A phenomenon is erupting across our trading screens, on AMC Entertainment Holdings, Blackberry and GameStop. In all of the years I have traded, invested, researched and participated in this market, I have never experienced a moment where the retail traders, have had the upper hand against the behemoth’s of the market. It was always the independent trader crushed under the heavy hand of Institutional Investor’s manipulation, that was left unchallenged by the securities commissions.
I have seen years of stock manipulation, trading irregularities fall on deaf ears at the securities commissions. It seem’s the market regulators were always on their “coffee breaks” when the manipulation occurred. Now that the deep pockets are complaining foul against retail traders, harsh rhetoric is being harnessed by the big names of the industry, with such vile condemnation as labeling the short squeeze as illegal, and should be “regulated”. Where was this language in 2008 when retail traders and investors were sent to the slaughter house on leveraged instruments, written by the institutions that were responsible for liquidating their investment accounts, and made many hard working middle class citizens homeless through the housing collapse.
Markets are supposed to be efficient. Market valuation is determined by supply versus demand. Many retail investors want to purchase AMC, BB, or GME stock, this is pure demand, there is no irregularity here. The demand is pushing the valuation higher, this is the response of an efficient market, there is nothing happening here which is in any context, illegal. The regulators should let the market respond to the metrics in which it is designed to operate. Supply versus demand equals price.
I believe this week is the week when the peasants with pitch forks have risen up against the aristocracy, the “Proletarian Revolution”. This is a revolt against the biggest and fastest wealth transfer (the pandemic and subsequent lock downs that have destroyed small business) in history, a grassroots uprising that might just really make the people in government give a shit about real people trying to live their lives and the immense struggle to just get by. If anyone noticed, the American dream is dead.
After the Dot.com crash, many retail traders of the early 2000’s tried on several occasions to collectively work together on stock forums to out play the institutional players, on companies like Nortel, RIM(Blackberry), Sierra Wireless and other technology firms. However they never achieved what is playing out now. Retail traders have all of the attention, now the question is, will this actually bring change to the industry and level the playing field?
Many WallStreetBets traders have already reported that they have experienced issues with their trading accounts. They claim they do not have access to trade or buy options on AMC, BB, or GME. This sounds like pressure from the industry trying to put a lid on the retail investor.
I created StockTargetAdvisor(STA Research) back in 2007 to empower the little guy, from small boutique investment firms to financial advisors, and retail investors, in order to give them access to the data that was kept from them. Analyst data was, and still is held close to the chest of institutional players. Myself and others in the industry over the years have been threatened with litigation to take down and stop reporting analyst data, as they insist it is owned by the reporting brokerages, and the company’s who are reported on, are concerned about their “brand image”. However, all research data is public information and every type of investor has a right to access that information..
The STA Research Team will continue our fight to supply, assist and support the retail trader and investor in their quest to gain equality in the markets with institutional investors.
Regards,
Don Lawrence
CEO, STA Research 
PS( STA Research is a small research firm based in Waterloo, ON-home of Canada’s technology center and home to Blackberry)
