The vigorous battle between Wall Street retail investors and institutions is still going on, and the latest one is aimed at "silver", but in the face of the frenzied wave, Goldman warns that retail investors have enough ammunition to continue to short the market or lead to the collapse of financial markets.
Wall Street retail investors set their sights on "silver"
The wave of air pressure that began with the "game station" continues, and retail investors who have tasted the benefits of this stock have a new sniper target. Earlier, many influential investors said in the forum that retail investors can push up the price of silver by continuously buying silver ETF (SLV). Recently, the inflow of silver ETF has risen sharply.
With the spread of the retail investment boom, spot silver rose sharply at the beginning of trading today. As of press release, spot silver rose more than 6%, and at one point it rose 7% in intraday trading.
It is worth noting that on Sunday, several major US precious metals retail websites suspended the sale of silver products, including Money Market, SD Bullion, JM Bullion, Apmex and Wal-Mart North America. They all said they could not accept new orders until the silver Asian market opened on Sunday night in North America.
Retail demand for silver bars and coins surged over the weekend, which was seen by foreign media as a sign that the "frenzied buying" wave triggered by Reddit has spread from last week's volatile commodity market to physical assets.
In addition to silver, the attention of American Airlines and dog coins has also increased significantly. American Airlines is likely to be targeted by retail investors, according to Market Watch Day, a news site owned by Dow Jones. At one point, the stock soared more than 30% at the start of trading on Thursday. American Airlines announced on its SEC website on the 29th that it had reached an underwriting agreement with four investment banks, Goldman, Barclays, Flag and France and Pakistan, and planned to raise up to $1.118 billion in the placement of shares.
Some investors have listed American Airlines as the "next game station" because American Airlines ranks first with 25.5% of short positions among the six largest airline stocks in the United States. This is a typical WSB concept stock with low prices, low market capitalization and high short positions.
In addition, the digital currency originally created as a joke, the dog coin (Dogecoin), soared more than 800% after it was discussed on the Reddit forum to make it the same cryptocurrency as GameStop. According to Coinmarket cap, the dog coin increased its market value or total value by about US $7.17 billion within 24 hours at 12:03 Singapore time on the 29th. It has a total market capitalization of $8.2 billion, making it the ninth largest cryptocurrency.
Goldman warnings continue to close the air or cause financial markets to collapse
The short-selling of US retail investors has severely dampened market sentiment, with the three major US stock indexes falling 2 per cent on Wednesday and Friday, but the worst may not be coming yet. Goldman warned that if the frenzied short market continues, US financial markets will collapse.
According to Goldman, the worst shorted stocks soared 98% in the three months to Jan. 28, surpassing even the peak of 72% during the Bubble period on the Internet, which means the current market is extremely frenzied. However, it is slightly gratifying that the total short position is currently equivalent to only 1.5% of the total market capitalization, which is at least a 25-year low.
Goldman believes that retail investors have plenty of ammunition, that US household savings are high compared with before the peak of US stocks in 2000, and that the Biden administration is planning a new trillion-dollar stimulus package.
In addition, Goldman also said that a small number of unsustainable speculation in the market could trigger a series of knock-on effects, leading to more serious market volatility. David Kostin, an analyst at Goldman, warned that US stocks had shown a pattern of low trading volume and high concentration in recent years, increasing the risk that the unwinding of a fund could snowball across the market.
It is worth noting that the three major US stock index futures all fell sharply before trading, with the Nasdaq and S & P 500 index futures all down more than 1% at one point. As of press time, the three major stock index futures are all down more than 0.5%.
