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Anyone here participating in the on-going short squeeze involving multiple stocks, most prominently GAMESTOP and AMC? Seems the happy money has been made by those who got in early, and massive losses are being made by the hedge funds that shorted these stocks, in the case of the former to 140% of the available shares! But there will surely also be lots of tears when these stocks crash in the next few days or weeks.

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Actually, one small (3 or 4 branches) bank called Abacus owned by a Chinese/American family got prosecuted. I recently watched a documentary on it - called "Small Enough To Jail". That whole

Your broker can only lend your shares to shorts if you have a margin account. My son is one of the autism spectrum kids playing. Most of them have 30 or fewer shares. This represents essentially

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Yes.  I am on the WallStreetBets subredit and bought a bunch of shares of GME last week.  I bought AMC yesterday.  I've sold some of my GME stock to cover my initial purchase and are just freerolling now.

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TD Ameritrade just put "limitations on certain transactions" on GME and AMC. What are they doing? If you've got a margin agreement (in order to short), and you open a short, you'd better understand what that means. Unlimited potential for loss. No way would I support a hedge fund being blocked from a short. Those are the boys that either make it huge or crater.

Part of the game.

EDIT: kind of reminds me of the days of JP Morgan and Co.. Corner the market and realize that there isn't enough stock available to cover the short.

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17 minutes ago, Borax Johnson said:

TD Ameritrade just put "limitations on certain transactions" on GME and AMC. What are they doing? If you've got a margin agreement (in order to short), and you open a short, you'd better understand what that means. Unlimited potential for loss. No way would I support a hedge fund being blocked from a short. Those are the boys that either make it huge or crater.

Part of the game.

EDIT: kind of reminds me of the days of JP Morgan and Co.. Corner the market and realize that there isn't enough stock available to cover the short.

.... and when they crater, they get a bailout.   When retail investors creator, they lose it all.   Seems fair.  :D

https://www.forexlive.com/news/!/did-melvin-capital-just-get-a-bailout-20210125

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So, help me understand this. A gang of investors organized on REDDIT decide to bid up a set of otherwise relatively obscure stocks with relatively small numbers of shares issued, focussing on those that are most heavily shorted by big hedge funds (GameStop was 130% short sold!). So that hurts the short sellers really badly because they must buy shares to cover their shorts, which helps sustain the ridiculously high valuations, but how do you know when the short sellers are all wiped out and it is time to get out yourself? These are clearly massive bubbles that are unsustainable.

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Does the timing of all of this have anything to do with the presidential transition, because the SEC is disorganized and not paying attention?

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SEC probably is paying attention but there is nothing illegal about taking a bullish position on a stock, so not sure what they would want to do.  Institutional and Hedge Fund investors play all kinds of shenanigans pushing stocks up and down through  PR announcements and showing up as a talking head on a financial network.  Everyone now and again the retail market takes over and there isn't anything the insiders can do about it except wait it out.  The investors in GME are riding the wave.  Some will make money, and some will get burned.  That's just the every-day life of day traders.   As they say, bulls and bears make money, and pigs get slaughtered.  

The "gang" of investors organized on REDDIT much like a "gang" of investors in a Market Makers office and decide what the play of the day or week or month or quarter is.  The "gang" on REDDIT are less well funded individually but outnumber the insider "gang".  But, the insider "gang" makes it up in how much they are funded.   The insider "gang" usually controls the "game", but in this instance, the REDDIT "gang" got to control the "game" and are doing a classic financial move called "The Big Squeeze". Usually, insiders pull that kind of maneuver when a stock is over leveraged.  This time the REDDIT "gang" saw it first and took advantage.  It will be short-lived, and life will go back to insiders making all the moves, making all the money, and with plenty of parachutes and bailouts to pad their bad decisions.  Life goes on.

Ironically, Michael Burry, of Scion Asset Management, of "The Big Short" fame, is going long on GME and has 2.75M shares.  So, he is seeing something that the people at Melvin Capital didn't see. He is not the only "insider" who is also following form.

https://www.businessinsider.com/gamestop-michael-burry-big-short-stock-next-gen-discs-2019-8

What the SEC should be focusing on is how a Private Equity firm was above short GameStock to 140% of the available shares.  How is that even legal?  But, the insiders make the rules, and this time one of their tricks was played against them.

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I was 100% sure this thread was about the giant shit you took this morning.  Good thing, as I was running low on eye bleach.

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wall street is not happy having those darn kids give them a good ass kicking at their own game

Looks like they called up Sleep Joe...

https://www.zerohedge.com/markets/sec-joins-biden-admin-actively-monitoring-option-volatility

 

 

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1 hour ago, MauiPunter said:

SEC probably is paying attention but there is nothing illegal about taking a bullish position on a stock, so not sure what they would want to do.  Institutional and Hedge Fund investors play all kinds of shenanigans pushing stocks up and down through  PR announcements and showing up as a talking head on a financial network.  Everyone now and again the retail market takes over and there isn't anything the insiders can do about it except wait it out.  The investors in GME are riding the wave.  Some will make money, and some will get burned.  That's just the every-day life of day traders.   As they say, bulls and bears make money, and pigs get slaughtered.  

