Tag: Investing News (Page 1 of 13)

Citadel Has a Long History of Market Manipulation

Citadel Market Manipulation
Market News: Citadel and friends are entering the crypto space | Ken Griffin.

Citadel and friends are entering the crypto world very soon.

EDX Markets plans to bring ‘traditional finance’ to the crypto space, a not so ‘traditional’ space to begin with.

The exchange made up of Citadel, Sequoia, Paradigm, Virtu, Charles Schwab, and Fidelity is debuting in November.

EDX Markets will start trading a limited number of spot, crypto tokens starting with a November trial period, with the official launch in January, per Bloomberg.

Similar to trading equities and options, EDX will allow investors to buy and sell digital assets through their existing broker dealer, rather than an outside venue or directly through a crypto-native exchange. 

“We’re taking some of the best features of traditional finance and bringing it to the digital markets to make it more efficient, and bring that cost saving to investors,” Nazarali said.

Nazarali is the former global head of business development at Citadel Securities.

But as many are aware, these financial institutions have a long history of playing unfair.

Will these sharks taint the crypto space too?

Let’s look at Citadel’s market manipulation history.

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Citadel Market Manipulation

2015

In 2015, an account operated in China by the brokerage arm of US hedge fund Citadel was suspended.

It was the latest casualty of regulators’ hunt for market manipulators and short sellers at the time.

The China Securities Regulatory Commission said that the Shanghai and Shenzhen stock exchanges had suspended 24 accounts as part of a probe into high-frequency trading.

The investigation focused on a practice known as “spoofing” in which an investor submits a buy or sell order but then withdraws it before a sale is completed — a practice that can mislead investors by creating the false impression that a stock is trading at a particular price.

Citadel confirmed that one of its accounts managed by Guosen Futures was among those suspended.

2017

SEC Citadel

In 2017 Citadel paid the SEC $22.6 million to settle charges of misleading conduct.

The hedge fund misled customers about the way it priced trades.

The SEC found that between 2007 and 2010, Citadel used two algorithms to execute stock trades on customers’ behalf that gave investors a worse price for their trades, even when Citadel knew better prices existed elsewhere.

“This affected millions of retail orders,” said Stephanie Avakian, the acting director of enforcement at the SEC at the time.

Citadel neither admitted nor denied the findings.

2021

In 2021, Failure-to-Delivers (FTDs) rose dramatically in the period leading up to January 28th, 2021, a phenomenon consistent with increasing short interest by market makers such as Citadel Securities.

FTDs are indictive of naked short selling, which occurs when a short seller does not actually possess the security it is supposed to borrow.

This practice is largely inaccessible to individual investors but accessible to market makers.

At the time, Citadel, Robinhood, and others restricted retail investors from buying ‘meme stocks’ in order to prevent escalating institutional losses.

Citadel eventually lost billions after betting against AMC Entertainment in 2021.

But the entire system needs a refresh – The DTCC waived a total of $9.7 billion of collateral deposit requirements on January 28, 2021, saving brokers, and screwing up retail investors.

2022

The Chicago Tribune published a piece explaining exactly what retail investors have been warning the SEC about.

Citadel Securities’ dark pool dominates a big part of the financial world, accounting for as much as half of U.S. stock market activity.

The Chicago Tribune says this prominent dark pool is run by Chicago Billionaire Ken Griffin’s Citadel Securities and has been targeting small scale retail investors.

And they’re not wrong.

Dark pools are typically involved in payment for order flow (PFOF), where they pay broker firms to receive retail order flow.

Brokers such as Robinhood and TD Ameritrade accept payment for order flow.

But retail investors have been bringing these nefarious practices in the market to light.

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Leave your thoughts in the comment section below.

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Shoutout to @EduardBrichuk for compiling some of this information on Twitter.

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Bed Bath & Beyond CFO Dies After Insider Trading Lawsuit Claims

Market News: Bed Bath & Beyond's CFO Gustavo Arnal has died after insider trading claims.
Market News: Bed Bath & Beyond’s CFO Gustavo Arnal has died after insider trading claims.

