Gamestop
- Thread starter Bonerfarts
- Start date
The hedge funds have taken the place of the Deep State. Every piece of news is explained away, "a distraction by the hedge funds!", in cahoots with the Biden admin! Yellen is involved! All sorts of allegations.
Hard to tell if it's genuine belief or just something to cling to as the stock comes back from the moon... or there's some shreds of truth that underpins their theories.
Yes, they do. Given the current climate in the country does THAT need to be looked at to? Is it fair? Is this equality? Those that can pay for access get it and can profit, those that can't afford it don't get access and lose. Now THAT is privilege.
Realize I'm just asking these questions to be provocative.
If we look at that then we should go ahead and extrapolate it out to everything else that people pay to get access to:
People that can pay for food get to eat.
People that pay for cars get to drive.
There are no shreds of truth to it. It’s just victimization basking nonsense.
You are nuts if you don't think there is some manipulation going on. Absolutely nuts. And I have zero dog in this fight. I find the whole thing fascinating and will see what comes out of all of it.
You seem awfully hysterical to have zero dogs in the fight.
It frustrates me to see the way some of this has went down. But I took all of it out on Thursday and Friday last week. I wanted nothing more to do with it as it was pissing me off and I had very little in play, but made some nice profits.
You should be concerned with the people who pumped up the stock to try to hurt the shorts. People shouldn't play games when they don't understand the game, the other players, or the rules. People who invest in the stock market should always be prepared to lose their investment. Everyone who lost money, short or long, deserved to lose their money. They can't blame anyone but themselves.
I get that, but I also feel like the day I’m rooting for hedge funds is the day I’ve lost my soul.
Oh, I don't disagree with any of this. I hope the SEC investigates both sides of this, but they won't. Again, this will all be water under the bridge in a week or so from now. I do wonder if this is why that deep value guy hasn't sold any of his shares. I wonder if he is concerned about all the attention that might be on him right now.
I've never liked shorts. They tend to artificially move market prices down. That said, they provide balance, and a small measure of protection from the pump and dump folks.
It's been a strange few days. My watch list has been very quiet today. Way less movement, up or down, than usual. It's almost like mainstream traders are waiting for things to return to normal. Don't get me wrong, volume is still very high. There just seems to be a little less volatility on stocks that haven't been targeted in some way.
That's because everyone is to busy watching the gamestop drama unfold. With that said, the market has had a nice couple days and a handful of stocks are smoking right now.
You can't call GME a pump and dump when the HV shorted that stock to 130%. I mean, that sort of naked selling is just as bad. The HV's got caught with their pants down, simple as that.
The three main problems I have with this situation:
1) Naked shorting and shorting more than 100% of the float. This needs to be addressed/fixed moving forward.
2) The allegations of "cloning" shares/brokers supposedly selling more shares than were available to help the shorts cover.
3) Brokers halting buys for retail investors but allowing the big dogs to trade freely.
I agree with 1 & 2.
3 was unavoidable because of capital requirements and individuals trading on margin they couldn't back up, or trying to sell a new position before funds settled. The big dogs aren't trading on Robinhood, aren't trading on margin, and have a large enough cash position they aren't concerned with waiting for trades to settle.
I know this is off topic, but did anyone follow me on CCIV? It's up to $31+ just off of a rumor.
Young man cashes in on GameStop stock, buys Nintendo Switches for children’s hospital
https://www.14news.com/2021/02/02/y...KxxMjpjk0NPZGn3iXLveSpw6A7S9zdtt3WgE_9Ji0oCaI
https://www.14news.com/2021/02/02/y...KxxMjpjk0NPZGn3iXLveSpw6A7S9zdtt3WgE_9Ji0oCaI
It's getting pricy already. I could probably afford an actual Lucid Air with the stock price this high.
Why is the stock plummeting?
Mark Cuban:
“Supply and Demand, but in this case it literally could be because the source of demand has been crippled . When RH shut it down, then cut it back, lets put aside why, they cut of the greatest source of demand. They created a RobinHood Dive. No RH buyers, means sellers lower their price to find buyers. And they keep on lowering it till they find buyers. Keep the most natural buyers out of the market and the price keeps on FALLING.
Then that drop accelerates because the more the stock falls the more owners who bought on margin get margin calls. When that margin call happens, its brutal. They just take your stock, send you a **** you note and sell your stock at the market price, no matter how low. They just want to get your cash to pay back the loan.
That then accelerates the selling.
Which then leads to what we are seeing in the market right now with GME in particular
So what to do ?
If you can afford to hold the stock, you hold. I dont own it, but thats what i would do.
