The weekend is: Robinhood and the happy self-proclaimed “degenerate” Reddit

Individual traders have teamed up via Reddit’s WallStreetBets bulletin board (where some users refer to themselves as “ degenerate ”) to buy stocks of very small stocks, sparking a furious discussion between hedge funds and other short sellers, to buy stocks and hedge their short positions. . The binge eating drove a 1582% annual increase for GameStop Corp. GME,
+ 67.87%,
501% by AMC Entertainment Holdings Inc. AMC,
+ 53.65%
y 107% for Bed Bath Beyond Inc. BBBY,
+ 5.02%

at 10 a.m. ET on Jan. 29, to name just three examples.

GameStop fell below more than 100% of the stocks in question. But there is another way to measure short interest rates: the dollar. By this action, Tesl to Inc.TSLA,
-5.02%

it was the worst performing stock, with $ 60.9 billion bet against the stock at the Jan. 27 close at $ 60.9 billion.

Brett Arends wrote an open letter to newbies who (hopefully) benefited from the short press in which he praised them, but also reminded them that investing is not a game.

Here is more brief coverage of the bruises:

• According to the data provider, short sellers have lost $ 54 billion net in U.S. positions so far this year.

• It’s not just GameStop – here are some of the other heavily shortened actions that shoot higher

Robinhood’s Great Retaliation and Backlash

On January 28, Robinhood stopped buying GameStop shares and allowed clients to continue selling shares. The move was very unusual. It is normal that the exchanges are suspended all Trade a company’s stock when the big news has completely disrupted trading. John Buckingham, editor-in-chief of Prudent Speculator, who has three decades of experience in money management, said he “has never seen a situation” where a broker would stop either. side of the business.

Other brokerage firms have restricted trading in GameStop, AMC and other stocks.

Robinhood changed course and the GameStop shopping frenzy resumed on January 29. Unprecedented short-term reduction activity and trade restrictions and responses to them continue to grow. So come back to Market Watch for the latest developments.

More to consider in the midst of small bruises

Many inexperienced investors have brought stocks to many previously unfavorable stocks skyrocketing. But even if you are a seasoned investor, you probably don’t know all the new terms that are being talked about.

William Watts explains why seasoned professional investors are concerned about the overall health of the stock market, given the rampant buying of heavily truncated stocks and the options trading that comes with it.

More market coverage:

“Like the Berkshires, but warmer”

Everyone wants to find the perfect place to spend their golden years. Silvia Ascarelli suggests three possible locations for a couple living in northern New Jersey looking for a warmer region with lakes, mountains and, hopefully, skiing.

Try the MarketWatch tool Where should I withdraw? For your own personalized research.

Beware of advice on saving and spending in retirement

Richard Quinn breaks through some of the stereotypes that are given to people who make eggs for financial independence. For example, if you are giving advice on how to withdraw or spend a certain percentage per year, you will ignore someone’s spending. Quinn shares a short list of things to consider when planning and preparing for retirement.

Learn more about retirement and life:

Investments in clean technologies

The transition to clean energy is just beginning. Jeff Reeves lists five exchange-traded funds for investors who want to travel.

Swim in debt and hopefully get out

Alessandra Malito and a financial advisor help a 50-year-old woman who writes that she, her husband and their son “live hand to mouth” and don’t know how to save for retirement.

Janet Yellen and your retirement

With a new president, democratic control of Congress, and Janet Yellen as secretary of the Treasury, they expect changes here to help Americans better prepare for retirement.

Stock selection from a five-star portfolio manager

Barbara Kollmeyer interviews Tom Plumb, manager of the Plumb Balanced Fund, who recommends MercadoLibre Inc. MELI.
-3.54%