Insurrection in the Markets?

The markets have acted strange lately, with hedge fund hates going to the moon while their darlings get battered. So much damage has been inflicted on hedge funds that the Biden administration has found it necessary to monitor the situation. However, conservative and libertarian commenters are besides themselves with glee. For every hedge fund being carried out on a stretcher, there's a hushed hurray making the rounds. It very much looks like an army of rag tag speculators ganging up against their pet hates.

Now that it has been revealed that Nancy Pelosi has put about 1 million dollars into Tesla call options, it will be interesting to see if this rag tag army will crush Tesla just for the fun (and profit) of it. The coming days will be interesting in this respect. Not least because things are poised very much in favour of a swift and effective attack. Nasdaq call option volumes are at an all time high, so there's no lack of long positions to shake out, and Tesla looks weak, making it an especially tempting target.

The only problem with Tesla is that it's very big, so it requires a lot of muscle and determination to crush it. However, if we are indeed seeing an army of speculators determined to see their political opponents cry, we may well see them band together to take down this financial giant. If so, we can assume that it's at least in part a political statement.

Nancy Pelosi

By US Department of Labor - L-15-04-14-A.569, Public Domain, Link