Why ? because when RH and the other online brokers open it back up to buyers, then we will see what WSB is really made of. That is when you get to make it all work.
I have no doubt that there are funds and big players that have shorted this stock again thinking they are smarter than everyone on WSB.
I know you are going to hate to hear this, but the lower it goes, the more powerful WSB can be stepping up to buy the stock again. The only question is what broker do you use . Do you stay with RH , who is going to have the same liquidity problems over and over again, or do you as a group find a broker with a far, far, far better balance sheet that wont cut you off and then go ham on Wall Street.”
Mark Cuban, Feb 2 2021
Mark Cuban:
“Supply and Demand, but in this case it literally could be because the source of demand has been crippled . When RH shut it down, then cut it back, lets put aside why, they cut of the greatest source of demand. They created a RobinHood Dive. No RH buyers, means sellers lower their price to find buyers. And they keep on lowering it till they find buyers. Keep the most natural buyers out of the market and the price keeps on FALLING.
Then that drop accelerates because the more the stock falls the more owners who bought on margin get margin calls. When that margin call happens, its brutal. They just take your stock, send you a **** you note and sell your stock at the market price, no matter how low. They just want to get your cash to pay back the loan.
That then accelerates the selling.
Which then leads to what we are seeing in the market right now with GME in particular
So what to do ?
If you can afford to hold the stock, you hold. I dont own it, but thats what i would do.
Why ? because when RH and the other online brokers open it back up to buyers, then we will see what WSB is really made of. That is when you get to make it all work.
I have no doubt that there are funds and big players that have shorted this stock again thinking they are smarter than everyone on WSB.
I know you are going to hate to hear this, but the lower it goes, the more powerful WSB can be stepping up to buy the stock again. The only question is what broker do you use . Do you stay with RH , who is going to have the same liquidity problems over and over again, or do you as a group find a broker with a far, far, far better balance sheet that wont cut you off and then go ham on Wall Street.”
Mark Cuban, Feb 2 2021
Mr. Cuban, Robinhood is a very small broker. There are lots of other brokers out there. I know you want to encourage the little guy, but just like on Sharktank, there's a time to get real. People who don't understand the market are doing little more than gambling. Heck, even people who understand the market know that. Mr. Cuban, please be careful with your encouragement. There are a lot of people who can't afford to gamble.
GME closed at 90.00. Over 70M shares traded. We'll see what happens after hours. People will have a little time to figure out their strategy overnight. It appears a few traders were paying the late morning bounce, then exited again. I expect more retreat tomorrow.
It's pretty sad seeing how many people are rooting for the WSB guys to lose in this fight. The financial media has tried everything to get these guys to sell (proof: see SLV today), and shutting down the platform that many of them were using to buy stopped the squeeze last Thursday.
You can't win if you are playing on different playing fields, and I suppose shame on WSB for assuming they could play with the same rules as HFs. Its just disappointing seeing so many people wanting them to lose.
This article was written in 2014, and explains exactly what has been happening to GME:
Short Attacks
You can't win if you are playing on different playing fields, and I suppose shame on WSB for assuming they could play with the same rules as HFs. Its just disappointing seeing so many people wanting them to lose.
This article was written in 2014, and explains exactly what has been happening to GME:
Short Attacks
Few people are rooting against these people. Most just wish they'd open their eyes and see that the conclusion was always going to be a train-wreck. If they were looking for a quick buck, I understand and feel kind of bad. Hopefully, a lesson learned. If they were in it just to stick it to the shorts, then that's a Don Quixote-type move.
We're talking Gamestop here, folks. This was their ticket to early retirement? There were a lot of gullible people relying on message board names for all of their info. These were not dumb people, just naïve. For a lot of these folks, this was their first experience using leverage. Yikes.
I feel for these folks because I did a lot of the same things back in the late '90s. I honestly hope that the prices goes up so people will take that opportunity to sell......hopefully at not too much of a loss.
My biggest take away is the little guys were owning the HF and then Robinhood and other platforms halted only retail traders from doing anything but selling. Meanwhile HF we’re still in action while retail was on the sidelines. Then after Robinhood came back it was too late the momentum had been slowed and to further the slide these platforms limited trades on only certain stocks targeted due to being over shorted. This all but killed it for retail traders. It doesn’t take a genius to connect the dots. I hope this is looked into because this stinks to high heaven. That said, I have little faith anything will be done. Wall Street has proven they are too big to fail.
Few people are rooting against these people. Most just wish they'd open their eyes and see that the conclusion was always going to be a train-wreck. If they were looking for a quick buck, I understand and feel kind of bad. Hopefully, a lesson learned. If they were in it just to stick it to the shorts, then that's a Don Quixote-type move.
