Yesterday the stock market shrugged off its Wednesday plunge as the market rallied hard. It’s churning time. I didn’t think Thursday morning that this drop was the start of a big correction, because of the spike in the VIX it brought with it. It was a wild day, though, that caused the story of the WallStreetBets message board group, which was promoting the Gamestop (NYSE: GME) stock, to make the national news cycle with calls of outrage from right-wingers like Senator Ted Cruz and the left wing “squad” in Congress to unite in a call for action against brokerages that decided to limit trading in the stock to protect their OWN exposure from it. Robinhood in fact had to draw a line of credit, because of the volatility. That story made the news of the morning GDP release vanish from the news cycle as it was too miserable to look at too hard. Who wants to hear about it?
At 2:00 PM I took a look at the Reddit Message board and it had 4.1 million members. By 5:00 PM it at 5.2 million thanks to the media coverage.
And an hour after that someone sent me a message telling me that the Reddit people are looking to take a shot at piling into silver They gave me a link and I took a screenshot for you.
Well that will be interesting if they help fuel mass buying into silver. No sign they have yet, although many silver mining stocks were up big yesterday, but as of now there still isn’t a single gold or silver ETF or stock on the Robinhood top 100 list, where Gamestop (NYSE: GME) is in the top 40 list, which is why that line of credit became so necessary. Personally, I would not buy or sell a stock based on what anyone is saying on this message board. I’m bullish on silver and mining stocks anyway, and like how my top small cap miner for this month held up this week when most of the others dropped.
Yesterday afternoon I talked with Jim Goddard of www.howestreet.com about the market action.
-Mike