The "gang" of investors organized on REDDIT much like a "gang" of investors in a Market Makers office and decide what the play of the day or week or month or quarter is.  The "gang" on REDDIT are less well funded individually but outnumber the insider "gang".  But, the insider "gang" makes it up in how much they are funded.   The insider "gang" usually controls the "game", but in this instance, the REDDIT "gang" got to control the "game" and are doing a classic financial move called "The Big Squeeze". Usually, insiders pull that kind of maneuver when a stock is over leveraged.  This time the REDDIT "gang" saw it first and took advantage.  It will be short-lived, and life will go back to insiders making all the moves, making all the money, and with plenty of parachutes and bailouts to pad their bad decisions.  Life goes on.

Ironically, Michael Burry, of Scion Asset Management, of "The Big Short" fame, is going long on GME and has 2.75M shares.  So, he is seeing something that the people at Melvin Capital didn't see. He is not the only "insider" who is also following form.

https://www.businessinsider.com/gamestop-michael-burry-big-short-stock-next-gen-discs-2019-8

What the SEC should be focusing on is how a Private Equity firm was above short GameStock to 140% of the available shares.  How is that even legal?  But, the insiders make the rules, and this time one of their tricks was played against them.

I understand all of that, and what the "retail" investors are doing here, but the crash is going to be spectacular and those left holding the bag will get seriously burned. What I don't understand is how you judge when to get out. Is there public information as to who holds what shorts and what dates they are for? Otherwise you have to wait to hear a rumour on CNBC!

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2 hours ago, TheDragon said:

So, help me understand this. A gang of investors organized on REDDIT decide to bid up a set of otherwise relatively obscure stocks with relatively small numbers of shares issued, focussing on those that are most heavily shorted by big hedge funds (GameStop was 130% short sold!). So that hurts the short sellers really badly because they must buy shares to cover their shorts, which helps sustain the ridiculously high valuations, but how do you know when the short sellers are all wiped out and it is time to get out yourself? These are clearly massive bubbles that are unsustainable.

It's a variation on the old "Pump & Dump" scam.

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But wouldn't now be the best time to short all of these 10 stocks? They have to come down, they cannot stay up in the stratosphere.

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Just now, TheDragon said:

But wouldn't now be the best time to short all of these 10 stocks? They have to come down, they cannot stay up in the stratosphere.

exactly

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24 minutes ago, Foreverslow said:

wall street is not happy having those darn kids give them a good ass kicking at their own game

Looks like they called up Sleep Joe...

https://www.zerohedge.com/markets/sec-joins-biden-admin-actively-monitoring-option-volatility

 

 

If Anyone is going to make money or Lose It ALL - Jo & da Hoe gutta get in on it

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2 hours ago, TheDragon said:

WallStreetBet forum now private!

It's back.  It got hacked by bots.   Someone must be nervous.

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3 hours ago, TheDragon said:

I understand all of that, and what the "retail" investors are doing here, but the crash is going to be spectacular and those left holding the bag will get seriously burned. What I don't understand is how you judge when to get out. Is there public information as to who holds what shorts and what dates they are for? Otherwise you have to wait to hear a rumour on CNBC!

The whole investment strategy focused on the percentage of outstanding short positions exceeding the amount of float available.   (ie, they shorted 150 shares when only 100 was available on the free market).   This caused an imbalance which was around 150% or so.  These hedge funds were OVERLY leveraged for this particular stock. For me, when the short positions start to cover and that percentage starts to go down, that is my signal.  Also, the put options expire on Friday.  If the stock stays at its current price level, some more hedge funds are going to implode and need to be bailed out.  Right now there are around 200,000 put option contracts that are about to expire in two days and all these contracts will have to be filled at the market, which is going to be in billions of losses, and the stock may shot for the moon like VW did last year.   Or it may implode when everyone panics tomorrow morning and starts dumping the stock.   It's a risk.  But, the upside is huge if everyone just holds on and weathers the chaos that's coming.

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3 hours ago, SloopJonB said:

It's a variation on the old "Pump & Dump" scam.

It's actually not quite the same.  The strategy is as I described above, and we are executing a squeeze play.  Hedge Funds do this all the time.  It's a legal strategy based on the fundamentals of a firm being seriously over-leveraged on the short side.  But instead of a couple people with big bucks, its a bunch of people with small bucks to do the same thing.

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1 minute ago, MauiPunter said:
3 hours ago, SloopJonB said:

It's a variation on the old "Pump & Dump" scam.

It's actually not quite the same. 

Hence the word "variation"

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4 hours ago, TheDragon said:

But wouldn't now be the best time to short all of these 10 stocks? They have to come down, they cannot stay up in the stratosphere.

