Here's the Reason for the Massive Intraday Stock Price Volatility Experienced Yesterday that Will Manifest Again in Today's Markets
Today is options expiration day with stocks, and as one of the larger OpEx days we’ve had in a while with $5 trillion of options expiring, especially loads of 21 June dated calls on AI stocks, this is the reason for loads of intraday price volatility on US stocks in yesterday’s market and the reason why loads of stocks will also experience very price volatile trading sessions today as well. One only need observe intraday price action on the top traded stocks in the US stock market yesterday and today to understand that there is relentless manipulation of stock prices by the Wall Street firms that often contradict all logic and sense in driving stock prices to absurd price levels at times. And we all know that what goes up must come down, so allow this to be a warning to those that have joined the sheep herd narrative that many of the most popular shares can only go higher in price in a US election year. As an example of one stock that recently experienced absurd fluctuations in price due to its price being manipulated by options positions, see the below chart.
Recall that before Gamestop announced its earnings and its price was pushed violently higher by price manipulator Roaring Kitty and his minions to $64 in pre-market trading, I stated that its share price would collapse after Gamestop announced earnings as such absurd price manipulation cannot win over reality when a company clearly lacks any management leadership as reflected by its inability to adjust its corporate vision to adapt to a rapidly changing landscape after having had years to do so. And like clockwork, after Gamestop announced its earning, GME has now plunged since my prediction, by 60% in share price in just a couple of weeks.
But that didn’t stop traders from piling into an absurd amount of short-dated, massively out-of-the-money GME calls at $95 and $100 a share, based upon a delusional belief that a few sentences by Roaring Kitty about his faith in GME would be enough to propel GME’s share price back into triple digits despite any rational analyst’s belief that its earnings release would bury its share price. And now, as one can clearly see in the below chart of GME options, strike prices and open interest, with more than 90k calls still open at a $95 strike and nearly 150k calls still open at a $100 strike (one can see the open interest at these strike prices circled in white ellipses below), with the majority of them set to expire by the end of this month.
No doubt, delusional investors opened up such enormous derivative positions in Gamestop due to their singular delusional belief that their guru could very rapidly pump up GME to triple digits upon his return, allowing them to reap massive gains with zero analysis other than a faith in a guru to lead them to the promised land. Obviously as is the case now, the bulk of hundreds of thousands of GME call options are set to expire worthless at the end of this month, with the big banks thanking these Roaring Kitty minions for their delusions in being able to so easily skim all the premiums associated with these hundreds of thousands of call options.
As I stated in the above aforementioned article, I publicly published warnings about GME’s imminent crash in share price on 7 June, and stated that one can fight a battle and win against the Big Boys once, but try touching them a second time and they will make it a point to show you who is king as there are no bigger manipulators of asset prices than Wall Street bankers.
Above: Gamestop Open Interest and Strike Prices, Calls/Puts as of 20 June 2024
Investor Delusions Are Not Limited to Meme Stocks, But Extend to Gold, Silver and Bitcoin
Likewise, every time I provide BTC predictions in which I state Michael Saylor has no idea of how to properly predict BTC prices every time he provides absurd 6-digit BTC price predictions that he calls imminent and I push back on his predictions by accurately stating that BTC prices will stay within the pocket of $65k to $70k as I did last month here at this newsletter, the army of BTC HODLers claps back against me with all their delusional ferocity by stating I have no idea of what I’m talking about in my predictions. About a week ago, on another one of my platforms, I publicly reiterated that I observed nothing in the behind the scenes action in BTC markets that would compel me to deviate from my last month price prediction, and that BTC would stay in the pocket of $65k to $70k for the remainder of this month as well. Of course, BTC HODLers hate these predictions and most times, clap back against them. And despite the literal hundreds of times I’ve provided accurate gold/silver price predictions every week for the last three years (on my patreon platform) that have come true and exposed similar price predictions of imminent price launches of gold/silver to the moon as absurd, as there have been plenty of gold to $10,000 and silver to $500 predictions issued over the years from 2009 until today, one thing remains the same among all delusional investors.
The most delusional of all investors are those that don’t acknowledge that all asset prices are manipulated, whether these assets are gold, silver, bitcoin, or AI tech stocks, and all mistake luck for skill when they are able to ride price surges higher on the price manipulations for profit.
