Saturday, 30 January 2021

Special Update 30/01/2021 The Reddit Rout. Silver Next?

 Baltic Dry Index. 1452 -18  Brent Crude 55.88

Spot Gold 1848

Covid-19 cases 02/04/20 World 1,000,000

Deaths 53,100

Covid-19 cases 30/01/21 World 102,641,877

Deaths 2,216,584

“The surest way to remain poor is to be an honest man.”

Ebenezer Squid, with apologies to Napoleon Bonaparte.

January 2021 is a month for the history books. The month began with the Trump mob storming the US Capitol building, that alone was good enough for the history books.

But it ended with the Reddit mob storming the Wall Street hedge funds, completely trashing those daft enough to be short obscure, thinly traded stocks.

As an aside, how did the hedge funds come to be short 140 percent of GameStop’s float? Surely Wall Street wasn’t allowing “naked” shorting? They wouldn’t do that would they?

By the end of the week, the Reddit mob was pressing their luck in commodities, forcing the price of silver futures to jump by 99 cents on Friday. A nasty shock for the silver shorts. (Are the 1970s volatile commodity markets about to return? And if they do, what happens to inflation and the Fed’s promise of zero interest rates forever?) 

Coming next, an exciting February?

Sideshow or main event? GameStop stock ride weighed as bubble warning

January 29, 2021

Friday, 29 January 2021

Stock Casinos “GameStopped.”

Baltic Dry Index. 1470 -70 Brent Crude 55.37

Spot Gold 1845

Coronavirus Cases 02/04/20 World 1,000,000

Deaths 53,100

Coronavirus Cases 29/01/21 World 102,041,120

Deaths 2,201,044

“I do think the contagion risk is real. Any stock that is heavily shorted is exposed to getting GameStopped.”

Michael Purves, chief executive of Tallbacken Capital Advisors.

Faced with mounting losses all week on hedge funds short certain market stocks, Wall Street did what Wall Street does best, the smart money insiders went back to rigging the market against the little guy retail traders. 

Will it work?  We’ll have a better answer by Monday after we see what chaos unfolds later today, the first month-end in 2021, and after we see what more rigging is put in place over the weekend.  Is this the start of the Biden Bust?

Ironic justice to the Fedster’s, who’ve been rigging the Wall Street casinos at least ever since the 1987 “Black Monday” stock market crash. As you sow so shall you reap. 

Commodities next? Silver’s ideal, but remember how Comex and the Fed rigged silver against the Hunt brothers in 1980. Great fun.

Somebody has to be on the other side.

George Goodman, aka Adam Smith. The Money Game. Why Are The Little People Always Wrong?

Equity futures slide on nerves over retail-trading frenzy

January 28, 2021