 

That is what a bunch of people thought last year when Tesla was way below the price that would soon trigger covenants that would destroy Elon Musk.

they are still patting out hot spots in their smoldering pajamas.

 

The best part will be the hedge fund letter to investors explaining how they lost all their money on 1 play to a bunch of kids on the internet who were 1 step ahead of them.  These letters usually contain statement of the obvious at the level of an explanation by NASA of why a rocket exploded.

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9 hours ago, MauiPunter said:

The whole investment strategy focused on the percentage of outstanding short positions exceeding the amount of float available.   (ie, they shorted 150 shares when only 100 was available on the free market).   This caused an imbalance which was around 150% or so.  These hedge funds were OVERLY leveraged for this particular stock. For me, when the short positions start to cover and that percentage starts to go down, that is my signal.  Also, the put options expire on Friday.  If the stock stays at its current price level, some more hedge funds are going to implode and need to be bailed out.  Right now there are around 200,000 put option contracts that are about to expire in two days and all these contracts will have to be filled at the market, which is going to be in billions of losses, and the stock may shot for the moon like VW did last year.   Or it may implode when everyone panics tomorrow morning and starts dumping the stock.   It's a risk.  But, the upside is huge if everyone just holds on and weathers the chaos that's coming.

Thanks, so Friday will be very interesting. GameStop now around 500, so folks are clearly anticipating that hedge funds will have to buy even more stock, at least through Friday. The weekend might be a bloodbath.

I wonder if GameStop had any shares in their pocket they could sell and maybe sustain their company for a while, as AMC appears to have done.

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7 hours ago, Foreverslow said:

 

That is what a bunch of people thought last year when Tesla was way below the price that would soon trigger covenants that would destroy Elon Musk.

they are still patting out hot spots in their smoldering pajamas.

 

The best part will be the hedge fund letter to investors explaining how they lost all their money on 1 play to a bunch of kids on the internet who were 1 step ahead of them.  These letters usually contain statement of the obvious at the level of an explanation by NASA of why a rocket exploded.

I can't believe GameStop will be the next Tesla. Tesla is a real business with real abilities and leading technologies. Can't same the same for GameStop. AMC can't really do anything much more than they do now in terms of running theaters, indeed they are a dying business. So shorting these companies now makes a ton of sense if I had the nerve and knowledge.

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Should make Gabe Plotkin cover the losses of his hedge fund, let him pay back all the pension funds that invested in it using his gains from his previous shorting exploits.

https://therealdeal.com/miami/2020/12/07/melvin-capital-founder-revealed-as-buyer-of-44m-miami-beach-property-sources/

But, as usual, he will walk away with his massive salary and keep his outrageous new homes. The really bizarre part is these other two hedge funds upping 3b to support him. WTF!

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2 hours ago, TheDragon said:

I can't believe GameStop will be the next Tesla. Tesla is a real business with real abilities and leading technologies. Can't same the same for GameStop. AMC can't really do anything much more than they do now in terms of running theaters, indeed they are a dying business. So shorting these companies now makes a ton of sense if I had the nerve and knowledge.

IMHO Tesla is a ponzi scheme that does not even pay off the original suckers.

They have a capitalization bigger than most the world's auto makers combined, and only make a limited volume of cars.

As the big boys enter the mix (Porsche at the high end, VW and Ford at the low end) they are going to be squeezed.

And when Americans wake up to the deal Elon cut with the Chinese which basically says if there are any slowdowns, Tesla has to first sell chinese made autos before any manufactured in US or Europe, they may blow tesla off for good.

They have burned through their set of auto tax credits so their actual prices in the US are about to go up.

The carbon credits keeping them in the black are running out of.

The heavy truck division has gone dark for past 2 years.

the flamethrower product was a stunt.

The tunnel company is going nowhere.

 

Only reason they are not toast is the US Government wants them around to supply rockets so they do not have to buy them from the Russians.

But that does not justify the current capitalization, and with no dividends, it is all a greater fool theory at this point.

When the tide goes out the bag holders are going to be burned.

 

Gamestop is a real company with a shaking future, but they have a chance .  Tesla is a hyped ponzi scheme.  That is where the SEC should be looking instead of some millennials buying stock to burn some hedgies.

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Hilarious. So you think GameStop is a $24 billion cap company? It's share price overnight hit $500! This is a good old-fashioned short squeeze, just played out by retailers rather than hedge funds. Yes, some will get burned, but try checking out some of these twitter feeds, these folks don't care, they just want to stick it to the big hedge funds, and they are doing it amazingly well. 

Tesla is here to stay and has shaken the big autos to their core, all struggling to catch up while Tesla races ever further ahead. Is $880 warranted for their stock, I don't know, but it is nowhere as crazy as $500 for GameStop.

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Dragon

You are missing my point.

gamestop was at 5-6 bucks until June.

it went to 11 during the fall.

Beginning of month it took off as the millennials punished the hedgies.  

Now at 300-500 depending on the time of day.