Bed Bath & Beyond’s CFO Gustavo Arnal died shortly after facing lawsuit claims of insider trading with GameStop’s Ryan Cohen.

His death occurred days after the company had announced it would be closing 150 stores and cutting 20% of its corporate staff.

The incident occurred less than two weeks after the executive, 52, was named in a federal class-action lawsuit on allegations of federal securities fraud, insider trading, and breach of fiduciary duty, according to court documents, per Business Insider.

The Chief Financial Officer was found dead on Friday after falling from the 18th floor of a New York City apartment building.

Arnal was cited in the suit along with activist investor and GameStop chairman Ryan Cohen, who the lawsuit claims collaborated with the CFO in a “fraudulent scheme to artificially inflate the price of Bed Bath & Beyond’s publicly traded stock.”

On August 18, both Arnal and Ryan Cohen sold shares of the company, with Arnal selling more than 42,000 shares for an estimated $1 million, and Cohen selling the entirety of his 9.8% stake through his firm, RC Ventures, causing share prices to plunge.

The lawsuit claims Cohen — who is also the co-founder of Chewy and chairman of GameStop — approached the CFO about his “pump and dump” scheme in March 2022, and “convinced Gustavo that their plan would be a mutually beneficial one.”

BBBY CFO & GameStop Chairman allegedly collude in pump and dump scheme

Ryan Cohen BBBY Insider Trading Lawsuit Claims.
Ryan Cohen BBBY insider trading lawsuit claims.

“Under this arrangement, defendants would profit handsomely from the rise in price and could coordinate their selling of shares to optimize their returns,” the lawsuit states. 

Arnal allegedly worked with JPMorgan, which is listed as a defendant in the suit on claims the bank “aided and abetted” the plan by “enabling Cohen to use JPM’s accounts to effectuate such transactions and otherwise launder the proceeds of their criminal conduct.”

Ryan Cohen made a profit of $68.1 million from his stake in Bed Bath & Beyond.

Bed Bath & Beyond was one of the so called ‘meme stocks’ that was halted last year alongside AMC Entertainment stock and GameStop after retail investors had aimed to squeeze short sellers from their positions.

Investors and shareholders are still figuring out how to process this tragic death.

Leave your thoughts down below.

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AMC Skyrockets More Than 7 Times Pandemic Levels

AMC stock news today
Market News: AMC dominates in Q3 as share price and attendance rises

AMC Entertainment stock closed today’s trading day up more than 7 times during pandemic levels.

When the pandemic closed movie theatres, AMC was trading at $3.19.

AMC stock closed at $23.67 on Wednesday.

Mainstream media has been menacing about pointing out how far out the movie theatre chain is from its all-time high.

And CEO Adam Aron is not happy about the misleading headlines.

The CEO took it to Twitter to express his concerns.

Here’s what’s happening.

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Mainstream media attacks

It comes as no surprise to see mainstream media publish headlines AMC is falling when in fact it is surging.

Or to read how far out AMC is from last year’s all-time high rather than the progress the company has made this year.

The conflict of interest surrounding institutional short sellers and the media is something that should be addressed more frequently.

Short and distort campaigns have focused on bringing AMC down in efforts to drive shares down.

Elon Musk has personally spoken out against short and distort campaigns saying it “takes advantage of retail investors”.

Here’s what AMC CEO Adam Aron had to say:

He says, “AMC is 11 times when we were written off for dead, 1/5/2021 $1.98 #TellTheWholeStory“.

Corporate media in the end is a corporation, an establishment that will cater to those who compensate them.

Though their approach may be unethical without a doubt, it’s up to retail investors to speak out and share pieces on the truth to educate their neighbors.

The Motley Fool, Yahoo Finance, fall in line

Yahoo Finance

The Motley Fool and Yahoo Finance have been one of AMC’s biggest media adversities.

