As this GameStop short squeeze saga unfolds,
let’s not forget how Hedge Funds initially benefited from the emergence of a RobinHood trader.
Back in March-April of 2020, when millions of young ppl were forced to stay at home with nothing to do they started first with BUYING popular household names: AMZN, MSFT, AAPL, etc.
Stocks like AAPL, TSLA and AMZN reached $2TR valuations because of Robin Hood traders maxed out their exposure there.
Robin Hood rookies were buying FAANG stocks and Pelotons exactly because they were SO obvious…
As AMZN and AAPL reached $2TR in valuations, these mega-stocks became unreceptive to the new retail money, so with some fits and starts this crowd-sourcing “market research” identified short squeezes as Achilles Heel…
And this dangerous game of GameStop has emerged…
No wonder that the short squeezes in GameStop are coincident with the underperformance of MSFT, AMZN, etc.
