Dow Plunges 1,000 Points After Reddit Traders Storm The Stock Market–What Happens Next?

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'The market is not broken, but recent events have revealed some cracks,' one expert says.

Despite blowout corporate earnings and more solid news on the vaccine front, the stock market just posted its worst weekly performance in three months after Reddit traders squeezed Wall Street's elite out of billions of dollars, sending prices of heavily shorted stocks up to atmospheric new highs and fueling concerns over market frothiness–but experts seem in broad agreement that the bull market can rage on.

McMillan eschews concerns from other experts that the Reddit-fueled price mania could be a sign the market is in the middle of a bubble akin to the dot-com era in the late 1990s, but he says"crackdown" by regulators is likely. Like McMillan, LPL Financial Chief Market Strategist Ryan Detrick is also adamant that the week's events are not indicative of a market bubble or impending correction, though he concedes recent events point to"excessive optimism in certain segments of the equity markets," particularly in big-cap names losing capital from institutions covering shorts at sizable losses.

 

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Trump's fault again?

I’m interpreting this as investors don’t like when the middle class flex their purchasing muscle. Maybe short sellers are the real problem?

AMCtothemoon 🚀🚀 Screw the hedgefunds

aldotjahjadi8 “What is an ocean but multiple of drops.” Don’t underestimate the power of crowd.

They get REKT!!! 🚀🚀🚀 and you're next 😎

Reddit saves companies from hedge funds and make millions in the process

Lovely !

Fare Market is fare for all. I think its great that normal everyday people kind of proved that it is a free market.

The market is absolutely broken. Brokers had to shut down purchasers because of a lack of liquidity. What part of that isn't broken?

lol. It's cute you think Redditors are responsible for tanking the Dow. You're a financial magazine, yes? Very cute.

Yeah blame reddit for this... you know damn well the FED and their endless printing has been feeding this monster of assets bubble...

$BBBY Bed Bath Beyond now has an 82% short % of the float!!! It increased from 67%. Company ANNOUNCED an accelerated $375 Million Stock Buyback before Feb 27th!! It's running until then!! 🚀🚀🚀🚀🚀🚀🚀

It’s not about the money. It’s about the message.

There's a lot more going on than Redditers pumping up one stock...

Ya but they are pumping up the stonks

cire89114721 David is once again kicking the giants azzz

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