/biz/ - Business & Finance

>>27116597
But here's what Citadel Securities' retail flow looked like in GameStop this week: (pic related)


Source: Citadel Securities

Retail investors were net buyers on Monday but net sellers for the rest of the week (through yesterday), and all in all quite balanced: About 49.8% of retail orders (that Citadel Securities saw) were to buy, and 50.2% were to sell.

What do you make of that? One reading would be: "Retail investors on Reddit might have started the GameStop rally, but they're not piling into this stock now, and the price action this week is coming from professionals." Or as one Twitter user put it, "past the retail ignition, the rocket ship was mostly intra-fast money warfare." This story doesn't exactly tell you who the professionals are, whether they're traditional Wall Street (hedge funds, etc.) or algorithmic high-frequency traders or just semiprofessional crews of day-traders who don't access the market through traditional retail brokers. Someone other than Robinhood traders, anyway.[2]

You could tell a related story like: "Retail investors on Reddit started the rally to squeeze professional short sellers, and then this week the professional short sellers capitulated and started buying the stock at even higher prices from those redditors, who claimed victory and took profits." This is probably true, at least in part. It also matches the popular story reasonably well, except that in the popular story the short squeeze is in the future, and the Reddit traders are supposed to be holding firm so that short sellers can't cover even at recent high prices.