Reddit slamming the big shorts

Updated on February 2, 2021 in General Stuff
19 on January 27, 2021

Have you seen this story?

Hilarious!

Bunch of hedge fund guys got caught with their dicks in the cookie jar, and the randos on Reddit are crushing them.

 
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0 on January 27, 2021

So there’s still hope for a killing with those old garage sale Blockbuster stock certificates?

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0 on January 27, 2021

Trying to remember exactly when I sold my Game stop stock.

Let’s just say it was too soon and leave it at that.

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0 on January 27, 2021

An epic fight.

Read a great quote in some article from one of the reddit guys: “We can be stupid longer than the shorts can be greedy”.

Ultimately, the shorts will win. This thing will collapse. In the mean time, this is hilarious. This is going to be talked about forever.

Look at this morning’s pre market.

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0 on January 27, 2021

If none of this makes sense, here’s a pretty good primer.

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0 on January 27, 2021

PS: In case I seem too frothy in all this, a bunch of the reddit guys are going to get smoked by this. Most of them, actually. This bubble will burst and anyone who bought above $20 or so is going to lose big.

And while reddit thinks they are crushing Wall Street, they will end up crushing themselves. Right now, this is happening in part because the reddit guys are staying disciplined. Holding fast in mutual solidarity.

That can’t hold. Eventually the smart ones will start taking profits. Eventually profit taking will get the momentum. Once that happens, GME will collapse.

Right now, large numbers of individual investors (I’ll talk about how RobinHood is screwing them another time) are pumping up the stock with new money. They are all going to lose. And lose soon.

This truly is a battle between the stupid and the greedy.

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0 on January 27, 2021

Took me all morning, but I put together some thoughts:

What Does Warren Buffett Think About GameStop?

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0 on January 28, 2021

I just heard something about official Wall Street moving to change the rules to shut down the amatuers. The one guy said the magic is not in the size of the Reddit crew’s investments but rather in the number of Reddit investors. I guess the Reddit folks have a stake of between $500 – $2500 individual amount invested.

Maybe?

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2 on January 28, 2021

Another huge open.

This is really something. One way to look at it is through the lens of “cancel culture”. This is a social media rage mob acting in the financial markets.

But this one is different because this one costs the mob money.

So one of two things is true: They either don’t know this is going to cost them money, or they don’t care.

The ignorance will take care of itself. They’ll get their education soon enough.

The caring is the more interesting thing. Have we manufactured a mob that is convinced the system is rigged against them, but has enough money to piss it away?

There is another possibility. Maybe none of this has anything to do with Reddit at all. It may be that the short squeeze is just one set of Wall Street guys against another, and the Reddit guys don’t matter.

on January 28, 2021

You probably have more than one dynamic going on at the same time here. For years, I have noticed with irritation these financial networks reporting something like this:

“Selloff (2 or 3%) in stocks today after Fed Chair signals possible .5% increase in federal funds rate!”  (Sound of pounding hooves as the sellers run for the tall grass.)   

Okay, fine.  But the next day, there would be “A big day on Wall Street (2 or 3% increase) as Commerce Department reports 6% durable goods orders.”  (Sound of pounding hooves as the same sellers rush back in … maybe)

And so it goes, every day, as news on inflation, mideast tensions, drought, tax policy, trade deficits, drug breakthroughs, etc. come and go, wax and wane.

I could never believe — and still don’t — that Warren Buffet was selling all of his American Express stock one day, on a “worrisome” report on interest rates, and then rushing right back in the next day on a buying frenzy on an encouraging report on durable goods orders.

What happens, of course, is that you have lots of different groups of investors with different goals, priorities and concerns.  A buy signal to me is a sell signal to you. And it may also be that these occasional selloffs just happen to coincide with a report on an interest rates, the deficit, war, or inflation and reporters have to find a connection, when there may not be one at all; it’s just coincidence sometimes.  

So, back to Reddit and Gamestop, I think you probably have a few rascally young millionaires here who hate hedge funds and are having fun scaring the short sellers to death, another group angrily punishing the shots sellers for trying to profit off the demise of a company, others who are buying on the way up with visions of selling when their shares go up “only” 10 percent, others who are just having a thrill, and then you have the shorts themselves who are having to buy to cover.  Lots of pushing and pulling as Antifa meets Cops meets National Guard meets Proudboys on a narrow street.  Cluster f—.

While billions may be lost collectively in this affair, the price of the stock is only $351 right now.  I know, I know “1500%!!!” and all that, but if you buy 50 shares right now, the world won’t come to and end when it crashes and you lose much or all of your $15,000.  Also, some of these people will sell  on the way down. So you might sell when it drops 50% and only lose $7,500.

Not to say there aren’t some idiots who are putting their life savings into Gamestop right now.  If they weren’t doing that, they’d be buying interests in Nigerian Tulip Farms.

I guarantee you that some people are buying 5 shares just to sell fast and try to make a few grand to buy dope or a bigger flatscreen.  They’ll be okay in the crash.  They probably already sold a few shares on the way up and have plenty to gamble with.  The hedge funds, not so much, but few of them have very much of their portfolios in Gamestop.  One fund reported “losses of up to 15% already!!” Who cares?

You might discount everything I say on the subject since I sold my Gamestop last year at around $19.00, LOL.  But again, it was just a missed chance to make a profit that I did nothing to earn.  I might as well regret all the mega jackpot lotteries I never played in as well.

P.S. Do not listen to me. 

 

 

 

 

 

 

 

 

on January 28, 2021
And it may also be that these occasional selloffs just happen to coincide with a report on an interest rates, the deficit, war, or inflation and reporters have to find a connection, when there may not be one at all; it’s just coincidence sometimes.From robjh22

Don’t get me started on “media expertise”.

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0 on January 28, 2021

Not so fast on that huge open.

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0 on January 28, 2021

Robinhood has restricted GME trades to “close position” only, and increased margin requirements.

https://blog.robinhood.com/news/2021/1/28/keeping-customers-informed-through-market-volatility

we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. We also raised margin requirements for certain securities.

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