If each millennial  buys 1 share and holds until Monday, there are going to be big repercussions on wall street, and the game of hedge funds ganging up to destroy a company will slow down.  This is rubbing salt into the wounds as last year the millennials using Robinhood to cause crazy valuations had a better return than all the hedge funds.  That was a tough discussions with their investors to explain how kids did better than their high load technobabble strategies.  Now this...

Small price to pay to start to bring some sanity to this market.  The SEC sure wasn't going to stop this.  Most those pricks ignore everything while collecting a pay check and once they qualify for retirement walk into a high paying job as a risk mitigation expert at the firms they used to regulate.    Flaming scum bags.

 

When GME get back to $6-11 bucks, yes they have a chance.  The kids take a small bath now, but change the rules for the long term as the SEC was not going to a thing.  Now the market is cleansing itself due to those kids.

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19 hours ago, MauiPunter said:

.... and when they crater, they get a bailout.   When retail investors creator, they lose it all.   Seems fair.  :D

https://www.forexlive.com/news/!/did-melvin-capital-just-get-a-bailout-20210125

 

Privatize the profits and socialize the losses.  Same as it ever was, and ever shall be!!!

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going through the threads over there, lots of people that are pissed off and looking for revenge due do to them watching their parents go down hard from the recession in 2008 caused by Wall Street.

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10 minutes ago, hobot said:

going through the threads over there, lots of people that are pissed off and looking for revenge due do to them watching their parents go down hard from the recession in 2008 caused by Wall Street.

 

Both of our formerly good incomes flatlined for 5 years, and we ultimately got new jobs in different fields, and lost our waterfront family home of 30 years to a short sale.   

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26 minutes ago, billy backstay said:

 

Privatize the profits and socialize the losses.  Same as it ever was, and ever shall be!!!

There was no public money that went into Melvin to shore it up, but don't let the facts get in the way of a good story.

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looks like some hedgies saw this backlash coming and got out in time:

https://www.zerohedge.com/markets/carson-block-massively-reduced-his-firms-short-exposure-amidst-retails-recent-buying-frenzy

 

A sea change is going on.  As Hobot says,  there are a lot of pissed off people who love sticking it to the man and his scams.

 

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Might want to pay attention to who is behind Robinhood, some of them might have skin in the game.

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5 hours ago, Foreverslow said:

IMHO Tesla is a ponzi scheme that does not even pay off the original suckers.

They have a capitalization bigger than most the world's auto makers combined, and only make a limited volume of cars.

As the big boys enter the mix (Porsche at the high end, VW and Ford at the low end) they are going to be squeezed.

And when Americans wake up to the deal Elon cut with the Chinese which basically says if there are any slowdowns, Tesla has to first sell chinese made autos before any manufactured in US or Europe, they may blow tesla off for good.

They have burned through their set of auto tax credits so their actual prices in the US are about to go up.

The carbon credits keeping them in the black are running out of.

The heavy truck division has gone dark for past 2 years.

the flamethrower product was a stunt.

The tunnel company   is going nowhere   Augured In.

 

Only reason they are not toast is the US Government wants them around to supply rockets so they do not have to buy them from the Russians.

But that does not justify the current capitalization, and with no dividends, it is all a greater fool theory at this point.

When the tide goes out the bag holders are going to be burned.

 

Gamestop is a real company with a shaking future, but they have a chance .  Tesla is a hyped ponzi scheme.  That is where the SEC should be looking instead of some millennials buying stock to burn some hedgies.

fify

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I love to see people who use the market as a casino get fucked hard.

It was created and intended for investing in businesses, not as another form of gambling.

How many times do those scum have to fuck up the economy before people wake up?

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7 minutes ago, SloopJonB said:

I love to see people who use the market as a casino get fucked hard.

It was created and intended for investing in businesses, not as another form of gambling.

How many times do those scum have to fuck up the economy before people wake up?

I think HWSNBN has proven that there is no limit. To infinity and beyond, indeed.

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2 hours ago, TheDragon said:

Might want to pay attention to who is behind Robinhood, some of them might have skin in the game.

Hello Mr. Robinhood. This is Mr. Hedgefund calling. I'd like to propose a business venture. If you wouldn't mind suspending orders on certain listed equities, I'd like to start clearing trades through your firm....

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1 hour ago, Borax Johnson said:

Hello Mr. Robinhood. This is Mr. Hedgefund calling. I'd like to propose a business venture. If you wouldn't mind suspending orders on certain listed equities, I'd like to start clearing trades through your firm....

This is not far off.  The market maker for Robinhood is , Citadel, the same company that bailed out Melvin Capital and took over its short positions.   They stopped Robinhood investors from buying, and only letting them sell.   Once the stock dropped 150pts, they turn on the spigot again.  Sounds fair.  :D  Oh, and they also have a stake in TD Ameritrade, who also haulted trading.  Nothing to see here.  :ph34r:

I'm still in the black, so, am going to ride this out.  Stock is back up in after-hours trading almost to $300/sh.  

LETS GO!!  :D  Friday is the day of penance.  

