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just! Forced the sky to re-enter the best part of the silver jump! Exchange: demand is unprecedented!

iconFeb 1, 2021 09:02
Source:Hexun network

The week-long battle among retail VS institutions shows no sign of coming to an end, and the war continues. Silver, which was hotly discussed on social media over the weekend, continued to be shorted at the start of trading on Monday, jumping 6% and is still rising. At the same time, the volatility of shareholders caused by the big rally, the U. S. stock futures index fell more than 1% at the beginning of trading on Monday.

Spot silver jumped 6% at the start of trading on Monday, with a maximum increase of nearly 8%. Since the discussion of silver on American social networks, silver has skyrocketed in a row! Commodities analyst Eddie van der Walt said spot silver could rise in the short term, with a lot of discussion on social media over the weekend about "game post" silver manipulation.

However, spot gold quickly gave up its early gains, falling more than $10 to $1854 an ounce. It is obvious that bulls prefer silver.

(AMPEX), the US precious metals exchange, had previously said that due to unprecedented demand for physical silver products, we could not accept large orders until Sunday night, the Asian market.

On the stock side, stocks such as NYSE:GME and AMC Cinema (NYSE:AMC) plummeted on Thursday because of restrictions on trading by brokers such as Robinhood, but the "Reddit boom" made a comeback as the platform announced that it would resume normal trading on Friday. Short positions are still high, but retail investors have not run out of bullets.

On the evening of January 29th, Citron said it would stop shorting research and focus on long opportunities after facing huge losses. In addition, Melvin, an American hedge fund, lost 53% in January due to game post (GME) and other transactions.

According to the latest news, Robinhood, an American online brokerage, has updated its stock purchase restrictions, limiting the number of shares bought by AMC cinema to 10 shares, game station 1 share, Gauss Electronics 2 shares and Nokia 2000 shares; in addition, game post options contracts are limited to 5 and AMC options contracts are limited to 10.

The sharp rise in US stocks has already alarmed the US government. According to foreign media reports, the House Financial Services Committee and the Senate Finance Committee said on Thursday that they would hold hearings on the stock market. McSean Waters (Maxine Waters), chairman of the House Financial Services Committee and a Democrat, said: "We have to deal with hedge funds that have directly led to recent market turmoil as a result of their own immoral behavior. and how hedge funds and their financial partners manipulate the market for their own benefit, while others pay the price."

Why are US retail investors teaming up against short sellers this time? According to reports, Guo Jie, chief professor of finance at Durham University in the UK and executive director of the China Development Research Institute, said in an interview that the fierce confrontation between US retail investors and short institutions subverted the traditional order between the two in the past. this is related to the retail "herding effect", resentment between the two and the epidemic situation.

"the whole incident is more like the result of retail impulse and the 'herding effect'." Guo Jie said that individual investors tend to follow or even imitate the trading behavior of other investors. Individual retail investors show their profits after encircling and suppressing the short side at the initial stage, attracting other retail investors to join.

Guo Jie believes that the incident also reflects the outbreak of years of rivalry between retail investors and institutions, especially short sellers. This confrontation can be traced back to the 2008 financial crisis, when short-side operations led to the bankruptcy of many retail investors or even no fixed abode. Some retail investors may be forced to do so just to vent their anger.

Guo Jie said that the current Bubble is also related to the epidemic, with epidemic restrictions keeping people at home, and with the distribution of government aid, more individual traders are expected to participate in the stock market, further boosting liquidity. However, once the epidemic subsides and people start to go out more, Bubble is more likely to collapse. He believes that similar abnormal events in US stocks may occur in the short term.

The battle of retail investors has triggered great turmoil in the global development market. On Wednesday and Friday, the three major US stock indexes all fell 2%. The S & P 500 index fell for the first time since October last year, and the subsequent war of the century will continue to shape market sentiment. If the turmoil continues, it will be bad for the market. Goldman Sachs warned that a small portion of unsustainable speculation in the market could trigger a series of knock-on effects and lead to more severe volatility in the market.

Today, the US stock futures index has surged ahead of schedule. The early losses of US stock futures widened, with S & P 500 index futures and Nasdaq futures both falling more than 1% at one point. As of press time, the latest decline has narrowed.

This week, the global market will usher in a series of major events. In addition to the closely watched battle of retail investors, giants such as Amazon, Google, Qualcomm and Alibaba will also announce their results, as well as non-farmers in January.

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