Investing questions

[drayer54]

GameStop has taught me and reinforced that the best investing strategies are found on Reddit and Twitter from investing shitposters.

 

[Cackalacky2.0]

Hero

Will be smiling all day if Melvin goes under this week as is being reported. This is what these people do to other businesses - they've earned it

-Hey how'd you lose your billions?

-long story involving millions of internet trolls and Gamestop.

So great.

This is amazing. I had no idea. It makes me question what Im doing here all day with you schlups.

 

[Ndaccountant]

This is amazing. I had no idea. It makes me question what Im doing here all day with you schlups.

This is precisely the reason why firms don't disclose the extent of their short positions. This was a very unique circumstance obviously, but is something that happens quite frequently between hedge funds when they get "dirt" on each other. Usually doesn't play out in public though lol.

 

[IrishLax]

This is precisely the reason why firms don't disclose the extent of their short positions. This was a very unique circumstance obviously, but is something that happens quite frequently between hedge funds when they get "dirt" on each other. Usually doesn't play out in public though lol.

Yeah, this all kicked off because some arrogant clown went on TV and publicly advertised their hedge fund's short positions on Gamestop, right? And then Reddit did its thing.

 

[Wild Bill]

This is amazing. I had no idea. It makes me question what Im doing here all day with you schlups.

I totally missed this until last night b/c I was workign all day like a sucker.

NASDAQ is threatening to halt trading.

THE WRONG PEOPLE ARE MANIPULATING THE MARKETS!

And my trading platform is down. I'm sure it's totally a coincidence. Anyone else use Ally?

Per twitter people, Allly, TD and E-Trade are all down or have been down. The money changers are taking this well.

This is infuriating.

 

[Ndaccountant]

I totally missed this until last night b/c I was workign all day like a sucker.

NASDAQ is threatening to halt trading.

THE WRONG PEOPLE ARE MANIPULATING THE MARKETS!

And my trading platform is down. I'm sure it's totally a coincidence. Anyone else use Ally?

Mine is working fine.

<iframe src="https://giphy.com/embed/l2JdWPIgVK83qxB4Y" width="480" height="366" frameBorder="0" class="giphy-embed" allowFullScreen></iframe><p><a href="https://giphy.com/gifs/season-8-the-simpsons-8x21-l2JdWPIgVK83qxB4Y">via GIPHY</a></p>

 

[tussin]

Yeah, this all kicked off because some arrogant clown went on TV and publicly advertised their hedge fund's short positions on Gamestop, right? And then Reddit did its thing.

Not really -- the level of shorting was always public information. The specific players were not always known, but it doesn't impact the trade that much.

 

[Wild Bill]

Not really -- the level of shorting was always public information. The specific players were not always known, but it doesn't impact the trade that much.

Wouldn't it from this perspective - If this type of pressure is put on several different firms who hold equal risk, they are in a better position to withstand the pressure than one firm holding a big pile of risk? Since Melvin was off on their own iwth this giant position, it exposed them and the spergs on reddit used it against them.

I could be wrong here - this is my understanding.

 

[Wild Bill]

Mine is working fine.

<iframe src="https://giphy.com/embed/l2JdWPIgVK83qxB4Y" width="480" height="366" frameBorder="0" class="giphy-embed" allowFullScreen></iframe><p><a href="https://giphy.com/gifs/season-8-the-simpsons-8x21-l2JdWPIgVK83qxB4Y">via GIPHY</a></p>

You're a king NDA. I'm just a peasant over here trying to make a a few shekels. But seriously, your ally account is working?

 

[Ndaccountant]

You're a king NDA. I'm just a peasant over here trying to make a a few shekels. But seriously, your ally account is working?

Sorry, don't use Ally. I have 4 different platforms (don't ask), but not Ally. All seem to be working okay ATM.

 

[tussin]

Wouldn't it from this perspective - If this type of pressure is put on several different firms who hold equal risk, they are in a better position to withstand the pressure than one firm holding a big pile of risk? Since Melvin was off on their own iwth this giant position, it exposed them and the spergs on reddit used it against them.

I could be wrong here - this is my understanding.

I don't think so. A margin call is a margin call -- the fact that Melvin holds so much just means they are likely to be liquidated from it. I could be wrong though.

Also, this isn't just Melvin. It's fun to rag on them because they are dunzo, but there are many other players here.

 

[IrishLax]

I totally missed this until last night b/c I was workign all day like a sucker.

NASDAQ is threatening to halt trading.

THE WRONG PEOPLE ARE MANIPULATING THE MARKETS!

And my trading platform is down. I'm sure it's totally a coincidence. Anyone else use Ally?

Per twitter people, Allly, TD and E-Trade are all down or have been down. The money changers are taking this well.

This is infuriating.

Robinhood down too. It's funny how it's totally kosher for funds and banks to manipulate the market as they see fit, but when the proletariat gets a taste of power it literally crashes their house of cards.

 

[TorontoGold]

Robinhood down too. It's funny how it's totally kosher for funds and banks to manipulate the market as they see fit, but when the proletariat gets a taste of power it literally crashes their house of cards.

You got love the talk among them asking for "bailouts", especially after stuff like https://www.bloomberg.com/news/arti...ers-are-claiming-bailouts-as-small-businesses

My firm has a couple decently sized CA based hedge funds as clients, and the pandemic was so beneficial to them. Nothing like buying up destressed assets on the cheap with incredible financing rates.

 

[Wild Bill]

Sorry, don't use Ally. I have 4 different platforms (don't ask), but not Ally. All seem to be working okay ATM.

Can you throw 10k at Gamestop for me? We've thrown shit at each other on a message board for years so you know I'm good for it.

