The short squeeze saga continues this morning.  Robinhood lowered the number of shares under restriction, but those that remain on the list are almost a joke, especially the restrictions on GameStop (GME).

Several short squeeze names are edging higher in pre-opening action including:

• AMC Entertainment Holdings (AMC)
• BlackBerry (BB0
• Koss Corp (KOSS)

There are a lot of Reddit traders going into silver and SPACs.  I think the former has a legitimate value proposition from here, but I would take SPACs on a case-by-case basis.

The Battle is Joined

The genius of the battle between individual investors and hedge funds probably goes back to the Great Recession in the United States when Wall Street took on enormous risks that ultimately led to them being bailed out. Meanwhile, the nation slipped into the worst recession since the Great Depression. 

Without a doubt, many millennials trading on Robinhood or other apps have a chip on their shoulder that provides as much motivation as greed.  For many, it’s even more.

Hedge funds as the evil empire emerged in the aftermath of George Soros breaking the British Pound.  The complexity of the plan needs to be read through various sources for a better understanding.  From Main Street’s perspective, it’s pretty simple.

This newfangled entity called hedge funds, and led by George Soros, made huge bets that the British pound would go lower.  Their bets helped push the pound lower, and eventually, it became self-fulfilling.  On September 16, 1992, they “broke the Pound.”

September 17, 1992, became known as Black Wednesday in the UK.  It’s estimated to have cost British taxpayers 3.3 billion, much of which was transferred to the bank account of Soros.  Many historians believe it was this action, and the rise in cheaper labor, that powered the Brexit movement.

Couple that with the fact more people want a piece of the action.

Portfolio Review

There were no changes on Friday.

Today’s Session

I liked the action pre-open.