For over a year now, both media sites have aimed to destroy AMC Entertainment’s reputation by painting a doomsday scenario around the company stock, CEO, and shareholders.

Other companies using short and distort campaigns to attack the movie theatre company include:

  • Benzinga
  • Seeking Alpha
  • InvestorPlace
  • MarketWatch
  • The Verge
  • CNBC
  • Barron’s

Independent blogs such as Franknez.com have been publishing the latter, the progression of the company.

Fox Business’s Charles Payne has also provided a positive attitude towards the development and recovery of the movie theatre chain.

But it’s the ‘ape’ community made up of retail investors who have been telling the ‘whole story’.

The true story.

So, what can investors do to combat mainstream media?

Share content from independent writers, share that activist’s tweet, and get the community’s voice heard.

That is what corporate media truly fears.

Related: How to Invest in The Stock Market for Beginners

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AMC Becomes One of The Most Purchased Stocks

Market News: AMC becomes one of the most purchased stocks on Fidelity
Market News: AMC becomes one of the most purchased stocks on Fidelity

Wall Street is baffled as AMC becomes one of the most purchased stocks on Fidelity in the past week.

Mark Taylor from Mirabaud Securities says “the ‘smart guys’ are confused and fighting from a position of weakness.”

But has the retail community really been that covert?

The retail community has been fighting against market injustices for over a year now, which a lot has been an effort to drive short sellers out of ‘meme stocks’ such as AMC and GameStop.

‘Meme stocks’ have been suppressed by market makers and short sellers in order to prevent the stocks’ high demand from causing further losses.

It was reported AMC short sellers had lost more than $1 billion this year so far.

Are retail investors about to deliver another blow to Wall Street?

Let’s discuss it!

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AMC breaks $20 again

AMC Entertainment stock has broken the $20 levels again.

It’s going to have to hold well above $26-$27 if retail investors are to see it beyond $30 again.

AMC had peaked to $27.47 during the pre-market but underperformed like majority of stocks.

While trading volume in the past two days has been over 100m, today’s volume showed signs of cooling momentum.

Still, AMC is holding around $22.50 relatively well.

Shareholders are loading up on the stock prior to the new dividend distributions.

AMC will be distributing 1 APE stock for every 1 AMC share investors hold.

The new security will be tradable in the market and will provide the company with liquidity to pay down their debt and raise cash if need be.

For investors, a cash cow that may significantly grow in value.

This incentive is attracting more investors to buy the theatre chain stock and causing confusion amongst short sellers.

But there’s one thing mainstream media isn’t discussing, and that’s that retail activists and shareholders aren’t going anywhere.

Some folks truly don’t know

The retail community might have been painted as degenerates that originated from the Wall Street Bets Reddit forum and that what happened last year simply happened.

But that’s not the case at all.

The activist community has grown and has aimed at the SEC for its incompetence in market structure.

Marketing campaigns have sprawled on the streets of Chicago calling out Citadel’s Ken Griffin for market manipulation and Gary Gensler for allegedly being complicit.

Even the DTCC is under fire by retail investors yearning for change in the market.

The Depositary Trust & Clearing Corporation (DTCC) had its windows covered with flyers that read – DTCC, Disgraceful, Thieving, Complicit, Committee “allowing financial crimes under their watch”.

The market manipulation that has suppressed ‘meme stocks’ such as AMC for over a year now have prevented the stock from squeezing the big players from the game.

Loopholes have raised the attention of millions of investors who simply want to participate in a fair market where supply and demand dictate price action, not market makers and complicit regulators.

Some folks don’t truly know this, but this is a new breed of retail investors.

‘Meme stocks’ become beacons for change

So why are people becoming obsessive with stocks such as AMC and GameStop?

It’s because in today’s world, people are obsessed with real positive change.

For change in their daily lives, change in the financial lives, and change in the markets for the future generation.

Wall Street will very soon notice it’s time to pass the torch.

Finance is changing, culture is changing.

