What a time to be alive. Monday afternoon I did a little Twitter Live with Kai Hoffman of Soar Financial. At one point in the conversation Kai asked me about the First Majestic Silver chart (NYSE:AG), here is the link.

Yesterday, some of the Wall Street Bets crowd began posting "DD" on silver and the big silver short:

It just so happens that AG shares have also been seeing some extra short selling in recent weeks, enough to push the short interest up to 24% and make the WSB list of most shorted liquid stocks. The angry WSBers are hard at work on AG and SLV this morning:


First Majestic isn't some penny junior. This is a multi-billion dollar market cap silver producer with some of the most liquid shares in the entire precious metals mining sector. To move it up nearly 50% requires a good deal of muscle and that's exactly what has happened over the last 15 hours.

I don't have any deep words of insight this morning or great trade ideas, however, some thoughts definitely do come to mind:

  • Nothing is sacred. Throw everything you thought you knew away. The old models don't work.
  • If anything, the last year has been about disruption. Disruption of everything. And now that disruption has come to financial markets. Crypto is an attempt to 'democratize' finance and disrupt the old banking system. Wall Street Bets is disrupting Wall Street and the cozy Greenwich hedge fund world.
  • A massive short squeeze in silver and gold would be the ultimate disruption. I don't know if it will happen, but I do know it would be a helluva lot of fun watching it unfold and having a piece of the action.
  • The next revolution will begin as a result of censorship. Telling people, especially free people (US, Canada, Europe etc.), what they can and can't say is by far the best and fastest way to really piss them off. There are a lot of pissed off people today.

While I believe all of the above are very true, another part of me is scared as hell by what I'm seeing out there. What happens when every possible short squeeze has played itself out?

I'll give you a hint: it's what happens when you lose your footing at the edge of a cliff.....

There are no words for the level of risk taking happening today across markets and never before have I had so many people tell me they are day trading and asking for trading tips.

This has never happened before so there is no roadmap for what lies ahead. Please manage your risk and know that this will end eventually, and probably sooner than most believe possible. 

UPDATE:  We are seeing several brokers beginning to liquidate various client options trading positions and Robinhood has removed AMC, GME, and NOK from its app. 

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