bikeman242
Active Member
"With oil soon becoming obsolete"
I am the guy trading against that thought. Good luck.
See you on the other side.
Wall Street Bets: The EBR Edition
- Thread starter bikeman242
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"With oil soon becoming obsolete"
I am the guy trading against that thought. Good luck.
See you on the other side.
harryS
Well-Known Member
After QS fell from over 100 bucks in December to 48 bucks on the first trading day of 2021, it climbed back to $76 on Wednesday, but fell again to $57. That's what they call in the market a dead cat bounce, but you never know. that cat could find a 9th life next week. Those picky lawyers always looking toi do class actions, I'm looking forward to an easy 300 bucks from facebook here in Illinois because you can't use tracking technology in my state w/o permission,
I try not to buy individual stocks these days. If they soar, I don't know when to sell them, If they dip, I don't have stops in place and I ride too low. Been slowly migrating to index funds much like drewberz' VINIX,
I try not to buy individual stocks these days. If they soar, I don't know when to sell them, If they dip, I don't have stops in place and I ride too low. Been slowly migrating to index funds much like drewberz' VINIX,
Ebiker01
Well-Known Member
Keep the gl for yourself buddy , you'll need it .
The cuts that they are doing now are just out of desperation , it will prop it up for a few more months. There are also countries that won't do any output cuts.
"The Stone Age did not end for lack of stone . And the oil age will END long before the word runs out of oil. "
James Canton
Ebiker01
Well-Known Member
Profit is profit...10%-30% is ok, get out then can get back in .SL are not needed for great companies.
QS has a lawsuit coming....
QUANTUMSCAPE SHAREHOLDER ALERT by Former Louisiana Attorney General: Kahn Swick & Foti, LLC Reminds Investors With Losses in Excess of $100,000 of Lead Plaintiff Deadline in Class Action Lawsuit Against QuantumScape Corporation - QS
Kahn Swick & Foti, LLC ("KSF") and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have until March 8, 2021 to file lead plaintiff applications in a securities class action lawsuit against QuantumScape Corporation (NYSE:QS), if they purchased...
finance.yahoo.com
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ChezCheese:)
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What do you think about the Gamestop/Reddit thing going on?
Akrotiri
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It’s the first dent in the armor of this bull market. Basically the system subsidizes HFs now through their prime brokers aka Wall Street. This is a public relations nightmare for the Fed and the institutionalized investors. Today the brokerage houses banned trading GME unless it’s for closure; stopping the short squeeze on GME giving the HF’s time to cover their shorts which is in fact illegal. Thousands or millions of day & amateur traders on r/wallstreetbets coordinating out in the open and buying a specific stock is not market manipulation. As the moderators said on r/wallstreetbets “they simply like the stock”.
What is market manipulation is the brokerage houses like Robinhood and others banning trading GME so the HFs can recalibrate (cover their shorts).
I predict the events this week will accelerate some very, very rough times on Wall Street in the next few months.
Mr. Coffee
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I'm actually a little skeptical of that theory.
I find it hard to imagine that thousands or even hundreds of thousands of small-dollar traders, even more-or-less coordinated, can move the market against bigger players who want it to move another way. My best guess would be that some larger players are behind these moves and are using the Robinhood crowd as cover for some more complicated play.
Akrotiri
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Some of the big players did piggy back and join in , Elon musk being one of them but r/wallstreetbets had 3 million active members (I’m one of them) even before this weeks GameStop short squeeze.
The only possible reason a whale would use this situation as cover is if they had a specific interest to destroy a specific hedge fund , with regard to the GME squeeze it would be Melvin capital.
Hedge funds make their money by shorting listed companies on the exchanges so their not going to get many peoples sympathy when their own game is being used against them. Ofcourse it was the brokerage houses which had sympathy for the the affected HFs which raises very serious questions about the free market.
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Mr. Coffee
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Gamestop as of end-of-trading today has a market cap of $13.5B. It had a high market cap (also today) of $34B and a low of about $180MM.
Each of those members on /r/wallstreetbets would have had to have had positions that averaged around $1000 or more to move the stock that much, even in the face of a short squeeze. Like I said I'm skeptical of that.
Like I said there is something else going on and this is just a distraction. My own suspicion is that one or more hedge funds is trying to get the hedge funds who got short squeezed in the last couple of days to unwind their positions on something else totally unrelated. Those folks wouldn't be above using some people on /r/wallstreetbets as useful idiots to make that happen.
When you think of hedge funds, you need to think of the Harkonnens in Dune, except with fewer morals.
Mr. Coffee
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Also, more information is becoming available.
One interesting data point is that there were more short contracts (approximately 2.5 times as many) than actual shares. So things have gone badly sideways and some players are likely to be wiped out in the next couple of days. So redditors buying and holding aren't going to have an impact on that aspect of the situation.
Since trading houses like TD Ameritrade and Robinhood both buy shares on margin for their customers, it makes a lot of sense that they'd stop allowing their customers to purchase those shares: because they have no way of knowing if the purchases are going to go through and at what price.
One interesting data point is that there were more short contracts (approximately 2.5 times as many) than actual shares. So things have gone badly sideways and some players are likely to be wiped out in the next couple of days. So redditors buying and holding aren't going to have an impact on that aspect of the situation.
Since trading houses like TD Ameritrade and Robinhood both buy shares on margin for their customers, it makes a lot of sense that they'd stop allowing their customers to purchase those shares: because they have no way of knowing if the purchases are going to go through and at what price.
Akrotiri
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Exactly.
