There’s a bit of a fantasy going on that seems to be everyone’s favorite topic: the showdown between Reddit and Wall Street. I don’t buy it, and their new play is proof — WallStreetBets’ silver short squeeze tells me that these are not your average Joes.
Now, I certainly don’t mean to discredit their trading and what they’ve been able to do. They have good trades and they know how to use social media well.
This isn’t a David and Goliath, “the people vs. the hedge funds” story though.
These guys know what they’re doing, and that’s evident from their silver short squeeze.
My first clue that these WallStreetBets traders were pros was how they managed to pull off the GameStop Corp. (NYSE: GME) squeeze. They knew how to manufacture the short squeeze by creating a gamma squeeze…
That’s not something a retail trader sitting at home in their pajamas knows. That’s a professional-level plan.
WallStreetBets’ Silver Short Squeeze: A Dead Giveaway
I’ve had a lot of people messaging me, saying we should get into silver.
First off, let me clear something up: Silver isn’t a stock. It’s a commodity and a whole different animal than squeezing GameStop.
Nonetheless, it is the newest target of the Reddit forum.
Silver began to make a jump last night, and is up over 10% today as I filmed this. Looking at the charts tells me that this is an inside job.
I have a hard time believing that the everyday trader is sitting at home on a Sunday night trading futures with margins and driving it up by double digits — and with insane volume. There have been 129 million shares of iShares Silver Trust (NYSEARCA: SLV) traded today… That’s quadruple the fund’s average daily volume.
That’s not a normal move. That screams “pro” to me.
And this is going to keep going… At least until some regulatory blowback happens.
Let’s take a look at the WallStreetBets’ silver short squeeze and why it’s proof that these aren’t your average retail traders.
Make sure to email your trading questions to jeff@joyofthetrade.com and be sure to subscribe to my YouTube channel.
P.S. Kingmakers have been around for thousands of years…
If you don’t know who they are… They are just the most influential people in the world…
And right now, in the stock market, they consist of people like Warren Buffett, George Soros and Ray Dalio.
What do all of these men have in common (other than billions of dollars in net worth)?
They can single handedly send the share price of any given stock to the moon.
Trading expert Adam Sarhan seems to have figured out how to track the moves of these financial juggernauts…
And he wants to show you how you could take advantage of massive moves by the Kingmakers.
