John, Gamestop, Jonathan Farrow discussed on Bloomberg Surveillance
Kean and Lisa Brown. His son Jonathan Farrow. Futures down eight on the S and P 500. Tom Keen. Take it straight to the relax will please. What is die Aggress your folks and say Thank you to our team yesterday admit the chaos and we're gonna drive forward again. Adult entertainment. We will describe the shorts. We will describe the longs We will describe these important issues and tell but also and I know I don't want to step on Alisa. You're John. But did you know we may actually look at the unemployment of the United States of America is mistress quickly before you get too serious. You are redefining adult entertainment this morning, something that's for sure. But you mentioned last figures. So it Go there. John Gamestop through 500. About an hour ago. I can see it's on real Felisa, the real business 8 30 eastern. Well, it actually goes together, and I will tie the stories together this way, because there is a real populist anger underpinning the whole game. Stop saga if you take a look at the chat rooms Stick it to the man is the theme Whether that's driven by manipulators out there who are just trying to push their view. We will discuss that, but really underpinning this all is an economy that is struggling. A 30 a. M U. S initial jobless claims. We're expecting another print of near a million people filing for unemployment, the expectation being 875,000 coming down a little bit. The expectation is from last week, but not that much. Highlighting the need for more assistance. 1:30 p.m. President Biden is signing an executive action or two or three or 10 targeting access to healthcare question That really we need to address is his use of executive orders. He has been signing as many executive orders as he can The New York Times coming out with an op ed saying, slow it down, pump the brakes and try to get some sort of congressional consensus. That definitely becoming a growing concern. 5:10 P.m., the Reddit co founder, Alexis Oh, Haney into speaks on Bloomberg Television. This goes back to the game stops story. The idea of these chat boards and what kind of role they play in fostering some of these huge run ups in the stocks. What kind of regulatory action What kind of oversight is necessary at a time when people view this as populists as the common person? Just voicing their opinion and their view, John I love chairman Pounds reaction to this hotel yesterday in the news conference before we get to the right story. Tom King was asked about this several times. Just found him screaming. Are you serious? We've got nine million people Unemployed. Yeah, with this far away from getting back to full employment and you want to talk about games Stop. I'm so glad you brought the subject Two things first. He did a Fauci yesterday where you could tell he was genuinely more relaxed than he was with the previous presidents. No question about that, but also John, As you mentioned, there's a point about two thirds of the way through where he lost it, You know is as much as Chairman Paul can lose it. He made really clear. Come on. There's 9 10. Million people were short. Run jobs and nothing else matters. I do suggest Gina smile. It's first question was appropriate and he stepped aside nicely. I would agree with the futures this morning with down seven on the S and P 500 off by 2/10 of 1%. Let's get two things cross that set Your yield on the 10 year briefly Satur 1% this morning and changed at 1.77% in foreign exchange. Euro dollar. 1 21. Commented about 1/10 of 1%. But you don't care about that. Do you know they only care about one thing this morning. Once again some. Yeah, There's no question about it. I mean, John, Here we are. Why don't you bring in remain here whose toe and rested and ready to go? I mean, come on, John. This is serious stuff and remains really dive dove into it. Pre market prices remained only one place to go to start. And it's not including futures right now. Gamestop. Of course, John. It's all about games. Topic closed at 3 47 yesterday. That's up 140%. There was sort of a brief sort of chill that went through the market. Gamestop actually dropped all the way down. The 3 11 If you can believe it in the post market, though, this morning I got above 500 right now, Sitting up about 32% around 450 bucks 460. If you will, we should point out to that. You know you wake up in the morning now. I mean, the old days used to, you know, John used to check shot down futures to see what was going on. Now you wake up, you look at the red it boards. This is what they're talking about. Gamestop sundown growers That's basically penny stock of a cannabis company that nobody really paid attention to until a few days ago. Up 61% here and AMC up a tree. 6% anyone? It was up 300% yesterday. Well, yeah, Slumber remain. You're in the afternoons, and it's very important for us to understand his long short in the behavior of a short squeezes different remain in the morning. And during the trading day. What do you enjoy? Wiesenthal observe yesterday. What was the behavior of the long crew? The guys in the coaches. I've been defending him all morning. What was their behavior yesterday after if you want, sort of a good microcosm of what's going on. Look at the price action may be the last hour, So we're trading what you started. You see, he started to see significant sell off in some of these names. But as soon as you would drop a couple of bucks, he would see a flurry of activity. A buying activity come in to push this back up. Now. Who's that? Buying now? The general theories that has to be some of this Shorts probably trying to cover but this is the thing now, at some point, the marginal return between that drop down and then that pop back up is going to get smaller and smaller, and eventually this will run its course. At least that would be the theory that she was generally subscribe to you remain, is also a question about the call options. The role of derivatives in driving a lot of this Sorry Ponds Act, pointing out that nearly 38 million call options traded yesterday, the most ever Can we get a sense of what proportion? This is the retail investor really? And how much this really is professional, sophisticated investors taking advantage of this sort of mass wave this mass hysteria and call to invest in specific stocks. Well, the easiest way is to look at sort of what the size of these orders are with regards to the number of contracts being bought, and generally we are seeing them kind of in the 10 or below, which would seem to suggest This is mostly retail traders. I could tell you right now. We talked about this on the show last night. If you're really trying to make sense of the price action and draw a direct line, either back to a hedge fund or back to an individual trader, you're gonna have a hard time doing this. Everything is really skewed right now, And we actually had a couple of short sellers on our program yesterday, including Greg Gabrielle Greco, who talked about this Is that right now, a lot of short sellers. They're still active in this market, but they're really going there bending over backwards to really obscure what they're behind right now. Absolutely..