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steve crest at seeking alpha (investment web site) has a list of companies and the percentage of their total stock that is currently being shorted.

He cut it off at companies with 25% of their stock or higher being shorted.
Companies that if you own may be at more risk than you thought by the hedgies.

 

Some big names there.  Some you expect (AMCX), some that are surprising (SKT or Tangiers Outlets which is considered one of the best mall REITs and looking to capitalize when the other malls start to fail).

Subscription is for free.

Great way to get educated on investing.

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4 hours ago, SloopJonB said:

I love to see people who use the market as a casino get fucked hard.

It was created and intended for investing in businesses, not as another form of gambling.

How many times do those scum have to fuck up the economy before people wake up?

not one person on wallstreet got prosecuted for what they did in 2008

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On 1/27/2021 at 2:38 PM, TheDragon said:

So, help me understand this. A gang of investors organized on REDDIT decide to bid up a set of otherwise relatively obscure stocks with relatively small numbers of shares issued, focussing on those that are most heavily shorted by big hedge funds (GameStop was 130% short sold!). So that hurts the short sellers really badly because they must buy shares to cover their shorts, which helps sustain the ridiculously high valuations, but how do you know when the short sellers are all wiped out and it is time to get out yourself? These are clearly massive bubbles that are unsustainable.

It might make sense to short them at some point. But the story behind this is that that a bunch of short sellers (some naked shorts, which are illegal) decided to fuck with the wrong crowd and they lost.

They're going to naked short some industrial, or some aggregate company in Saskatoon? Yeah, they'll probably get away with it.

But they took on Game Stop, which was fucking stupid, because they essentially bet money on the company to fail, and employed by Game Stop are thousands of computer nerds, who know how to spread the word on Reddit and Hive, etc., and a lot of these Game Stop folks are nothing short of rock stars with the gamer folks. So they spread the word, the stock gets dumped (in some cases illegally) and the buyers ride in and buy it up cheap, which then forces some of these shorts to lose their shirts.

The shorts played the game like they were above the rules, and they got beat, fair and square by people who are at least as intelligent as they are, and far better organized. So then they cry to the regulatories, who wipe their eyes and then try to restrict trading.

 

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37 minutes ago, floating dutchman said:

Why is short selling even legal?

Just seems like a tool to fuck over real investors to me.  What do I not understand about all this?

Short selling is legal, unless they try to short stocks that haven't actually been valued and quantified. That apparently happened with Game Stop and AMC, some of the shorts got greedy and figured that the SEC wouldn't bother with them because they would cover quickly. Now they're fucked ... maybe they can get a job working at Dunkin Donuts, cleaning out the lard trays.

 

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5 hours ago, frenchie said:

What's a "synthetic long"? 

Read a comment that the gamestop short wasn't actually 139%, justs synthetic longs made it look that way. 

Is synthetic long just a way of saying "someone is naked shorting, but maybe we can blame it on actual investors"?

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On 1/27/2021 at 2:58 PM, MauiPunter said:

What the SEC should be focusing on is how a Private Equity firm was above short GameStock to 140% of the available shares.  How is that even legal?  But, the insiders make the rules, and this time one of their tricks was played against them.

Who said it was legal? But the SEC has apparently looked at naked shorting the way NBA refs look at traveling ... they ignore it early and often.

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This guy Vlad is literally doing a word salad routine and making shit up.  It's kinda hilarious.  If a stock is ever haulted on the exchanges, its completely haulted.  There would be no buying, no selling, nothing.  The fact they allowed their hedge fund owners cover their shorts while shutting down the retail investors from buying, and only allowing them to sell, reaks of a crime.

There is already a class action lawsuit afoot against Robinhood for their behavior today.

Image

https://www.ign.com/articles/robinhood-hit-with-class-action-lawsuit-after-halting-gamestop-stock?sf137084202=1

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27 minutes ago, MauiPunter said:

This guy Vlad is literally doing a word salad routine and making shit up.  It's kinda hilarious.  If a stock is ever haulted on the exchanges, its completely haulted.  There would be no buying, no selling, nothing.  The fact they allowed their hedge fund owners cover their shorts while shutting down the retail investors from buying, and only allowing them to sell, reaks of a crime.

There is already a class action lawsuit afoot against Robinhood for their behavior today.

Image

https://www.ign.com/articles/robinhood-hit-with-class-action-lawsuit-after-halting-gamestop-stock?sf137084202=1

Millennials should read up on how the market locked up in October of 2008 when stockholders could not execute sell orders and lost their shirts.  Big boys had no issues.

Robinhood has already stiffed it's clients 3 times in past couple years shutting down under load showing they will be one of the first to have "system issues" which will block the the exits when next crash happens.   Have already told my daughter to stay away from them.  When the great reset happens, those thinking they can wait until the last minute and just key in a sell order are going to get slaughtered because they will not be able to exercise their shares.

Hope that lawsuit wakes them up, but it is more likely they will bend to the wishes of their true masters.

