SA's Wall Street Breakfast: Hunting the wolves

29/01/2021

Sourced from SEEKING ALPHA‘s Wall Street Breakfast released today:

The retail trading world is outraged at the trading limits imposed by Robinhood (RBNHD) and other brokerages yesterday, and questions are circling about the protections that should be in place for investors. While Robinhood cited clearing house requirements as reasons for the stoppage, it also said “these requirements exist to protect investors and the markets and we take our responsibilities to comply with them seriously.” Users were only permitted to close positions, leading the stocks to sell off during yesterday’s session. As the brokerage looks to reopen the trades today (see below), many of the WSB/Reddit plays are soaring again in premarket trade: AAL +12%, AMC +57%, BB +17%, BBBY +15%, CTRM +24%, EXPR +43%, GME +104%, KOSS +102%, NAKD +41%, NOK +9%, SNDL +12%, TR +8%, TRVG +14%.

Investors and policymakers alike lambasted the trading limits, including Dave Portnoy, Alexandria Ocasio-Cortez and Ted Cruz, accusing the trading platform of seeking to protect Wall Street’s interests at the expense of smaller investors. “We need an SEC that has clear rules about market manipulation and then has the backbone to get in and enforce those rules,” added Sen. Elizabeth Warren, a longtime critic of Wall Street. “You’ve got to have a cop on the beat.”

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