This is why AMC stock has become one of the most purchased stocks in the market.

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Investors Bulk Up on AMC Stock Before Dividend

AMC stock
Market News: AMC volume surges as investors wait for APE stock dividend

Investors are bulking up on AMC stock prior to the new stock dividend.

The big volume has caused AMC Entertainment stock to rise 18.86% on Friday and more than 15% on Monday.

A new $APE stock was announced during Thursday’s Q2 earnings call, part of a dividend AMC Entertainment will be distributing to shareholders later this month.

This ‘AMC Preferred Equity’, or APE, will be available to all AMC shareholders by the 19th of August.

Investors should see the new ticker on their broker accounts the following trading day.

But why is this new $APE stock a big deal?

That’s what we’re here to discuss.

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AMC’s volume surges

AMC’s trading volume has more than doubled surpassing 100 million both on Friday and Monday.

This strong demand for the stock has also caused the stock to trade significantly higher.

AMC closed at $22.18 on Friday and traded around $25.50 per share majority of Monday’s trading day, even reaching $26 per share.

The stock is up more than +56% on the 5-day trading chart and more than +61% on the monthly.

The high volume in the recent days suggests retail investors are going in the offense to make the most out of this upcoming APE stock dividend.

How many APE will AMC shareholders receive?

AMC shareholders will receive one APE share for every AMC share they hold.

(Ex. 1,000 share of AMC = 1,000 additional shares of APE stock)

Shareholders will be able to trade APE stock based on supply and demand meaning the security will indeed hold value.

The value shareholders will be receiving in the next few weeks is unlike anything else in the market.

APE stock IPO

AMC Ape stock

Although APE stock is merely a dividend from an already publicly traded company (AMC Entertainment), the structure could almost be seen as an IPO due to its introduction to the market.

This means that like an IPO, we could expect APE stock to surge in price during its first few days to weeks in the market.

The sheer volume on its own could create a massive surge similar to what we witnessed with HKD stock, especially if institutions buy in heavily.

Perhaps it’s not the exact magnitude we saw with HKD stock, but something similar with enough buying power and demand for the stock.

Here, shareholders will be able to maximize profits from APE stock and AMC stock, if AMC has not already squeezed short sellers.

There will be money to be made for early adopters.

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Related: HKD Stock Squeezes from $13.54 to More Than $2.5k

HKD Stock Squeezes from $13.54 to More Than $2.5k

HKD Stock Short Squeeze
Market News: HKD stock surges more than +20,000% after IPO

HKD stock squeezes from $13.54 per share to a whopping $2,521.72 per share in just two weeks.

The stock traded a low of $13.54 on July 19th, gradually growing in the coming weeks leading up to today’s massive price runup.

Brokers halted HKD where it stopped trading around $2,200.01 per share and then again at $1,800 per share.

The SEC then intervened and suspended the stock, something that happens due to serious concerns about the activity of a company’s stock, operation, or other financial information.

What is HKD stock and why did it have this incredible squeeze?

Let’s discuss it down below.

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What is HKD stock?

AMTD Digital, Inc., also known as HKD stock, was founded in 2019 and is headquartered in Singapore.

AMTD Digital is the integrated digital solutions platform of AMTD Group, an Asian financial services centric conglomerate, per Crunchbase.

Headquartered in Singapore, AMTD Digital strives to build a one-stop, comprehensive, cross-market, innovative digital financial services platform.

AMTD Digital aims to leverage its scarce and comprehensive digital financial licenses and offer integrated digital banking, digital insurance, digital asset exchange, digital payments and remittance, and other digital licensed businesses across Southeast Asia and in the Greater Bay Area.

HKD stock caught the attention of investors after share prices soared to extreme levels in only a matter of weeks.

The stock is currently halted and suspended by the SEC as they investigate the price surge.

HKD stock IPO date

HKD Stock joined the stock market on Friday, July 15th where it more than doubled its IPO price.

