Wall Street Bets: The EBR Edition

Akrotiri said:
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.
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What brokerage outfit would you recommend? I used to use Etrade back in the 90s during the dot com frenzy...
 
Taylor57 said:
What brokerage outfit would you recommend? I used to use Etrade back in the 90s during the dot com frenzy...
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I wouldn’t recommend one because I’m not a financial advisor. I’m an experienced day trader so I know what is happening but I never imagined a subreddit of 5 million millennials would be able to coordinate such a massive octopus squeeze like this.

It’s uncharted territory and quite unprecedented, their like the Death Star from Star Wars right now. Their targeting stocks that have been shorted by certain hedge funds and then they coordinate a massive squeeze on them.

The brokerage firm I use is Merrill Edge.
 
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If Robinhood refuses to deal in these stupid stocks (I'm just using this as a shorthand for dying companies that it seems really stupid to invest in), how would that affect the power of these digital wall st wolves to run the board?

Can one transfer shares to another brokerage, or do you have to liquidate them and start from scratch again?
 
ChezCheese:) said:
If Robinhood refuses to deal in these stupid stocks (I'm just using this as a shorthand for dying companies that it seems really stupid to invest in), how would that affect the power of these digital wall st wolves to run the board?

Can one transfer shares to another brokerage, or do you have to liquidate them and start from scratch again?
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Precisely why this situation is so interesting. Those dying companies are the ones that always get shorted. They get shorted by the hedge funds which is how these HFs make their money for the most part. This Reddit situation might actually permanently damage the whole business model of how hedge funds conduct their business thus hurting them tremendously financially. And to be honest there will be very few people and companies that will feel sorry for these hedge funds if they do go the way of the dodo🦤.


Yes it’s possible to transfer your holdings from your current brokerage house to another. You don’t have to liquidate them. It’s a fairly straightforward process called ACATS. There’s some paperwork involved and your soon to be former brokerage house has to sign off on it (they usually do) and it takes 6 business days.
 
I peeked in on the Reddit/Wall St Bets website and it is hillarious. Guys and gals buying up the GME and cheering each other on to HOLD, HOLD, HOLD. One guy asked the group " So now what do I do for 2 days?"

The reply was classic- "Smoke weed, drink beer and eat pizza" They also use the word retard and autism quite a bit. Not sure I have figured that part out yet!
 
Taylor57 said:
I peeked in on the Reddit/Wall St Bets website and it is hillarious. Guys and gals buying up the GME and cheering each other on to HOLD, HOLD, HOLD. One guy asked the group " So now what do I do for 2 days?"

The reply was classic- "Smoke weed, drink beer and eat pizza" They also use the word retard and autism quite a bit. Not sure I have figured that part out yet!
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Yea their quite the Motley Crue and refer to themselves as retard and autistic lol. Their even posting memes of Spartans from the movie 300 HOLD THE LINE !!


Here’s an article from zero hedge from a few hours ago about Robinhoods current situation. Since you’re a client there I think you you should read it.

ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
www.zerohedge.com www.zerohedge.com
 
It is pretty obvious now that quite a bit more than a bunch of redditors short-squeezing a few hedge funds is going on:

Bloomberg - Are you a robot?

www.bloomberg.com

My own guesses are that (1) this is just a pump-and-dump scheme with new-tech dressing, or (2) collateral damage for a more complex trade.

Keep in mind also that a "hedge fund" by definition doesn't simply do one trade, like shorting a stock or portfolio of stocks. They do an interconnected set of trades designed to make them money no matter what direction the markets move. To really do that well and consistently (most do not even come close) you usually need to exploit some inefficiency in how the market itself works, and since those inefficiencies change over time your trading strategy would have to change over time as well.
 
Mr. Coffee said:
It is pretty obvious now that quite a bit more than a bunch of redditors short-squeezing a few hedge funds is going on:

Bloomberg - Are you a robot?

www.bloomberg.com

My own guesses are that (1) this is just a pump-and-dump scheme with new-tech dressing, or (2) collateral damage for a more complex trade.

Keep in mind also that a "hedge fund" by definition doesn't simply do one trade, like shorting a stock or portfolio of stocks. They do an interconnected set of trades designed to make them money no matter what direction the markets move. To really do that well and consistently (most do not even come close) you usually need to exploit some inefficiency in how the market itself works, and since those inefficiencies change over time your trading strategy would have to change over time as well.
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In my opinion Bloomberg LP is bias in this sort of situation. They have every rea$on to muddy the waters and cast doubt on the fact that a few millions of millennials on a sub Reddit can stomp the market by playing the hedge funds at their own game. I don’t buy what Bloomberg is writing in that article. Bloomberg is on the institutional traders side , they don’t want retail and day traders to be able to do what Bloomberg LP clients have been doing for decades.

Whats going on isn’t complicated no matter how much the elites and their banksters and some legacy financial media companies try to make it out to be.