I don't think so. A margin call is a margin call -- the fact that Melvin holds so much just means they are likely to be liquidated from it. I could be wrong though.

Also, this isn't just Melvin. It's fun to rag on them because they are dunzo, but there are many other players here.

Ton of different players. The issue here is that Melvin was way overexposed - to a point where they couldn't/wouldn't just take the loss and move on. Instead, they doubled down. If a giant short position is held equally by several firms, they are all more likely to eat shit on the trade and move forward. Melvin overexposed themselves and knew it. What they didn't know is that they'd run out of money if things went bad.

Robinhood down too. It's funny how it's totally kosher for funds and banks to manipulate the market as they see fit, but when the proletariat gets a taste of power it literally crashes their house of cards.

And if this isn't enough to make you violently angry, there's this:

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">CNBC's David Faber said he is hearing a number of hedge funds are in similar trouble that Melvin Capital saw in its GameStop <a href="https://twitter.com/search?q=%24GME&src=ctag&ref_src=twsrc%5Etfw">$GME</a> and may need to be bailed out. <a href="https://t.co/KAiADPUnOD">pic.twitter.com/KAiADPUnOD</a></p>— Streetinsider.com (@Street_Insider) <a href="https://twitter.com/Street_Insider/status/1354430650154176514?ref_src=twsrc%5Etfw">January 27, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Hedge funds need a bailout.

 

[Ndaccountant]

I don't think so. A margin call is a margin call -- the fact that Melvin holds so much just means they are likely to be liquidated from it. I could be wrong though.

Also, this isn't just Melvin. It's fun to rag on them because they are dunzo, but there are many other players here.

I think the point is that if you know the players and their position, you can force the margin call. Sure, squeezes happen all the time. But the extent, veracity and timing can be impacted if you know who and how much. They aren't forced to sell with the margin call obviously. They could simply put more collateral in and wait it out. But if people know who you are and the size of your portfolio, "waiting it out" doesn't work. That is why anonymity is critical.

 

[NEIIrish]

I jumped on AMC last night in the low 7s and sold premarket at 16.50 then jumped back into it after market opened and it dipped. Hoping for 20 + by EOD

 

[ab2cmiller]

[TWEET]https://twitter.com/tomgara/status/1354445920226713604[/TWEET]

 

[DCDomer]

 

[Cackalacky2.0]

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Blockbuster stock up 774% this morning <a href="https://t.co/ExnZbfl3f6">https://t.co/ExnZbfl3f6</a></p>— Tom Gara (@tomgara) <a href="https://twitter.com/tomgara/status/1354445920226713604?ref_src=twsrc%5Etfw">January 27, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

The Onion is always so funny.

 

[drayer54]

Hedge funds need a bailout.

I hear there are several high paying new opportunities in the solar industry and for those learning to code.

 

[BobbyMac]

That was the craziest 12 hours of my life. I haven't slept. Tried to make sense of the BB and AMC but it's too much to babysit while sitting on the gamestop volcano. And people wonder why Wall St was full of cocaine in the 80's?

Wild ride this morning, watched it fall $100 and basically got lucky it turned around at $250 because I was seconds away from selling. Planned to sell at $400, didn't make it and got out at $340. Crazy two days.

Thanks again Elon.

 

[drayer54]

That was the craziest 12 hours of my life. I haven't slept. Tried to make sense of the BB and AMC but it's too much to babysit while sitting on the gamestop volcano. And people wonder why Wall St was full of cocaine in the 80's?

Wild ride this morning, watched it fall $100 and basically got lucky it turned around at $250 because I was seconds away from selling. Planned to sell at $400, didn't make it and got out at $340. Crazy two days.

Thanks again Elon.

Coward

 

[dublinirish]

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">"Free market" <a href="https://t.co/K4UGAMJv43">pic.twitter.com/K4UGAMJv43</a></p>— shaquille o'atmeal (@crypt0e) <a href="https://twitter.com/crypt0e/status/1354465380127936513?ref_src=twsrc%5Etfw">January 27, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[Wild Bill]

https://media.tenor.com/images/db7fb29e56aa1d73cccdc41dbeb5a61f/tenor.gif

-look, I understand it's a dying business located in mall that's currently shut down due to a deadly pandemic but there's real opoprtunity here

 

[Old Man Mike]

... playing with fire, gentlemen. This is almost Ponzi like. People will lose sooner or later ... big.

 

[notredomer23]

$NAKD $NAKD $NAKD

 

[GATTACA!]

$NAKD $NAKD $NAKD

What's the theory?

GME
AMC
BB
NOK

 

[Cackalacky2.0]

Im gonna empty my 401k early and buy at $400. AM I doing this right?

 

[Ndaccountant]

Robinhood down too. It's funny how it's totally kosher for funds and banks to manipulate the market as they see fit, but when the proletariat gets a taste of power it literally crashes their house of cards.

I understand this sentiment but I'm not sure its accurate. Robinhood allows margin trades. Now, say investor X on the platform tries to by the stock on margin at 300. Price floor drops to 150 and margin is inadequate and its robimhood, so the investor is a 19 year old with 5k in the bank. Robinhood still needs to clear the trades and is the one on the hook. Now, you can say they should stop issuing margin. That's true. But there isn't a button or mouse click that can fix it instantly. I am sure they are also protecting larger clients as well, but I believe this is about looking out for themselves in the end.

 

[hungryhippo]

What's the theory?

GME
AMC
BB
NOK

This does appear to be the grouping. I picked up some BB today and put a Stop Loss order in case it melts down. Not terribly bothered by the after hours dip. But then again, I don’t know what I’m talking about.