘fleece’, they’ve become the strong hands now.

Big Fish, Little Fish
Big Fish, Little Fish

These retail investors are young and have seen the 2008 and even 2000 market corrections that blew out Main Street. They probably saw their parents lose their houses in foreclosure or some other calamity. They want a piece of the pie now and they’re using technology and organizing to get it.

Is this market manipulation? I don’t think so. It’s free speech, just like a stupid Trump rally. You just assembled a bunch of crazy retail investors that chant, “We like the stock! We like the stock!

The pile into a stock and then buy the dip. This is affectionately known as BTFD (Buy The Fucking Dip).

Just look at these moves. GME was a once in a lifetime event for me but it might become the norm now. Making money was damn easy, even I got into it over the past few days.

GME, Stonks go up!
GME, Stonks go up!

There’s chatter on the Reddit group to push GME up to $1,000. I think that’s unlikely but you never know with these ‘kids.’

BB, Stonks go up!
BB, Stonks go up!

Blackberry is another darling that’s caught their eye, you can see it gapping up and finishing up strong yesterday during a down day for the market.

AMC, Stonks go up!
AMC, Stonks go up!

If you take a look at AMC (above), you can see that the short-sellers tried to push it back down but the r/WSB people kept BTFD and pushed it higher to close. That’s a massive ‘hanging man’ chart pattern if I ever saw one.

This time it’s different!

This time it’s different was said about the 2000 market and we all know how that turned out. I believe what we’re seeing now is the start of a new ‘Roaring 20’s’ and I expect a massive Depression after it finally collapses. I could be wrong, and I’m often wrong, but I’m a believer that history does repeat itself.

We just can’t help ourselves.

The Roaring 20’s are back but it’s different this time. Money has been sitting on the sidelines for too long and now that Trump is gone, it’s going to start pouring in. All the stimulus (gasoline) under Trump and soon under Biden is sloshing around and itching to make alpha, it’s coming in and these Redditors are the proverbial ‘matchstick.’

This time, it’s the retail investors (if they can hold on to it) that will be calling the shots.

Wealth will be reallocated to the Meme Makers. Crazy, I know, but the one thing I learned trading and investing in all these years is that you ‘trade what you see’.

Stonks go up!

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