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On January 29 2021 09:28 LegalLord wrote:
GME almost back to yesterday's close in after-hours trading. Can't stop won't stop!
Though, I hear Friday was the magic day for many calls to expire worthless at $300, so the market manipulators have gotten what they wanted.
No way the initial people who shorted borrowed at $300. More like $50, and there is not enough stock selling right now to buy to cover their bet. There can’t be a squeeze if there is no volume. As long as the stock stays above $100 by the end of the day tomorrow (assuming that’s when the loan is due) funds will go bankrupt. This could be why the market is down as a whole because funds need to liquidate investment to cover
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AOC is fucking streaming on twitch talking about the whole GME thing.
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On January 29 2021 10:24 BlackJack wrote:
Never thought I would agree with tucker Carlson on something but he just tore into the hedgefunds and robinhood for 15 minutes straight then had dave portnoy as his guest who tore into them some more
The entire segment is gold, luckily Fox posted the entire segment online for us foreigners.
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I couldn't believe this was a real article, I'm not surprised MSM is attempting to defend the short sellers but calling them heroes is pretty laughable.
https://www.forbes.com/sites/johntamny/2021/01/28/ignore-the-populist-gamestop-hype-short-sellers-are-heroes/
Ignore The Populist GameStop Hype. Short Sellers Are Heroes
Actually, if it’s true that a few hedge funds were wiped out by GameStop’s surge, it’s a reminder of how heroic hedge funds are in the first place. It’s a reminder that if they didn’t exist, we would have to invent them. Think about it.
There is arguably no riskier market move than to short a public company’s shares. In doing so, a public-company skeptic borrows shares in the marketplace, pays for the right to borrow the shares, then sells them.
“Serves them right,” some will say. “Short selling is a seedy act whereby big investors attack an innocent company and drive its shares down to nothing. Maybe GameStop will serve as a lesson so that this vindictive form of trading ceases to exist.” Let’s hope not.
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Oh man it’s been a while since I’ve tuned into the news on TV. This Tucker Carlson guy is spitting mad straight facts about Wall Street, Robinhood etc
Edit: oh I’m watching a rerun, Portnoy just came on -_-
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On January 29 2021 10:46 Slaughter wrote:
AOC is fucking streaming on twitch talking about the whole GME thing.
given that shes on the financial services committee in congress it might be worth listening to
https://www.twitch.tv/videos/892140641
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I wonder where these politicians will be when the short squeeze ends and the majority of the retail investors will be holding the bag. After the short interest ends the stock will drop to it's previous levels. The profits will go to a few lucky lads at WSB, the funds who went long on GME and high frequency traders who will arbitrage the squeeze. The rest of the retail traders will see their paper gains disappear.
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On January 29 2021 15:58 RvB wrote:
I wonder where these politicians will be when the short squeeze ends and the majority of the retail investors will be holding the bag. After the short interest ends the stock will drop to it's previous levels. The profits will go to a few lucky lads at WSB, the funds who went long on GME and high frequency traders who will arbitrage the squeeze. The rest of the retail traders will see their paper gains disappear.
If people invested in this trying to make money, they took the risk and should have known that inevitably they need to be lucky.
Surely?
I don't think there's much a bunch of politicians can do about uninformed people taking stupid risks.
Mind you, that's just a random opinion, I actually know nothing about any of this besides 'explanations' that i've read.
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On January 29 2021 16:02 Jockmcplop wrote:Show nested quote +On January 29 2021 15:58 RvB wrote:
I wonder where these politicians will be when the short squeeze ends and the majority of the retail investors will be holding the bag. After the short interest ends the stock will drop to it's previous levels. The profits will go to a few lucky lads at WSB, the funds who went long on GME and high frequency traders who will arbitrage the squeeze. The rest of the retail traders will see their paper gains disappear. If people invested in this trying to make money, they took the risk and should have known that inevitably they need to be lucky. Surely? I don't think there's much a bunch of politicians can do about uninformed people taking stupid risks. Mind you, that's just a random opinion, I actually know nothing about any of this besides 'explanations' that i've read.
Nothing much you can do about people taking stupid risks no. But they're riding the populist wave and pretending to stand up for the retail investor for extra views. In reality the situation is much more nuanced and the retail investors will be taking the inevitable losses. Better to use your platform to try to inform them of the dangers but that won't give you the clicks I guess.