The fact that there were 2.5 times more short contracts than actual shares is actually common and it’s why hedge funds always seem to make bank when few do. Robinhood and TD stopped trades because they realize their going to have a liquidity problem if this continues.
r/wallstreetbets researched this and that’s one of the reasons why GME was targeted for a squeeze. The members know they’ll likely lose their money on brick and mortar GameStop. The goal is to expose the market is rigged and their succeeding in that goal. I don’t think there’s any conspiracy going on and there’s some one or group pulling the strings and egging on a subreddit. There are members of r/wsb plowing a lot more than 1000$ into GME this week , some into 8 figures actually. Those aren’t whales which float billions. Their just some successful people with surplus capital and time on their hands.
This bell can’t be unrung and it exposes that the market is well... rigged for a select few. Major rough waters are coming because of this and I doubt there is some whale or pod of whales that would risk having the markets stomped out just to take out a few hedge funds and maybe a brokerage firm or two which would most definitely metastasize into a Lehman Brothers 2008 situation.
Simple solution to prevent this in the future is for the Fed to do what Elon musk and others have said needs to be done - make short selling & put options illegal.
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Mike_V
Well-Known Member
The Reddit Revolution
"GameStop" is an ongoing multi billion dollar 'sea change' a hurricane washing up Wall Street.
Up 35% after hours today.
This is an octopus squeeze play that continues, now, and will not be stopped tomorrow.
The Redditors will be probing for 'shorts' in equities and commodities.
Robinhood crashed the market this morning while knowing it was doomed by that action.
They choose to alienate clients to appease the hedge funds because;
After the close, Robin Hood is already borrowing 100s of millions $ from guess who, their real owners.
American Airlines next ?
What's going to POP on 'Earnings Friday' this January?
"GameStop" is an ongoing multi billion dollar 'sea change' a hurricane washing up Wall Street.
Up 35% after hours today.
This is an octopus squeeze play that continues, now, and will not be stopped tomorrow.
The Redditors will be probing for 'shorts' in equities and commodities.
Robinhood crashed the market this morning while knowing it was doomed by that action.
They choose to alienate clients to appease the hedge funds because;
After the close, Robin Hood is already borrowing 100s of millions $ from guess who, their real owners.
American Airlines next ?
What's going to POP on 'Earnings Friday' this January?
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Akrotiri
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And blackberry lol
harryS
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I've been wondering how a few hundred people using Robinhood could cause those market gyrations. For one thing, if you bid for several thousand shares of a stock, even on margin, you owe the money and you better sell it to someone else before it falls.
I was an unwitting beneficiary as one of my stocks was on the short squeeze plan. I happened to have a limit sell on it that got triggered. The stock went on to double after it passed my limit, but today it's down 20% from my limit sell price. I only got back what I had originally paid, but that's a win to me,
I was an unwitting beneficiary as one of my stocks was on the short squeeze plan. I happened to have a limit sell on it that got triggered. The stock went on to double after it passed my limit, but today it's down 20% from my limit sell price. I only got back what I had originally paid, but that's a win to me,
bikeman242
Active Member
I never thought when I made this thread that the day would come with all this gamestop in the news. I expect volatility in the coming weeks, but ultimately, compared to the total market cap of the stock market, the gamestop business will be a small blip in the radar.
I do expect social unrest, and something like another occupy wall street movement. Unfortunately, given the state that America is in today, I hope it remains peaceful.
I did end up profiting several thousand dollars of these various squeezes, so i can't complain.
I do expect social unrest, and something like another occupy wall street movement. Unfortunately, given the state that America is in today, I hope it remains peaceful.
I did end up profiting several thousand dollars of these various squeezes, so i can't complain.
Akrotiri
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It’s not a few hundred people though.
It’s about 5 million members on r/wallstreetbets coordinating in unison out in the open.
harryS
Well-Known Member
OK. I see.
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reed scott
Well-Known Member
Hedge Funds and Short Sellers Down $71B
www.reuters.com
Losses on short positions in U.S. firms top $70 billion - Ortex data
Short-sellers are sitting on estimated losses of $70.87 billion from their short positions in U.S. companies so far this year, data from financial data analytics firm Ortex showed on Thursday.
www.reuters.com
ChezCheese:)
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I don't have any GME or any of the other downhill companies' stock which are getting played this way, but I am concerned about the whole market crashing from this. I started buying stock through Robinhood and hope they survive and continue. The experience I gained gave me the confidence to start actively managing some of our other retirement funds at Fidelity. I don't play these complicated games of using borrowed money or shorting - - I barely understand it - - but now I am concerned that if Robinhood is somehow bankrupted, what happens to the funds I invested through them? Are they held by Robinhood, and thus at risk, or is my ownership of shares independent of them (ie, is Robinhood just the middleman merchant of share)? If this is a stupid question, that just shows you how straight I am in this business...
Akrotiri
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As long as Robinhood can keep borrowing to pay their charge flows (you) ; they’ll survive.
However that solely depends on whether their lenders continue to cover for them. In their case it’s Chase and Goldman Sachs. RH borrowed 1.5 billion yesterday from them. Not sure how willing Chase and Goldman will continue to do so in the next coming weeks giving that this octopus squeeze is spreading as we speak overseas to the Asian markets.
If I were you I would close out my accounts with Robinhood and transfer to another well capitalized Brokerage house that is not over exposed to shorts and being targeted by octopus squeezes.
Personally I don’t see RH surviving this because the retail traders from Reddit are still holding GME so the stock is not falling in price and there seems to be no let up because what’s going on isn’t illegal.
The Reddit traders still aren’t selling , their holding GME so Robin Hood via Melvin capital Hedge fund have to keep buying the inflated shares of GME to cover their shorts and GameStop itself can name any price above the currently traded price. They can do this because it was their stock that was shorted by the hedge funds to begin with. That’s why it’s so risky in the first place. Robinhood is in very, very bad situation; which is why they had to borrow from their lenders. Keep in mind this stock was trading at 3$ last year and it’s up to around 400$.
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