GME stock saw a massive increase in trading volume on Monday when the stock jumped to nearly $35 per share.
The surge came after S3 Partners CEO announced GME stock could go parabolic if it rose to $30 per share.
GameStop was halted twice on Monday after the market opened and has slowly trended downward since.
The stock was forced to lose its momentum despite the heavy trading volume seen early in the trading day.
GameStop’s volume surged nearly 5 times its average trading volume on Monday but was prohibited from surging.
Retail investors are calling S3 Partner’s announcement a setup, or trap to burn shareholders.
But Wall Street can easily create a big sell order in the market despite of heavy volume from retail, the question here is why not go long with them?
Last year, GameStop and AMC shareholders were able to inflict hedge funds who were betting against the two companies with billions of dollars in losses.
Are retail and hedge funds at war with one another?
It certainly seems so.
Is a GameStop Short Squeeze Likely?
Despite the market advantages financial institutions have over retail investors, large continuous volume over a period of weeks could trigger bigger price action for GME stock.
One-day rallies of heavy buying volume isn’t enough to combat market makers.
Like last year, it’s going to take continuous buying pressure to compound the momentum that will likely result in a GME short squeeze.
But I’d love to know your thoughts on the matter.
Leave a comment down below.
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Frank, hedge funds have been able to manipulate the market for well over a year. Is a short squeeze still even possible?
Let’s start a discussion! Leave your thoughts below.