AMTD Digital saw soared +142.59% out of the gate despite Friday’s volatile trading day.

The company had only raised $124.8 million through its initial public offering.

Its market cap soared past $407 billion in just two weeks since its IPO date.

Why did HKD stock go up?

why did hkd stock go up

AMTD Digital has a low share float of just 19 million shares.

That means when there’s overwhelming demand for the stock, and there are few sellers, the stock price goes vertical.

According to data from Fidelity, Tuesday’s top traded stock among its customer base was AMTD Idea Group.

Business insider says it looks like buying has been from retail, but I highly doubt that as Reddit forums have investors questioning why no one caught this.

If I were to take a guess, it was an institutional pump and dump.

I’d love to learn what you think.

Leave your thoughts in the comment section of the blog down below.

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Phase 6 Margin Call Requirements on The Way

Phase 6 Margin Call Requirements
Market News: Phase 6 Margin Call Requirements on the way | ISDA

Market News: Phase 6 margin call requirements are on the way.

Institutions under UMR who had not previously been affected by these specific margin requirements will be as of September 1st, 2022.

Uncleared Margin Rules (or UMR) were created to address the OTC derivatives market–and its participants– in the wake of the global financial crisis (GFC) of 2008-2009.

It implemented new margin requirements for non-centrally cleared derivatives to avoid further systemic risk.

For this reason, they were ‘phased in’, or broken down by phases.

Institutions affected by phase 6 margin call requirements could find themselves in a sticky situation and I’m going to discuss why down below.

Let’s get started!

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Preparing for margin calls

The requirement to exchange initial margin for over-the-counter (OTC) derivatives is one of the last remaining pillars of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) that remains to be fully implemented.

The five-year implementation period began in 2016.

UMR Phases - Phase 6 Margin Requirements
UMR Phases – Phase 6 margin requirements

The chart above depicts the number of counterparties affected throughout each phase.

Phase 5 occurred in September of 2021 where 319 counterparties were affected.

We will be entering Phase 6 in September of 2022, where 775/990 counterparties with more than the $8 billion scope detailed on the graph, or gross amount across all uncleared OTC trades, will be affected.

Phase 5 of UMR touched a mix of sellside and buyside firms, especially medium-sized banks and larger buyside firms.

However, Phase 6 is almost exclusively buyside-focused meaning we could potentially see a massive market rebound, per Bloomberg.

Institutions affected by Phase 6 margin call requirements may include asset managers, banks, hedge funds, and private family offices.

The entire process is extremely challenging according to Bloomberg.

But while it may seem complex in nature, it’s the results that truly matter.

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How long will it take for margin calls to happen?

Although Phase 6 margin call requirements are going into effect on September 1st, 2022, it’s important to note that this is going to take some time.

The derivatives market is massive, now boasting approximately 1 quadrillion derivatives as of May 2022, per Investopedia.

The Senior Principal at BNY Mellon has said in the past that even after Phase 6 there will be margin calls that will still have to be processed.

That’s how massive this event will be.

Phase 6 margin call requirements will begin to margin a variety of sized banks, hedge funds, market makers, and family offices.

The bottom line, the markets need this reset, and its coming.

For a much greater and in-depth walkthrough of what this event means, check out AMCBIGGUM’s video below.

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For You: Retail Investors Petition to Fire SEC Chairman Gary Gensler
Phase 6 Margin Call Requirements meaning

Retail Investors Petition to Fire SEC Chairman Gary Gensler

Petition to fire Gary Gensler
Market News: Petition to fire Gary Gensler surfaces in retail community.

Retail investors have gotten together and started a petition to fire SEC Chairman Gary Gensler for obstruction of justice.

The SEC Chairman is believed to be complicit to the market manipulation occurring in the day-to-day stock market.

Gary Gensler admitted in a Bloomberg exclusive that 90%-95% of retail orders do not go through the lit exchange, such as the New York Stock Exchange (NYSE), but rather through foreign exchanges, or dark pools.

