American Airlines joins GameStop trading frenzy as calls for probe build

[turbinetree]

Source: Reuters

BANKS
JANUARY 28, 20214:31 AM UPDATED 18 MINUTES AGO

By Sagarika Jaisinghani, Shriya Ramakrishnan

5 MIN READ

(Reuters) - An almost 60% surge in shares of American Airlines led stellar gains for a series of social-media hyped stocks on Thursday, broadening a battle between small-time traders and major Wall Street institutions that has shaken U.S. and European stock markets.

GameStop, the video game chain whose 1,700% rally has been at the heart of the slugfest in the past week, retreated after initially adding another 37% in early trading.

On Reddit thread WallStreetBets, where calls to buy stocks have helped drive the extraordinary moves, some of its more than 4 million members reported trading platform Robinhood was now preventing investors from buying new shares in GameStop and other of the companies.


Read more: https://www.reuters.com/article/us-retail-trading/american-airlines-joins-gamestop-trading-frenzy-as-calls-for-probe-build-idUSKBN29X12T

[NYC Liberal]

1. Oh, now they want more regulation.

[turbinetree]

2. Like Robert Reich said, do these same hedge funds remember what they did in 2008

[whistler162]

21. Some local talking head

said he thought that the hedge fund traders might learn a lesson. Had to laugh at that.

[bucolic_frolic]

3. Multiple second tier brokers apps & sites are down, or many are locked out

Twittersphere in a tizzy over it.

Robinhood, TDAmeritrade, Ally involved.

[kimbutgar]

4. I used to work in Wall Street and for a hedge fund

I am so amused these trading programs are being “ gamed” and huge hedge are getting hurt!

The big hedge funds have these programs that if they see buyers the algorithms start buying the stocks pushing them up in artificially.

[bucolic_frolic]

6. Any idea of what's up with the broker sites being locked down?

I'm thinking it's volume and bandwidth is going to those who own it, rather than lease it.

I'm suddenly aware .... all account info is electronic! Do I have a statement? No. I have confirmations of trades. And yesterday's confirmations are incomplete. As of 9:35am I have no access.

Tens of thousands of investors will be moving their accounts ASAP. This could cause a run on some brokers. I mean failures involving the SEC and SIPC.

Or it could be brokers are locking down everything to prevent trading in GME AMC. Who knows?

[RainCaster]

8. And now the hedgies are selling back & forth to lower the price

very high speed trades only- each going lower. Meanwhile, most of the "retail" platforms for investing are locked out.

[Jon King]

5. They hate it when the public gets in on their games....

Ha, these hedge funds crack me up. They have been screwing the world over for decades.

[NotHardly]

7. The uber-millionaires & billionaires just hate it when the "little guy" clues to their game

... we are used like toilet paper by the robber barons and it seems they hate it when the unwashed masses catch on to their game and beat them at it in spite of the roadblocks they've set up for us.

Shows me how deeply they despise us and how willing they are to complain when we use their rules against them.

Seems to me that I have seen this movie before....government will step in and squash the little guy giving the new rules to the monied elite again.

[Sapient Donkey]

18. Can't mess with the rich people's money, because they get their wittle feeeeels hurteded.

This is like police shooting dogs. It seems like one of those things that "regular people" across the political spectrum seem to shares views on. That has to mean something.

[lunasun]

9. +1

[modrepub]

10. The Invisible Hand Smacks Some Worthy Folks

It's funny how fast the big company deregulators howl when the system starts draining them of money. You have to be wary of big companies using government regulation to protect themselves.

It's just as likely that a regulation is put in place to protect a big-monied interest from market competition as it is for it to be protecting the little guy from abuse.

[trc]

11. I watched an interview on cnbc online yesterday

during which the interviewer seemed to suggest that the retail investors were somehow cheating the system because they had not done massive amounts of research on the stock. The man being interviewed call BS on that and asked a very pointed question: the big boys are pissed off about this move on Gamestop stock by retail investors, but where is the outrage at a hedge fund being allowed to "borrow" gamestop stock to a level of 140% of the issued stock with the plan to sell the stock, they don't own, once it reaches a target low price. This hedge fund was intending to make a large amount of money by shorting the stock, they got burned, and now are crying about stock market manipulation. Another question that was asked was where was all this concern in 2007 when the big, high risk investment banks transferred their losses to the retail market, crushing so many "average investors" and then took a federal bailout? This was pay back on a small scale and has been quashed as "stock market manipulation." Ridiculous.

I just went to Youtube to add the video link to this comment. The video has been taken down. The interview was with Chamath Palihapitiya

[crickets]

15. I found a link to the video on MSN

https://www.msn.com/en-us/money/markets/watch-cnbcs-full-interview-with-chamath-palihapitiya-on-gamestop-and-reddit-fueled-surge/vi-BB1d9l7X

I'm 7 minutes in on a 33 minute video and to my own amazement, I'm very likely to listen to the whole thing. Thanks for the heads up on the interview.

[BumRushDaShow]

17. This clip?

[trc]

19. That is part of the much longer interview

See the link in Post #15

[BumRushDaShow]

20. Yes - I had noticed pieces of that whole interview had been uploaded

Just happened to find one that matched your description since you mentioned the interview had been "taken down" from youtube!

[pimpbot]

12. democrats better tread carefully on this one

I know wall street donates heavily to both sides. We need to avoid any appearance of siding with the hedge funds or big banks. The fact that most online brokers restricted buying specific stocks is a huge red flag and further evidence that the market is rigged for the big boys and they don't want small timers interfering.

I am also in favor of investigating who is behind r/WSB. If it truly is a bunch of average Joes fine, but could easily be foreign actors or other hedge funds pumping/dumping.

[Blasphemer]

13. I agree. AOC tweeted support for the retail investors and Ted Cruz (of all people) agreed...

We've already seen what can happen with populist sentiment on the right.

[dalton99a]

14. Kick

[BlueWavePsych]

16. Someone got squeezed