Yeah, it took a dive last week and rallied. It's certainly interesting to see this phenom happening.
Gamestop
- Thread starter Bonerfarts
- Start date
I'm hearing rumblings that most of the early shorts covered their shorts last week during the trade halt. I think this will bleed out.
No idea if this is accurate or not
10:39a ET 2/1/2021 - Benzinga
*CORRECTION: FinTech Data Analytics Co., S3 Partners, Says GameStop Shares Short As Of Latest Data Check Down From ~62M In Prior Week To 27.13M Shares
Mentioned: GME SPY
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
10:39a ET 2/1/2021 - Benzinga
*CORRECTION: FinTech Data Analytics Co., S3 Partners, Says GameStop Shares Short As Of Latest Data Check Down From ~62M In Prior Week To 27.13M Shares
Mentioned: GME SPY
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Volume looks low to me. From Yahoo.
Volume 15,444,013
Avg. Volume 27,457,036
Compared to AMC
Volume 218,506,238
Avg. Volume 94,953,304
Volume 15,444,013
Avg. Volume 27,457,036
Compared to AMC
Volume 218,506,238
Avg. Volume 94,953,304
I don't think the rumblings are true. Fidelity still doesn't allow shorting on GME so I'm guessing it's still over 100%. I tried to short 1 share just to see if it were possible.
Do you think this means GME will keep dropping to where it was a month ago, or shoot back up later in the day? I'm a total amateur so it's been fun reading your thoughts on all of this.
good lord people are dumb.
Gamestop's move is done, it will be in gradual decline from here, as purchasing power is limited and the animal spirits begin to wane. A natural phenomenon. If I ever shorted a stock, I would do it here, but thank goodness I can't because the liability is infinite as we have seen.
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You could be right, but here's a different take on purchasing power. A good portion of new buys can't be made because of Robinhood. It may take a day or two for a new account at TDA, etc to get funded. So buys may pick up again today or tomorrow.
I am not so sure about that. There is some funny business going on with this stock right now.
Maybe, but once a stock heads down, longs will want to stop losses. Once a stock drops, climbs take longer. GME's climb has been simply speculators wanting a quick profit.
If rumors are true it will bleed off, but now more shorts are coming into to take advantage. These shorts I imagine shorted the stock at a much higher price, depending on the short volume and their short price this could spike back up if we see GME gain back. If these new shorts get too aggressive and we see 140% short interest again this will moon again. I'm out for now.
According to this article, short interest is down to ~50%. Legit or disinfo from the Hedge Funds?
I’m reading a Bloomberg article now saying short interest is at 50% citing both S3 Partners and IHS Markit as sources.
GME is no longer a game guys - sorry about the losses most of you are going to suffer. The early in traders will make millions off the retail crowd’s backs though.
Late to the game retail traders will lose millions.
But Hedge Fund shorts lost BILLIONS.
Edit: I don't have any skin in this game. I tried to buy at $75, but it never dipped so my limit order didn't hit.
Question, how did the HF cover their short positions last week during that time period when trading was halted? I saw someone post that earlier in the thread. If trading was halted doesn't that mean, by definition, no buying or selling went on? Or was the exchange bypassed and direct transactions occurred? If so, that's pretty shady.
Trading wasn't fully halted. Only for the majority of the retail buyers (Robinhood) was it halted. Retail investors couldn't buy the stock, or was limited to 5-10 shares per person but could sell unlimited shares. There were also limited option contracts for retail. Institutional players (banks, hedge funds, mutual funds) were able to buy and sell freely. With the limited buy side and unlimited sell side for retail, this caused the price to decrease and allowed the HFs to cover in a controlled manner.
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Well that's BS too. This should put an end to the trading model that RH is built on.
So say I am long on a stock. Can my broker lend those shares out to a short seller? They get the interest, but I dont get anything out of it? Is their a way retail investors can tell their brokerage not to lend their shares? If you are long, why would you want to contribute to short sellers trying to push the price down?
You have to check your service agreement. There may be some kind of securities lending agreement. Very common in the institutional world. It usually requires at least 102% collateral on the short sellers part.
yes. Yes. Yes. You wouldn’t.
This whole thing has been fascinating to watch, and not necessarily in a good way. This should be eye opening for a lot of people.
They had an amazing number of new users last week. I think they were the most downloaded app in Itunes last week. They bumbled the opportunity for sure, but I think there are quite a few who saw last week as a net win for RH. I myself pulled all my funds from them and will not be going back.
Feels like I'm watching an episode of Silicon Valley. Pied Piper = Robinhood
So do these people who are leading the charge on some of these (GameStop, AMC, Silver) go in and buy a bunch, then post on Reddit and people run to it inflating the price and then they sell and make a mint?
Possibly but the bigger issue is the passive funds like vanguard ect, that generally have 80% of the float. Those are all up for sale for shortsale transactions to get extra income.
institutional managers often times lend their securities out to make more money from short sellers who wish to pay for the borrow. This is especially common on the passive side (think index fund that only cares about tracking the appropriate index for as cheaply as possible - the interest helps them recoup the small fees they charge on an index fund)... but plenty of long-only mutual funds do this too. And yes, they can decide to not allow lending of their shares too, and it happens at times, but it’s rare because frankly these situations are rare too.
None of this is a wake up call to professionals. The only thing that’s going to change is:
1) nobody will be disclosing anything beyond what’s required for short positions going forward.
2) short seller reports are likely going away for a while. These short sellers really do help police fraudsters but they’re not going to want to disclose their vulnerability to the internet gangs going forward.
possibly 3) the SEC will watch these chat rooms a lot closer going forward.
Unless you owned Long before the influencers went to work you need to steer clear from these things. Even then my suggestion would be to not get greedy and don't stay in one of these too long.
I suspect the SEC will be looking into this when it is all said and done. Basically front running. Hopefully the SEC will also be looking into the practices of hedge funds as well.
So has this lost the momentum that it had? Are people now moving onto the next big, new, hot thing? It opened at $325, closed at $225, and is down to $208 so far in after hours trading.
Is that poor kid from the screenshot earlier today gonna have to figure out another plan since his college tuition money is circling the drain?