Retail’s concerns have fallen on deaf ears as market maker and hedge fund Citadel remains in operation.

franknez.com

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Retail demands Citadel investigation

retail demands citadel investigation
Citadel’s Ken Griffin.

The market maker and hedge fund, who also has its own dark pool, is responsible for processing almost 50% of retail trades.

How do they receive this many orders?

Through a process called PFOF, or payment for order flow, where the institution pays brokers such as Robinhood a fee for retail orders.

Citadel then profits from retail as they exchange these orders through foreign exchanges where they can get a better deal, pocketing the small spread.

But that’s not all.

Citadel is short on AMC Entertainment stock, one of the most popular stocks amongst the retail community aiming to squeeze short sellers from their positions.

Investors have looked at Gary Gensler for solutions to the stock’s suppression, but the SEC has only made fun of the retail community; and now they want him out.

Change.org

change.org fire gary gensler
Change.org | Petition to fire Gary Gensler.

Retail investors are now demanding for change.

But retail aren’t the only ones to stand up to the SEC.

Tesla’s Elon Musk has been very public about the SEC’s incompetence and has even spoken out against short sellers and malpractices used to short his company in what he calls short and distort tactics.

These same tactics have been used to drive retail’s favorite stocks down despite big demand for the stock.

Retail investors are rising to market injustices and are demanding the SEC Chairman step down and Citadel receives a proper investigation.

You can sign the petition to fire Gary Gensler on Change.org here.

The petition has already received more than 14,000 signatures.

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Support your favorite blog for only $4/mo.

Franknez.com

Your support helps maintain all the costs it takes to run a blog at this scale.

The mission of this platform is to spread the truth majority of corporate media isn’t willing to, by giving the people in our community a voice.

Your dedicated support keeps this platform going.

Thank you for being a reader.

– Frank Nez


Citadel Paid SEC $22.6 Million to Settle Charges of Misleading Conduct

Citadel Paid SEC $22.6 million
Market News: SEC and IEX go after Citadel years after charges of misleading conduct.

In 2017, Citadel paid the SEC $22.6 million to settle charges that it misled customers about the way it priced trades.

The SEC found that between 2007 and 2010, Citadel used two algorithms to execute stock trades on customers’ behalf that gave investors a worse price for their trades, even when Citadel knew better prices existed elsewhere.

The SEC penalized Citadel for failing to disclose the use of those algorithms to clients.

“This affected millions of retail orders,” said Stephanie Avakian, the acting director of enforcement at the SEC at the time.

Citadel neither admitted nor denied the findings.

Today, Citadel has lost the court case against the IEX order type crippling its trading strategy, more on that down below.

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Citadel cheats retail investors

Citadel has been cheating retail investors for years now through a variety of loopholes the SEC has failed to stop.

The market maker is responsible for processing almost 50% of retail orders.

Citadel receives these orders by paying brokers such as Robinhood in what’s known as PFOF, or payment for order flow.

The problem arises when these orders are then traded through foreign exchanges allowing Citadel to pocket the best trading bid, essentially stealing from retail.

They accomplish this through HFT, or high frequency trading.

And because 90%-95% of retail orders are not executed through the lit exchange (NYSE), it gives Citadel’s short positions a massive advantage against retail investors going long.

This means only a small fraction of the demand is truly reflected in a company’s share price.

What is currently being done about the market manipulation?

SEC Citadel

The SEC has publicly discussed the possibility of banning PFOF for good, but the industry has lashed out.

In October of last year Citadel sued the SEC over the new D-Limit order that would protect displayed lit orders from being picked off by latency arbitrage players.

IEX is an exchange that relies heavily on the D-Limit order to outperform displayed order prices on other exchanges.

This means that predatory strategies such as market arbitrage, where high frequency firms profit from lower prices in foreign exchanges, will no longer be able to do so.

High frequency trading has been used against retail investors to not only gain better prices on stock from other ‘slow loading’ exchanges, but by also using this advantage to sell stock significantly cheaper.

