The Investment Thread

superchuck500 said

So question - why would SEC looking into trading activity at GME/AMC cause prices to fall?


https://www.marketwatch.com/story/m...scloses-sec-probe-into-the-frenzy-11623277586




I thought the premise here wanted that and that regulatory review would expose the naked shorting, potentially leading to closing of short positions either in anticipation of regulators or due to actual regulator activity.

Click to expand...

It isn't causing prices to fall. The prices are "falling," because the activity is continuing. They're still borrowing and shorting. When you study the Level 2 data, live feed, you can clearly see that most of the sell activity is dark pool based, in fact, yesterday 63% of the activity on the stock was dark pool.

The sales inflow has been greater than the outflow every day now for weeks. The price action currently is all artificial.

Again though, I would not exactly say prices are falling after a 500% run-up ends up with a consolidation between 400% and 450% the following week. It's all relative.