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Re: janice shell post# 6150

Thursday, 02/25/2021 10:23:38 PM

Thursday, February 25, 2021 10:23:38 PM

Post# of 19959
This is and will continue to behave in a manner that is quite different from penny stocks. With penny stocks, it's impossible to have a gamma squeeze. We are dealing with a historic stock market event; many people don't understand it. We have here the perfect conditions for the following:

1. 300+ Million active scavenging due to Failure to Deliver (FTD) on previous short covering. Those purchases need to be accounted for, and if they're not, they have to be bought via at-the-market prices.

2. 13+ Million calls that will finish in the money this week. Those need to be executed by tomorrow, resulting in unprecedented share-buying. Penny Stocks don't have options.

3. Share covering from recent to new shorts that hit the new margin requirements (yes, they have been increased for this particular stock). Margin requirements are not this high for any other stocks, not to mention penny stocks.

4. 10M Social Media personnel all pushing this wave. Penny stocks have never had that level of backing.

5. Impeccable media attention and subsequent Fear of Missing Out (FOMO). You don't have this with penny stocks; they wouldn't cover it.

6. Machine Learning and algo-trading fueling this frenzy based on technicals and momentum

All of this leads to one thing: the most perfect gamma squeeze of all of our lifetimes, as well as a likely market correction based on short-liquidation of other positions due to all of the above.

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