 

 

As George Carlin used to quip: Yes there is a club and you ain't in it..

You have been warned.

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11 minutes ago, Foreverslow said:

Millennials should read up on how the market locked up in October of 2008 when stockholders could not execute sell orders and lost their shirts.  Big boys had no issues.

Robinhood has already stiffed it's clients 3 times in past couple years shutting down under load showing they will be one of the first to have "system issues" which will block the the exits when next crash happens.   Have already told my daughter to stay away from them.  When the great reset happens, those thinking they can wait until the last minute and just key in a sell order are going to get slaughtered because they will not be able to exercise their shares.

Hope that lawsuit wakes them up, but it is more likely they will bend to the wishes of their true masters.

 

 

As George Carlin used to quip: Yes there is a club and you ain't in it..

You have been warned.

So true.   I use Vanguard and I had no trouble executing trades today.  I picked up more shares when the price cratered around 9:45 am.   I also heard that Fidelity had no service issues servicing their clients in making transactions on GME.   It seems the smaller, cheaper (free), brokerage apps are all beholden to some larger entity that you will probably find yourself on the other side of on a trade and they will always front-run you, or lock you out in the most critical time.

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the stock market is one big Ponzi scheme , ask Madoff or Miklen go back 2000yrs, Christ knew it then'; 

Jesus entered the temple courts and drove out all who were buying and selling there. He overturned the tables of the money changers and the benches of those ...
 
Jesus kicks out the bankers – Washington Liberals
 
The old saying:image.jpeg.d13cec13623dd6f112e30904e0cd23c5.jpeg
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6 hours ago, Foreverslow said:

Millennials should read up on how the market locked up in October of 2008 when stockholders could not execute sell orders and lost their shirts.  Big boys had no issues.

Robinhood has already stiffed it's clients 3 times in past couple years shutting down under load showing they will be one of the first to have "system issues" which will block the the exits when next crash happens.   Have already told my daughter to stay away from them.  When the great reset happens, those thinking they can wait until the last minute and just key in a sell order are going to get slaughtered because they will not be able to exercise their shares.

 

While I agree with the majority of what you are saying, the market rewards more of those that buy quality shit, and not the trumped up shit.  I rode out the 2008 bubble pop and did not sell anything off, I am well ahead because of this.  This GME stuff is basically trying to time the market/day trading.  Very few people make money using that method.  Slow and steady usually wins the race (not in sailing, of course).  If a reset comes, waiting it out will win over trying to unload everything hoping to get some value back.

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7 hours ago, Raz'r said:

Don’t take investing advice from Woofers.  

Don't take investing advice from anyone. But especially not duh-Raz'r, lest the hapless investor back up the truck and load up a portfolio of cellophane, buggy whip and dildo stocks.

Anyway, I've not actually given any investment advice in this thread, just comments on a bunch of naked shorts losing their shirts. But you're too much of a simpleton to even understand what you read.

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Robinhood relents and allows GME to trade.

funny how it was right after Citadel said it had no involvement.

https://www.zerohedge.com/markets/you-can-not-purchase-additional-shares-robinhood-reportedly-removed-shuts-down-buying

 

but Citadel looks to be cutting off its trades from Robinhood which could cause Robinhood to fail itself for lack of revenue.

They are hitting their lines of credit and trying to raise a billion bucks.

https://www.zerohedge.com/markets/cash-strapped-robinhood-scrambles-raise-1-billion-rich

the term rock and a hard place comes to mind.

 

 

There is no such thing as a free app, be it a trading tool or a web search or mapping .  Someone is paying for the cpu cycles and power.

Follow the money and know who is really running things.

Do not be like turkeys in early November wondering why the farmer is feeding them extra food....

 

should be some good articles starting tomorrow on how this all played out and who got gored..

 

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16 hours ago, MauiPunter said:

This is not far off.  The market maker for Robinhood is , Citadel, the same company that bailed out Melvin Capital and took over its short positions.   They stopped Robinhood investors from buying, and only letting them sell.   Once the stock dropped 150pts, they turn on the spigot again.  Sounds fair.  :D  Oh, and they also have a stake in TD Ameritrade, who also haulted trading.  Nothing to see here.  :ph34r:

I'm still in the black, so, am going to ride this out.  Stock is back up in after-hours trading almost to $300/sh.  

LETS GO!!  :D  Friday is the day of penance.  

Jail for the fuckers is too good.

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14 hours ago, Grande Mastere Dreade said:

not one person on wallstreet got prosecuted for what they did in 2008

Actually, one small (3 or 4 branches) bank called Abacus owned by a Chinese/American family got prosecuted.

I recently watched a documentary on it - called "Small Enough To Jail".

That whole situation was the one thing Obama should never be forgiven for. Letting all those cocksuckers get away with it, even paying themselves enormous bonuses out of TARP money, was inexcusable.

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10 hours ago, Not for nothing said:

the stock market is one big Ponzi scheme

Way overstated.

There is far too much gambling bullshit in the market but to write off the whole thing as a Ponzi is just bullshit.