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I wonder how much of that is due to their own systems not being able to handle the volume efficiently. I don't really understand the technical aspects of brokerage work, but surely handling thousands of trades involving fractions of stocks is quite tough for them in terms of matching them so that RH themselves don't end up sitting on a pile of GME.
With this volatility RH stopping the trading yesterday may genuinely not have been as nefarious as lots of people suggested, but quite a normal protection measure.
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They didn't stop the trading tho. Just the buying by individuals. People could still sell while not being able to buy. So unless i'm spewing garbages, somebody had to be able to buy those shares.
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The hedge funds won't be buying them off of RH I'm fairly sure. Maybe RH had sold more to it's customers than they were actually able to get their hands on, essentially ending up in a short position that they had to cover themselves. Prevent buying of GME so they can make sure they don't end getting fucked by the combination of high bid-ask spread and mad volatility.
That would tie in with the funding round, they need a lot more liquidity to be able to deal with the mad volatility.
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Funny enough, GME is one of those stocks where a lot of people have already accepted the possibility that they’ll lose their investment on it, but they’re going to stick to it anyways. Someone will eventually baghold, of course.
Though I’m too wimpy to actually try to play the GME, I at the very least plan to drop Robinhood as a result of this. It’s the final straw for this terrible platform that has always failed me when it mattered.
EDIT: Question for those who know - what did the brokers other than RH do to restrict GME trading? I know RH did a completely shady "you can't buy, but you can't sell" but apparently others (e.g. TD Ameritrade) did something else:
TD Ameritrade Trading Restrictions on Stocks
Securities with trading restrictions
We have placed some restrictions on the following securities. These restrictions will not prevent clients from making basic buy and sell transactions. This list is as of January 28, 2021, 4:00PM ET.
AMC, CVM, EXPR, FOSL, GME, NOK, BB, BBBY, FIZZ, GSX, IRBT, NCMI, TR, UONE, VIR, NAK, NAKD, DDS, KOSS
The following restrictions are in place:
Stocks - 100% holding requirement (not marginable)
Long calls and puts are allowed
Covered call and short put orders may only be placed with a broker. Please be aware that wait times to speak with a broker may be longer than normal due to current market conditions.
Covered calls only allowed if your account currently has the shares
Short puts only if you have the maintenance/cash to cover the entire exercise amount of the short puts
All other complex options orders will not be accepted
We may also implement additional restrictions on the opening of option trades that expire Friday, January 29th
And honestly the above restrictions seem much less shady than what RH did.
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On January 29 2021 22:42 Oukka wrote:
The hedge funds won't be buying them off of RH I'm fairly sure. Maybe RH had sold more to it's customers than they were actually able to get their hands on, essentially ending up in a short position that they had to cover themselves. Prevent buying of GME so they can make sure they don't end getting fucked by the combination of high bid-ask spread and mad volatility.
That would tie in with the funding round, they need a lot more liquidity to be able to deal with the mad volatility.
Yep, most likely HF caught short here will be selling bluechips over the counter to other big players and buy squeezed shares OTC as well (or maybe borrow to sustain the short). Eventually that stock will be sold at once, this is how crashes are made.
It's the brokerages that can't afford to pay out that much at once would be my guess, so I'd be careful with holding their derivatives (if you hold stock in their accounts it's always yours though).
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I hear fidelity is one of the few that didn't restrict trading. My retirement account is through them so I might switch to them. I've been using etrade for stocks.
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This really is a huge shift in market mentality, and not letting the elite traders bully their way in the market anyway. As they continue to pull out all the stops we will learn how far they will go to protect their money
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On January 30 2021 02:53 art_of_turtle wrote:
This really is a huge shift in market mentality, and not letting the elite traders bully their way in the market anyway. As they continue to pull out all the stops we will learn how far they will go to protect their money
They already know how much they're going to lose. It's just a number game at this point, they'll do anything as long as the final cost is lower than what it shouldve been.
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Does what WSB did constitute market manipulation? I find the definition I found problematic. It says that it's an action that attempt to deviate the market price of a security from the true price. How do you determine what the true price is, though?
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EPT