It can’t be a pump and dump because their holding the stock. It’s already up 1000% in one week! If it were a pump and dump they would have dumped it by now.
 
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Akrotiri said:
In my opinion Bloomberg LP is bias in this sort of situation. They have every rea$on to muddy the waters and cast doubt on the fact that a few millions of millennials on a sub Reddit can stomp the market by playing the hedge funds at their own game. I don’t buy what Bloomberg is writing in that article. Bloomberg is on the institutional traders side , they don’t want retail and day traders to be able to do what Bloomberg LP clients have been doing for decades.

Whats going on isn’t complicated no matter how much the elites and their banksters and some legacy financial media companies try to make it out to be.

It can’t be a pump and dump because their holding the stock. It’s already up 1000% in one week! If it were a pump and dump they would have dumped it by now.
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For trades to happen at all somebody has to be selling. So I'm not sure who the "they" you are referring to is, exactly.

Anyway, I might be wrong and I might not be. Only time will tell..
 
Akrotiri said:
Yea their quite the Motley Crue and refer to themselves as retard and autistic lol. Their even posting memes of Spartans from the movie 300 HOLD THE LINE !!


Here’s an article from zero hedge from a few hours ago about Robinhoods current situation. Since you’re a client there I think you you should read it.

ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
www.zerohedge.com www.zerohedge.com
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Am I a client at Robin Hood?
 
Mr. Coffee said:
For trades to happen at all somebody has to be selling. So I'm not sure who the "they" you are referring to is, exactly.

Anyway, I might be wrong and I might not be. Only time will tell..
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Not in this situation.

The GME stocks being bought are all short sells that are being lended to the buyers at super inflated prices by the brokerage firms because they hold these shorted stocks on margin. The brokerage firms and hedge funds don’t see any profit because they shorted the stock that it would be way lower , now that the price is higher ,way higher they have to pay the difference to cover their margins. There are also 3 times more shorted shares of GME than actual GME stock thus exposing the hedge funds that shorted GME in the first place. Since the Redditors are buying up all the shorts raising the price tremendously and putting the squeeze on the brokerage firms that have to keep covering the higher and higher price of a stock that was supposed to be 1000% less. The hedge funds that bet on the way lower stock price by shorting it have to return the stocks of GME they do hold to the Brokerage houses. Thats the “ selling”. This results in total losses if the redditors keep holding these lended short shares.
 
Akrotiri said:
Not in this situation.

The GME stocks being bought are all short sells that are being lended to the buyers at super inflated prices by the brokerage firms because they hold these shorted stocks on margin. The brokerage firms and hedge funds don’t see any profit because they shorted the stock that it would be way lower , now that the price is higher ,way higher they have to pay the difference to cover their margins. There are also 3 times more shorted shares of GME than actual GME stock thus exposing the hedge funds that shorted GME in the first place. Since the Redditors are buying up all the shorts raising the price tremendously and putting the squeeze on the brokerage firms that have to keep covering the higher and higher price of a stock that was supposed to be 1000% less. The hedge funds that bet on the way lower stock price by shorting it have to return the stocks of GME they do hold to the Brokerage houses. Thats the “ selling”. This results in total losses if the redditors keep holding these lended short shares.
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Cuz they gunna get the Tendies with their Diamond hands!
 
Akrotiri said:
The GME stocks being bought are all short sells that are being lended to the buyers at super inflated prices by the brokerage firms because they hold these shorted stocks on margin. The brokerage firms and hedge funds don’t see any profit because they shorted the stock that it would be way lower , now that the price is higher ,way higher they have to pay the difference to cover their margins. There are also 3 times more shorted shares of GME than actual GME stock thus exposing the hedge funds that shorted GME in the first place. Since the Redditors are buying up all the shorts raising the price tremendously and putting the squeeze on the brokerage firms that have to keep covering the higher and higher price of a stock that was supposed to be 1000% less. The hedge funds that bet on the way lower stock price by shorting it have to return the stocks of GME they do hold to the Brokerage houses. Thats the “ selling”. This results in total losses if the redditors keep holding these lended short shares.
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I genuinely hope this works out well for you and you don't end up holding a big stinky bag. All the best...
 
Mr. Coffee said:
I genuinely hope this works out well for you and you don't end up holding a big stinky bag. All the best...
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I don't have a dog in this fight so to speak, but can't wait to see how GME opens tomorrow morning for pure entertainment. My guess is that it is going to keep going higher on momentum alone, but yes, at some point there will be some serious bag holders. After lurking on the Reddit board abit, it's unreal how many young Redditers there are that have purchased only 1 share of the stock just to be in the game...
 
ChezCheese:) said:
"Cuz they gunna get the Tendies with their Diamond hands!" Can someone translate that into English?
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Sure. The investors that are buying and holding are going to get the Tendies (Chicken Tenders= Cash) because their hands are made out of diamonds as opposed to paper allowing them to withstand any pressure from the Hedge Funds. Youre welcome! I like the stock. This is not financial advice.
 
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