Do you think Buffet is equivalent to Ponzi?

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1 hour ago, SloopJonB said:

Way overstated.

There is far too much gambling bullshit in the market but to write off the whole thing as a Ponzi is just bullshit.

Do you think Buffet is equivalent to Ponzi?

Over my years in and out of the market, I've seen somethings, Work for a company and "rumors from the boss" floating around the company being brought out , stock goes up 5X in a week ,  Insider trading?

CNBC " Cramer" constantly manipulates the market, on a daily  basis. So about Buffet uses all the tools /info available to him , things the average investor doesn't have, He  probably talks to CEO regularly. Insider trading? Is he a Madoff or Milken , I hope not.

If the Banks/hedge funds lose big there bailed out or rules put in place by the SEC to protect them , but if SloopJonB loses money, oh well.

I do think this Gamestop and others is funny to watch the big guys sweating 

watch Greg M on youtube and his take on the this Brokerages/Markets A CRIME IN PROGRESS FOR RETAIL INVESTORS. Mannarino - YouTube

Going back the last 2 decades and the TOO BIG TOO FAIL, is not capitalism 

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This picture is the first thing you see as the elevator door opens on the first floor of a building I frequent. The floor and building are owned and occupied by a hedge fund. I believe it is there to deliver a deliberate message.

 

lobby.jpg

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I'm impressed that the REDDITEERS are holding the line today, trying to burn out all the shorts. I just hope MauiPunter gets out in time. And I just wish I had the chops to short GameStop now.

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1 hour ago, Borax Johnson said:

There is a pretty good and technical explanation of why Robinhood had to limit trading here. Robinhood basically had to borrow from the rich.

yep, read that they basically ran out of ready cash to support the trades. Plain ol' liquidity crunch.

That's the thing about Black Swan events. You can make "better than market" returns for awhile, Robinhood's idea, but something will eventually come along to force you to pay.

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In the not too distant past most of the Robinhood account holders would not have been able to open a brokerage account much less an account that would let them trade on margin. It seems that the old requirements of income and net worth no longer apply.

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5 minutes ago, Zonker said:

You can always open a brokerage account - send them money and have it. 

Was not always the case.  Different rules for cash accounts, margin accounts and option accounts. The brokerage firm can always set restrictions as well. Current rules require risk controls to be in place by the last Broker Dealer that handles an order prior to execution.

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2 hours ago, Raz'r said:

That's pretty rich given you got the description wrong. haha.

 

Do you mean the description of that time you lost a third of your retirement value with your ill-timed investments in Chesapeake Energy?

I'm glad I ignored your advice on that one especially, but damned if you weren't pimping that stock.

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9 minutes ago, mikewof said:

 

Resorting to lying? I suppose that's the only thing to fall back on now that all your PhD classmates(math whizzes, all) are billionaires on the Street and you're filtering water with rolls of TP.

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3 hours ago, TheDragon said:

I'm impressed that the REDDITEERS are holding the line today, trying to burn out all the shorts. I just hope MauiPunter gets out in time. And I just wish I had the chops to short GameStop now.

I'm in the black cause I sold shares on the pop Monday morning.  So, I got the amount out that I invested to start off.  Now I am purely free rolling.   I managed to pick up more shares in the dip when it bounced at $150.   Today we just closed at $325 (67% return today) which was the goal to keep it over $320 for the day.  The call options are all in the money.  The squeeze didn't happen today as planned.   The hedgies are playing chicken and are willing to lose $20B expecting the WSB crew to blink, but they don't understand the degenerates on the subreddit.

I have stepped sell limit orders already set for passing through some thresholds on the way up.  Either way, I am happy to take the ride, and feels good to not think about politics for a change.

https://www.cnbc.com/2021/01/29/gamestop-short-sellers-are-still-not-surrendering-despite-nearly-20-billion-in-losses-this-year.html

If you are going to short it, better put a limit SHORT (or PUT contract) order in at $500+/share with about a 2-week expiration when this will mostly be all over.  That way you will execute when the squeeze happens and it spikes.   If you miss it, then your order wouldn't have gotten processed because of your limit order.  But, it could be a very good return.   I have been trying to figure out that side of the equation.  I am not a financial advisor so take my options with a grain of salt.

It would be nice if I can ride this up and down, but that may be greedy and I will get burned.

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5 hours ago, SloopJonB said:

   Do you think Buffet is equivalent to Ponzi?

never been to a Ponzi concert ?

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One of the interesting quotes from the article:

 

Quote

The borrow fee on GameStop’s stock — or the cost-to-borrow shares for the purpose of selling them short — jumped to 29.32% on existing shorts and 50% on new short positions, S3 said.

“If most of the shorts had covered, we would not be seeing stock borrow rates at these high levels — by now you would be able to borrow GME stock at single digit levels due to an increase in the lendable stock loan supply due to borrowed shares being returned after all the ‘supposed’ buy-to-covers,” Dusaniwsky said.

