tom: tracy alloway on short notice, thank you so much. in free to of pimco is with us. we had tracy come on -- gene frieda of pimco is on with us. we had tracy come on to answer questions we know you don't want to. i have to ask you -- we understand the theory behind this delta hedging, being short gamma. you and i can draw the lines and connect the dots. it took francine's -- two francine's good question -- is this at a point with modern trading and with social media and messaging that the regulars have to -- that the regulators have to redraw the dots and the lines? gene: all i can say, tom, is i am glad i am in currencies and bonds. this is really outside of my sphere. tom: we will continue, gene frieda with us this morning. so much going on here. we are going to stay on this gamestop story. for anybody on global wall street, including the major banks, this has gone from an interesting study to a must-understand what is going on with gme. there is a fed decision today. your mom powell will speak. i, he scheduled -- jerome powell will speak. michael mckee scheduled to

you can hear more of our conversation on the latest episode of the outlaw podcast with tracy allowayf, on apple or spotify. romaine: don't forget, there's another podcast out there, not quite as popular, it is called "what'd you miss?" this week. you can also subscribe to wherever podcasts are sold. caroline: we should just be promoting romaine bostick. 20 years. joe: the 20th anniversary today of him being at bloomberg. caroline: how are you celebrating? romaine: underground party. joe: turn off the camera. romaine: don't tell de blasio. joe: this is bloomberg. ♪ ♪ emily: i am emily chang in san francisco. coming up, retail investors at it again. bidding upstairs -- up shares of gamestop. this after robinhood calls in a one million-dollar lifeline following my interview

he was a recent guest on the out loud podcast i cohost along with tracy alloway.actually talked about the black death on that one, another happy conversation. check it out on the terminal or on spotify. always trying to entertain. caroline: lighten the mood. meanwhile, that's all for "what'd you miss?" joe: "bloomberg technology" is up next in the u.s. romaine: and "bloomberg daybreak: australia" is up next in asia. this is bloomberg. ♪ emily: i am emily chang in san francisco and this is "bloomberg technology." coming up, and the 24 hours since pro-trump reporters stormed the u.s. capitol, he has been suspended from facebook, twitter and multiple club platforms, putting the president off from his base. is it enough? we will speak to the former ceo of reddit. and investors hot on the coals.

tracy alloway, bloomberg's editor.ring in a strategist to talk us through what she things about this phenomenon this week. i can't not ask you about this. what is happening? is this simply profit-taking? what is it? >> dank you for having me. -- thank you for having me. my primary focus is asia-pacific businesses and stocks. it seems like retail day traders over the past few days have sparked a new round of profit-taking on wall street. there seems to be a lack of evidence for now to warrant a deeper, meaningful pullback in u.s. assets, and of course, there are huge volatilities in some of the small-cap fringe stocks that were propelled by retail traders, which is causing concern among some of the voters as well as regulators, but i think in the long term, the price went back to fundamental levels, which will likely lead to risk for retail traders, especially those incan syrians -- especially those inexperienced ones. i think traders should be very cautious making decisions when looking at those trades. haidi: hang tig

this sort of yolo trade best explained by the rocketship emoji or is tracy alloway says, of the fundamentals't matter as long as you get the flow in from reddit users, it can beat out the fundamentals. the fundamental picture has been somewhat captured by short-sellers in most recent days. this blue line is short interest in those had a way of going against the establishment or at least that's how reddit users had framed it. they decided to go in and buy a bunch of co-options. what you get is this now technical picture. you have the dealers on the others of the call option who need to hedge but they need to buy shares and then you have a short squeeze as well which only goes further to up the price as they have to abandon their shorts after seeing increased borrowing. you get this effect where it really snowballs is the price picks up. it's not the only stock we've seen this happen to. >> thank you so much. we will have plenty more more on this story. also coming up we talk italian politics. giuseppe conte on his way to offer his resignation. we will see if he manages and we will discuss it

anna: tracy alloway from bloomberg news. 100 million shares traded in gamestop yesterday. get into a conversation about the stocks to keep an eye on this morning including some from the aviation sector. dani burger joins us with a look at stocks we are watching. >> easyjet is one of them. seeing their revenue plunged 80%. we saw the coronavirus wiping out all of their gains. they are also seeing their capacity is going to operate around 10%. he qt -- eqt having to update their price, one of the dangers of doing a take private. the rest of the market might rise higher to meet that. finally, this is one of those stocks that is getting messaged about in the reddit forms. adrs in the u.s. rallied. they did drop somewhat post-market when reddit had that blackout period where the wall street bet forum was frozen momentarily. but nokia up already 11% premarket. catching on to some of the frenzy that has been going on in the u.s., really just hitting home that point tracy was making about reddit trade going global. matt: thanks very much. dani burger talking about the stocks we ar

i will explain, but it is the yellow trade, probably best explained by a rocket ship mode or tracy alloway'sf everyone piles on, that supersedes any fundamentals and the fundamental picture for many people was the short interest people. gamestop, it is in a mall, sells video games, there is no way its price can be sustained very high. reddit picks up on that, it gets mentioned on messaging forums and people put call option bets on the stock. this went beyond tesla's when it hit over one million, so you not only have dealers who need to hedge against this call volume and need to buy the underlying stock, but as underlying stock raises, you get short-sellers squeezed out, market losses so it is too expensive to borrow and they relinquish their shorts, which has a snowball effect, which is what we see big rallies in names like anna: this. anna:anna: interesting to see this play out in front of your eyes, especially when you think it can't, there must be other old economy brick-and-mortar retail stores that might be wondering if they might go in this direction. where do short-sellers stand now,