Note in the above statement I only stated that delusional investors are “able to ride price surges higher” for profit, but did not mention that they ride price surges downward for profit as well. Why? Because if they ride both volatile and significant price surges higher AND lower for profit, they are skillful traders and not lucky delusional investors that mistake their luck for skill. But one thing is for certain, the subset of investors that are so delusional that they can’t understand how they may have benefited from price manipulation of the assets they hold, and conflate pure luck with skill, will almost always lose the bulk of profits gained from luck, or worse yet, ride profits all the way down to losses, when the manipulators decide that it’s time to take back the profits they gave for free to the investors that they do not wish to see benefit from their manipulation.
Mark my word, this day is coming for those investors that have recently ridden a manipulated price wave higher in some specific assets and that believe they will ride this manipulated wave even higher into retirement. Don’t be like the Roaring Kitty minions I tried to warn to exit their GME positions before it collapsed by 60% and that completely ignored my warnings because of a delusional commitment to a demagogue.
On this very newsletter, I informed my paying subscribers during the Chinese New Years this past February that gold and silver had respectively put in their bottom prices for the year at $2,000 and $22 per ounce. Today, gold stands at $2,364 and silver at $30.61 for 18.2% and 34.4% gains for the easiest gains of the year as I explicitly stated right here in this newsletter this past February that those prices would be the bottom prices of 2024. Despite this, many paying subscribers, from comments on my published articles that followed, completely ignored my guidance to buy physical gold and silver back then. And this is what happens when we don’t understand how and why the Wall Street bankers manipulate asset prices. In addition, unfortunately, due to the terrible analysis in gold/silver markets to which we’ve been incessantly exposed over the past fifteen years, when analysts repeatedly issued predictions of $10,000 gold and $500 silver that never came to fruition, now that gold and silver are set to surge to even higher prices than the current ones after a brief likely slight consolidation in prices, I am near positive that many will miss out because of the following. For fifteen years, we’ve been conditioned to ignore the flood of “gold/silver prices to the moon” predictions simply because they never materialized in the past and such price predictions were absurd at the time. Now that there is a much greater probability that some of these big gold/silver price predictions will finally materialize over the next few years, our past conditioning will undoubtedly cause many of us to keep overlooking them.
For those that believe there are no parallels between the warnings I provided to Roaring Kitty’s minions to exit their GME positions before its price collapsed from $64 a share and the warnings I’m providing today (as of course there are those that will falsely believe there is zero in common between Roaring Kitty’s manipulation of GME stock price higher and the Wall Street manipulation of certain stocks and asset prices higher during this latest quarter), I can only state the following: If you truly believe this, then you have a lot to learn in your journey about Wall Street manipulation of asset prices. Perhaps, you are the prime candidate that needs the knowledge I provide in Course O (Do Bankers Suppress Gold and Silver Prices) of my recently launched Tomii Academy, for the knowledge I dispense in that course can be extended to all assets that actively trade on Wall Street.
A consequence of telling truth to delusional people is that the delusional people will hate you like no other. I’ve always felt that I receive some of the most hate in the investment world for my commitment to telling the truth, and as dictated by our current global phase of the Great Deception, very little financial, monetary and investment truth persists online right now. Furthermore, what little truth in the financial analytical world exists at the current time online will either likely completely disappear within the next five years as I predicted here or become excessively hard to find as internet search engines will bury the truthful sites. I’m not complaining about the constant clap back, as I grew up in Philly and no one that truly lived in Philly for many years can survive if one is soft. I’m just stating a fact that the least popular person in a (financial) world of delusion is the one that tells the truth, which is also why I have warned against following the guidance of those that have hundreds of thousands to millions of paid subscribers on finance social media. This world is a certified echo chamber of poor financial guidance. Though I don’t have the time to listen to them, I’m almost positive, given this known unbreakable maxim in the world of finance, that they are constantly vomiting nonsense in terms of investment guidance to their followers.
In any event, I always let the results I produce do my talking. And if you click on this link, you would discover that the results I yielded to my paying community in 2022 would have ranked me as the 4th best fund manager in the world that year were my portfolio a hedge fund. Additionally, from the end of 2021 to May 2024, I returned yields to my paying subscribers that were a 7X multiple of the yields returned by the US S&P 500 over the same investment period (all yields documented and confirmed in the archives of my patreon platform). So truth always crushes delusion in the investment world, every…single…time. Should you desire to learn how to do this for yourself, make sure you visit my newly launched Tomii Academy online academy with a full curriculum of 20+ comprehensive curriculum of topics of investing, building wealth and improving critical thinking skills.
Thanks as always, John!
Keep speaking Truth John...there is no hope in lies....