GameStop remained the most-shorted name in the market as short interest as a percentage of shares available for trading stands at 113.31%, S3 said.

So we wait......

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Sadly I'm not clued in enough to execute a short strategy on GameStop or any of these other companies now, and clearly these brokers and houses are making it very hard to short them now, but presumably the sustained high shorting of these stocks is mostly now not the original shorts who have gotten burned, but rather people like me who see these sky high prices and think, yikes, why not short them now because they must come down eventually. And some of those, unlike the original shorts from the hedge companies, will actually make a lot of dough. Making it on the way up and on the way down is pretty damn amazing if you can pull it off.

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8 hours ago, SloopJonB said:

Way overstated.

There is far too much gambling bullshit in the market but to write off the whole thing as a Ponzi is just bullshit.

Do you think Buffet is equivalent to Ponzi?

just ran across this video that says it all billionaires don't want to pay their "fair share"

Sad Billionaire Whines Over Paying 'Fair Share' - YouTube

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3 hours ago, Raz'r said:

Resorting to lying? I suppose that's the only thing to fall back on now that all your PhD classmates(math whizzes, all) are billionaires on the Street and you're filtering water with rolls of TP.

What are you writing about? You keep deleting the words in my posts because you're afraid that some Australians may not look upon you with favor. You didn't used to write for the Wall Street Journal like I did, so my investment advice automatically beats your investment advice. But your expertise does beat mine in the subject of shooting squirrels from that back porch, so you win there.

As for desalination, you can't filter salt out of water, and I do with with rolls of plastic, not toilet point, that wouldn't work, the TP would dissolve, dummkopf.

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15 hours ago, mikewof said:

What are you writing about? You keep deleting the words in my posts because you're afraid that some Australians may not look upon you with favor. You didn't used to write for the Wall Street Journal like I did, so my investment advice automatically beats your investment advice. But your expertise does beat mine in the subject of shooting squirrels from that back porch, so you win there.

As for desalination, you can't filter salt out of water, and I do with with rolls of plastic, not toilet point, that wouldn't work, the TP would dissolve, dummkopf.

and you still wonder why your advisor didn’t approve that PhD thesis?

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1 hour ago, Raz'r said:

and you still wonder why your advisor didn’t approve that PhD thesis?

Actually I never wondered about that. As brilliant as my thesis was, they just weren't ready for "A physicist's study on the measurable impacts of a fifth of tequila with a brunette cocktail waitress who just got fired from the seafood place next door for putting Visine in some asshole's drink, while September by Earth, Wind and Fire was put on repeat on the jukebox by said cocktail waitress and physicist for thirty consecutive plays."

Remember duh-Raz'r, you don't have to be a dumbkopf forever. Are you enough of a cattleman to cowboy up?

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17 hours ago, TheDragon said:

Sadly I'm not clued in enough to execute a short strategy on GameStop or any of these other companies now, and clearly these brokers and houses are making it very hard to short them now, but presumably the sustained high shorting of these stocks is mostly now not the original shorts who have gotten burned, but rather people like me who see these sky high prices and think, yikes, why not short them now because they must come down eventually. And some of those, unlike the original shorts from the hedge companies, will actually make a lot of dough. Making it on the way up and on the way down is pretty damn amazing if you can pull it off.

There isn't necessarily anything wrong a short that rides the stock back down to the original level.

The naked shorting was something else, they found an innocuous stock that represented a company that served a tight-knit community, and then they tried to kill the stock and the company because they're a bunch of soul-less assholes who predate on good people.

To their surprise, a million angry gamers poured through the doors into the street and beat them to within an inch of their lives. They simply fucked with people who are smarter and more ruthless than they are. And on Monday they'll join Raz'r behind the counter and they'll add a few new words to their sales pitch ... "would you like fries with that, maam?"

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3 hours ago, mikewof said:

There isn't necessarily anything wrong a short that rides the stock back down to the original level. 

Please explain why you think that flooding the market with stocks that you don't even own with the intention of driving the price down to what you think is "the original level" just to make a quick buck is O.K?

These slime contribute nothing to society, they drive stock prices down to leach of the hard working folk that are actually working in the company.

How is this not wrong?  I am genuinely interested, please explain.

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1 hour ago, floating dutchman said:

Please explain why you think that flooding the market with stocks that you don't even own with the intention of driving the price down to what you think is "the original level" just to make a quick buck is O.K?

These slime contribute nothing to society, they drive stock prices down to leach of the hard working folk that are actually working in the company.

How is this not wrong?  I am genuinely interested, please explain.

Two things ...

First off, the SEC says that shorting a stock is allowed. But they also say that naked shorting a stock isn't allowed. Unfortunately, they often didn't enforce that regulation, and naked shorting has continued since the housing bubble. In this case, the naked shorting was going on openly and notoriously and the SEC only jumped in when the the hedge funds and naked shorters started screaming that it wasn't fair that a bunch of gamers took all their money. So the SEC jumps in and starts trying to control th