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Retail investors vs Wall Street: "Nip" finally turned around?

Retail investors vs Wall Street: “Nip” finally turned around?

by YCPress

What happened in the stock market is difficult to attract my interest. I often don’t even understand the account, and I admit that I can’t escape the fate of “cooked dishes”. Besides, I am distracted at the sight of the K-line map. I always think of the Lianmian Mountains and so on, and I don’t know what’s wrong.

However, the group of retail investors in the United States are so eye-catching that they can’t hide.

The story is slightly complicated, and the process of competition between retail investors and Wall Street institutions runs through.

GameStop, a game product retailer mainly engaged in offline business, has been losing money in recent years. Coupled with the impact of the epidemic, it has not been favored by the market.

It has fallen into a “junk stock” all the way, but has been “Wall Street Casino” by the online base of retail investors in the United States and the section of Reddit Forum ( The retail investors of WallStreetBets have been “middled”.

By the middle and early part of January this year, the game station made great efforts to appoint three new directors and disclose the information that the sales of e-commerce channels had increased significantly.

The stock price unexpectedly rose sharply. But at this time, Wall Street short-selling institutions are still bearish, including the incense that even I, a woman, has heard of.

At this time, the users of the “Wall Street Casino” were not happy, and the target of the attack even expanded to the family of the founder of Xiangli, forcing Xiangli to raise the white flag.

The fighting spirit of retail investors was completely aroused, and many netizens in the forum continued to group together to do more, turning their guns to Melvin Capital, another short-selling agency.

During this period, the stock price of the game post station was crazy. The “junk stock” that used to be less than $3 rose to a record high of $483, which was really like rushing to the moon.

There are also two very dramatic nodes in the follow-up of the story. One is that Wall Street seems to be in a hurry.

On the 28th, the brokerage platform restricted retail trading, deleted the code of some stocks, and was ridiculed as “not talking about martial arts”; the other is that on the 29th, the big short Xiangyu suddenly announced that it had changed its line and changed to long from then on.

It happened that retail investors’ trading authority was “limited” restored, and the stocks that fell affected by restricted trading rose a lot. Have even big shorts been abused by retail investors suspected life? Anyway, after watching this drama, I doubt life.

The matter is not yet to be continued, and the US Securities Regulatory Commission also said it will “closely review”. On the surface, this messy punch of retail investors has played a lot of the myth of wealth creation.

Wall Street was once confused, and the short-selling institutions suffered a lot of losses, and there was a sense of instant vision of turning over. Is that really the case?

Can even this prove that retail investors can have no less analytical ability than professional institutions? We still listen to professionals. In the analysis I have seen, in addition to watching the excitement, I am reluctant to exaggerate the “victory” of retail investors.

The melt-out plunge after Wall Street’s “backlash” is estimated to be enough to tosss many retail investors. Under the joint encirclement of funds, trading platforms and media, retail investors are also in a dangerous situation.

It’s more like a farce, but the New York Times said sadly, “With retail investors, Wall Street will never be the same as before.”

I am more interested in the remarks of retail investors in Wall Street casinos than to study why retail investors can win this game.

How could this play be so crazy? Apart from the convenience provided by Internet platforms, what other factors make them closely together? A glimpse of them when they refute the accusations of Wall Street and the mainstream media.

In an open letter from forum user “ssauronn”, he denounced Melvin Capital, “Your continued existence is a sharp reminder that those who caused so much suffering in the 2008 crisis have not been punished”, hoping that the baby boom generation of seniors will support the young one represented by retail investors.

Dai, “Don’t support those who caused so much suffering ten years ago”. Don’t be too obvious about pertinence.

Parryhapitiya, who represents retail investors, is facing the question of “distals not complying with fundamentals” and retorts that the strategy of Wall Street hedge funds does not look at all.

This is a “dirty little secret” on Wall Street. Why are they not questioned? It probably means, “Why can’t we play if you play?”

Once there is a distinction between “you” and “we”, things are not that simple. Discuss what “Is retail shorting disrupting the market order” and “Is there any suspicion of illegal market manipulation”?

They have no intention to follow the existing rules at all, and are determined to provoke the rules and despise the elite and authority.” The “leading big brother” in Wall Street casino is 34 years old.

He is a financial analyst and a former employee of the insurance giant. More importantly, he is a “financial Internet celebrity” nicknamed “RoaringKitty” on YouTube.

This online name is strange and meaningful, “roaring kitten”, fierce milk, vaguely conveying the taste of “authoritative” of the little people’s anger.

The “2008 crisis” repeatedly mentioned by retail investors can be regarded as the starting point of the story.

The rescue policy adopted by the U.S. government in response to the crisis has been effective in stimulating economic recovery, but it has also directly led to the richer and the poor poor.

Coupled with the impact of the epidemic, some analysts believe that the gap between rich and poor in the United States has reached its highest level in 100 years. This is also the root cause of many social contradictions in the United States.

The New York Times quote, “Betting on game stations makes them feel empowered in a financial system that has taken advantage of them and their families for many years.” Class antagonism cannot fully explain this “war”.

For example, Parihapitia is a fake millionaire. But this is very helpful to understand the “crazy” of many retail investors. In addition to the desire to turn rich and the spiritual inspiration of the slogan “people only live once”, “the sense of deprivation” plays a great catalytic role.

Behind “crazy” is inexorbably inequalities. So it’s not surprising that many people will associate the siege of retail investors on Wall Street and the rise of populism in the United States and the “capturb” of Capitol Hill. The knot behind this is inextricably difficult to solve.

The large influx of retail investors into the stock market is believed by some experts to be related to the large-scale relief distribution by the Federal Reserve during the epidemic.

“The bullets distributed by the Federal Reserve finally hit Wall Street”; the bottom whites look forward to change the status quo, but place their hopes on Trump, who properly represents the rich, whose “political” during his tenure. One of the achievements is to reduce taxes for the rich. The road to ease class contradictions in the United States is also bumpy.

If society’s desire for fairness is not answered for a long time, it will be difficult for a country to say stability and tranquility, and it will be difficult to maintain prosperity.