This is just a speculation, but I wonder if many of the winners are down due to funds selling some of their winners to cover their short selling losses.
I put this on the Apple thread as well, but I'd be interested to hear what others think about it. I was out for a couple of hours yesterday and when I came back the stocks I follow had dropped precipitously without an obvious reason. This Reuters article has an explanation:
GameStop, other retail darlings dented after Reddit group briefly shuts doors
January 27, 20216:00 AMUpdated an hour ago
excerpt:
Earlier in the day, amateur traders chalked one up versus Wall Street as hedge funds suffered heavy losses on short positions in GameStop, and regulators and financial professionals called for more scrutiny of trading fueled by anonymous social media posts.
In the latest skirmish in a week-long battle between Wall Street and Main Street, funds sold long positions in stocks to pay for losses shorting GameStop, contributing to a slide of more than 2% in Wall Street’s main indexes.
more at reuters.com
This morning, AAL reported an enormous loss and went up to as high as $30 (closed at $16.xx yesterday) as shorts were busy covering. It didn't stay there but it is still at $21.xx, bouncing around, on huge volume of over 70m shares. And it was only one of many airline stocks with much heavier than usual premarket volume, all of the ones that I follow up nicely. |