We're talking Gamestop here, folks. This was their ticket to early retirement? There were a lot of gullible people relying on message board names for all of their info. These were not dumb people, just naïve. For a lot of these folks, this was their first experience using leverage. Yikes.
I feel for these folks because I did a lot of the same things back in the late '90s. I honestly hope that the prices goes up so people will take that opportunity to sell......hopefully at not too much of a loss.
Most of the WSB are willing to ride it to $0. It has nothing to do with the Gamestop the company. It has everything to do with HF's shorting 140% of available stock, manipulating the market, and screwing over the little guy, time and time again.
Many people are rooting against them; you can see it in this thread. I agree that there are a lot of naive, new investors who probably don't understand the consequences of some of the trades they've made.
But you didn't address anything about the game not being fair. Is that just the way it is? and we shouldn't question it? The HF are going to win, so why fight?
have a bro who works at a large financial institution on Wall Street and prices ipos, actually now manages a team that prices IPOs. his gf works at a hedge fund.
Anyhow, talked to him this weekend and he really laid into the wsb’s and among many things he pointed out, most of these institutional investors are the funds for the many such as pensions a lot of our teachers, firefighters, policemen. Etc. public officials rely upon and if the pension funds were only allowed to invest in t-bills, they would be sol. Young generations don’t have pension funds like the boomers, so maybe us young people are upset about that?
But also he pointed out this has all the makings of a pump and dump scheme, even if that wasn’t the intent, anyone who has invested in penny stock knows the feeling, see a hot stock, put a few bucks in , it goes up 100% and then boom you’ve lost it all when the pumpers dump. Even if that wasn’t the intent, that is now the outcome.
Anyhow, talked to him this weekend and he really laid into the wsb’s and among many things he pointed out, most of these institutional investors are the funds for the many such as pensions a lot of our teachers, firefighters, policemen. Etc. public officials rely upon and if the pension funds were only allowed to invest in t-bills, they would be sol. Young generations don’t have pension funds like the boomers, so maybe us young people are upset about that?
But also he pointed out this has all the makings of a pump and dump scheme, even if that wasn’t the intent, anyone who has invested in penny stock knows the feeling, see a hot stock, put a few bucks in , it goes up 100% and then boom you’ve lost it all when the pumpers dump. Even if that wasn’t the intent, that is now the outcome.
I don't think most of the WSB want to lose money to prove a point. I'm curious why you think that.
Agreed. The goal is to make money and prove a point. There are very few people who are willing to lose a lot of money to prove a point.
Wait a second. Just want to make sure I got this right. Because these pensions are invested in the hedge funds, they are exempt from their illegal activities? And, there was no pump and dump. However, there was naked shorting. How does your bro feel about that? Again, you can’t make this shit up.
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Oh, make no mistake, the financial world as well as some on this board want the small retail guys to fail. It is astonishing the lack of commentary on the hedge funds blatant manipulation And illegal activities.
Agree with all of this. What happened last Thursday was Criminal. Good news though. I am hearing from some people I know pretty high up in the Wall Street world that the sec has already said they will be looking into the actions of last Thursday with certain activities. Not that I believe anything will happen.
Amen.
Often the public pension funds cleverly disguise their involvement with "questionable stock" which would raise an eyebrow if the public was aware of their relationship. That is where the juiciest returns are to be made so they will do what they have to do to "get in on the action".
The firearm used in the Sandy Hook massacre was mfg by Freedom Arms who in turn was owned by Remington. CalSTRS is one of the largest pension funds in the country and in 2015 managed $190 Billion of California teachers pensions. CalSTRS didn't directly hold any of Freedom Grp (Remington) but when you peel away the layers of the onion they were investors in 3 funds managed by the private equity firm Cerberus Capital who guess what? Had substantial holdings in the AR-15 producing Freedom Group.
Kind of ironic that Cerberus is named after: In Greek mythology, Cerberus (/ˈsɜːrbərəs/; Greek: Κέρβερος Kérberos [ˈkerberos]), often referred to as the hound of Hades, is a multi-headed dog that guards the gates of the Underworld to prevent the dead from leaving.
Predicting the retail investors would fail wasn’t rooting for them to fail. Didn’t take a degree in finance to know what the inevitable outcome would be.
I sold 1/4 of my shares today. Had to take some gains because I’m betting on a rumor right now. Up 80%
Opinion | Why Brokers Had to Restrain Trading in GameStop Shares
They were minimizing their own financial and regulatory risk, not trying to bail out hedge funds.
www.wsj.com
