AMC And GME Have Short Squeeze Retail Armies Gathering Again
The Retail Trading armies of Reddit are still gathering traders by the thousands. The largest and most well known, WSB or (Wallstreetbets) has 9.3 million Reddit users currently. The smaller and more silent groups of retail traders appear to align themselves with the members of WSB by sending thousands of their members into the mix as specific WSB tickers start to increase in volume and price.
With the already known 9.3 million users of WSB and the thousands, if not hundreds of thousands of other users combined from the smaller groups, one can only guess the actual number of users involved in some of the retail squeeze events this year. Particularly those of AMC and GME.
Just recently, news that theaters in New York will begin re-opening at a limited capacity ignited and renewed the interest of AMC with retail investors, and once again the two tickers have started a climb. GME is back on the radar as well, soaring 104% for the day just yesterday.
GME was the original stock that got the media headlines. It was also the stock that thousands of retail investors piled into in an attempt to force a short squeeze on Melvin Capital, which was responsible for heavily shorting GameStop and AMC Theatres. Since the original squeeze event with GME, smaller market cap stocks with high short interest have started to become all the talk with the smaller retail trading groups.
For example, the lesser-known, yet growing fast, retail trading group SSA or (Short Squeeze Army) which has now topped 6 thousand members, organizes their members to focus on a single stock of interest that is selected as a ticker to focus on. Their original outline was to allow members to vote inside the group to select the stock tickers to focus on.
That has recently changed to having only the most experienced traders select tickers via a pre-screening process and having set criteria for short interest and float size. This is due in part to the smaller size of the group.
Some users have stated that they prefer the smaller group size as their voices are more easily heard throughout the day while communicating with fellow traders.
Neither of the Reddit retail trading groups has changed their initial interest in AMC and GME since January. So is this just round two of a continuing battle between retail traders and hedge funds or is this type of new generation retail trading here to stay?
Judging from the continued growth of WSB or even the smaller SSA, it seems that organized group trading may be here to stay. Their popularity is growing and their member growth rate is a reflection of that.
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