So when you find an exchange that is showing lower prices, hedge funds betting against certain tickers may borrow high in another exchanges while benefiting the difference from selling the stock in those displaying lower prices.

The D-Limit order uses AI technology that provides more consistent and accurate data across all exchanges.

How will IEX affect Citadel?

how will IEX affect Citadel

In short, Citadel Securities and other high frequency trading firms will lose a lot of money.

The reason being is they are making money every second from using this high frequency trading technology to their benefit by getting better prices than anyone else in the market.

The IEX Exchange would put Citadel Securities in the same courtyard as retail investors, leveling the playfield.

IEX would create a foundation for a fairer market.

Citadel paid the SEC $22.6 million to settle charges on misleading conduct in 2017, but karma seems to be catching up for the hedge fund and market maker.

On July 29th, 2022, it was announced that Citadel has lost the court case against the IEX order type.

This is massive win for retail investors and a huge blow to the market maker and hedge fund.

But the SEC still has a lot of work ahead, especially if they’re looking to earn the trust of retail investors.

Only time will tell how significant this battle truly is.

For more market news and updates, join the newsletter today.

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Sources: Reuters.

Related: Citadel Loses Court Case to IEX Order Type

Support your favorite blog for only $4/mo.

Franknez.com

Your support helps maintain all the costs it takes to run a blog at this scale.

The mission of this platform is to spread the truth majority of corporate media isn’t willing to, by giving the people in our community a voice.

Your dedicated support keeps this platform going.

Thank you for being a reader.

– Frank Nez


GameStop Short Sellers Eat $443.4m in Losses

GameStop Short Seller Losses
Market News: GameStop Short Seller Losses | GameStop outperforms S&P 500

GameStop short sellers are having one of the worst months this year.

Investors betting against the stock have amounted more than $443.4 million in losses, according to S3 Partners, LLC.

Hedge fund Melvin Capital closed earlier this year when it failed to recuperate from its losses shorting GameStop last year.

S3 Partners, LLC recently released a report showing AMC short sellers have lost more than $1 billion this year so far.

It seems financial institutions have not learned their lesson this year.

Here’s the latest market news surrounding GameStop and short seller losses.

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GameStop outperforms the S&P 500

GameStop outperforms the S&P 500

The market has been down all year, but GameStop has managed to outperform the S&P 500 index.

The SPY is down more than -17% this year while GME stock has managed to hover at -12.70% this year-to-date.

Looking at the 6-month chart and we’ll find GameStop outperforms the S&P 500 by a long shot.

On the 6-month chart, GameStop is up +42% and SPY is down -8%.

The one-month charts are fairly similar with both up about +2% in July.

And with GameStop’s stock split making the stock more affordable, it’s fair to say more investors will be jumping in on it.

It’s very possible GameStop short sellers end up getting caught at the wrong end of the trade again as the third quarter ends and we transition towards Q4 in October.

According to a report published by S3 Partners on July 21, GameStop has been among the top 10 most unprofitable stocks for short sellers during July 2022.

Other companies on that list include:

  • Tesla
  • Apple
  • Amazon
  • Nvidia
  • Visa
  • Coinbase
  • Lucid
  • Meta
  • Microstrategy
Most unprofitable shorts July 2022
Most unprofitable shorts July 2022

The loss of -$443,463,550 is equivalent to a net loss of -24.22%.

Tesla, Apple, and Amazon had the most unprofitable shorts for the month of July, netting billions in losses.

Related: List of The Best Stock Tickers to Day Trade

Retail sentiment in GameStop

The retail sentiment in GameStop is still rather strong and bullish.

And because GameStop’s reported short interest is still quite high at 23.86%, it’s very possible big momentum is able to squeeze the remaining short sellers from their positions.

Another short squeeze is still very possible for GME stock.

Are you a shareholder?

Leave your story in the comment section of the blog down below.

Related: How to Invest in The Stock Market for Beginners

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