By Thornton McEnery
“Brokers receive incorrect data that gets displayed to the public all the time,” explained Anthony Denier, CEO of trading platform Webull Financial. “Once brokers are made aware or catch the error themselves, they rectify it as soon as possible, but because this error happened regarding short interest on GME it’s now a conspiracy against the Apes.”
But because of the scrutiny that eagle-eyed Apes are putting on meme stocks, even Denier sees a shift happening.
“This is the new world, but I will tell you this, the retail army has put everyone on notice to be better,” he said.
The retail army has also made it difficult for old school traders to get comfortable with any trend.
Another clear indicator of how retail Apes play by their own rules was the fact that between 3 p.m. and 4 p.m. EST Friday, GameStop soared 7.6% and AMC popped almost 13% in that time frame as social media was rife with users encouraging one another to BTFD, or buy the f@*$ing dip.
The major indexes also pared back losses in the final hour of the trading day, but GameStop and AMC have both managed to go on dramatic run-ups in the last hour of trading every day this week.
Some die-hard Apes will continue to believe that there’s more to bad data than simple errors by some of the most trusted and drama-free investment advisers around and that no one is selling in a massive selloff because everyone’s hands are as diamond as their own, but some might also be coming around to the notion that they started a movement in January and there are people on the fringes who see that movement as. a tradeable trend, and they aren’t as zealous…and they have much softer hands.
And we’re not talking about hedge funds…necessarily.
Now, what remains to be seen is if the dips created by those fringe players remain buyable as the world starts to shrug off COVID variants and gets back to normal as Jay Powell tightens the spigot and money gets a lot less cheap.
Diamond hands will start to feel heavy by then, but so will the cost of borrowing to short a videogame retailer stock that is up 900% in 2021.
And, oh, GameStop reports earnings on Dec. 8.