stock market was up today...

#11,352
#11,352
RollinVol said:
can someone explain to me the whole game stop thing. Is it like some Trading Places thing
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A bunch of pissed off people picked out hedge funds shorting some stocks, specifically in this case GameStop, and are pumping the price and destroying the hedge funds to make some kind of point. GameStop is no where near worth the current market cap they show on the books.

It’s actually kinda hilarious on the karma. Hedge funds are betting on the stock to drop. The people are artificially holding it up. Margin calls are killing the funds. It’s a freaking great lesson in market unknowns and external forces.
 
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#11,355
#11,355
NorthDallas40 said:
A bunch of pissed off people picked out hedge funds shorting some stocks, specifically in this case GameStop, and are pumping the price and destroying the hedge funds to make some kind of point. GameStop is no where near worth the current market cap they show on the books.

It’s actually kinda hilarious on the karma. Hedge funds are betting on the stock to drop. The people are artificially holding it up. Margin calls are killing the funds. It’s a freaking great lesson in market unknowns and external forces.
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Thanks
 
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#11,358
#11,358
Thunder Good-Oil said:
The SEC is now looking into regulating stocks being manipulated by the individual investors after ignoring the shorts manipulating stocks with the reverse holding the bag.

Stop manipulating the stocks we’ve been manipulating!
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It’s going to be rather hilarious watching the sales job the SEC tries to give the public when they inevitably appease these huge funds 😂
 
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#11,359
#11,359
NorthDallas40 said:
It’s going to be rather hilarious watching the sales job the SEC tries to give the public when they inevitably appease these huge funds 😂
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The hedge fund managers are now playing the other side.

I’m downloading the Reddit app tonight. I think I’ll open up a Robinhood account if their boards and newsfeed aren’t open to everybody.
 
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#11,361
#11,361
NorthDallas40 said:
Be sure and post what you see! 😂
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So if I understand this correctly it's like a giant game of chicken. The Reddit individual investors are going to keep driving this up, but eventually people wil want to collect their money, and then this thing crashes back to earth. Am I understanding this correctly?
 
#11,362
#11,362
volfanhill said:
So if I understand this correctly it's like a giant game of chicken. The Reddit individual investors are going to keep driving this up, but eventually people wil want to collect their profits, and then this thing crashes back to earth. Am I understanding this correctly?
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I’ll let @Thunder Good-Oil give better details but the market isn’t immune to the laws of physics. What goes up must come down.
 
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#11,364
#11,364
NorthDallas40 said:
Be sure and post what you see! 😂
Click to expand...

I have no idea how Reddit works, but I now have an account and was able to join wallstreetbets (which is confusing because I thought it was now private).

I saw a post urging everybody to hang on until $1,000/share. I’m not biting. It will be fun to watch though. Does the Biden administration step in to assist the Elites?

I saw a CNBC mouth piece claiming that the Reddit mob is taking wealth from pension funds rather than hedge fund managers. Boo-effing-hoo! I don’t buy it.

I hope they do GoPro soon. Manipulators pumped and dumped that one.
 
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#11,365
#11,365
Thunder Good-Oil said:
I have no idea how Reddit works, but I now have an account and was able to join wallstreetbets (which is confusing because I thought it was now private).

I saw a post urging everybody to hang on until $1,000/share. I’m not biting. It will be fun to watch though. Does the Biden administration step in to assist the Elites?

I saw a CNBC mouth piece claiming that the Reddit mob is taking wealth from pension funds rather than hedge fund managers. Boo-effing-hoo! I don’t buy it.

I hope they do GoPro soon. Manipulators pumped and dumped that one.
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Damn. If pension funds lose money on speculative hedge funds instead of pursing blue chip investments they need to have their ERISA fiduciary responsibility thrown down in front of them.

Boo hoo indeed. Agreed. These funds played with the bull and got the horns.
 
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#11,368
#11,368
volfanhill said:
So if I understand this correctly it's like a giant game of chicken. The Reddit individual investors are going to keep driving this up, but eventually people wil want to collect their money, and then this thing crashes back to earth. Am I understanding this correctly?
Click to expand...

It’s (GME) a garbage company that doesn’t have the financials to support the crazy valuation. But shares of stock are finite and are being bid up by the simple law of supply and demand. Hedge funds push prices down with a coordinated effort to sell shares that they’ve borrowed. Now the Reddit users have targeted specific short positions and are countering by buying up shares in a coordinated attack thereby driving the share prices up to ridiculous levels. The GameStop price will certainly crash at some point. But the Reddit users are now the largest “hedge fund” in the world.

The one thing that the Reddit mob has going for it is that with thousands, or tens of thousands, of users participating each “investor” isn’t necessarily putting a lot of their capital at risk. Whereas the hedge funds have bet the farm with their short positions and are exposed to unlimited losses with their large positions. I’m tempted to kick in a grand just to support the community effort.
 
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#11,370
#11,370
Thunder Good-Oil said:
It’s (GME) a garbage company that doesn’t have the financials to support the crazy valuation. But shares of stock are finite and are being bid up by the simple law of supply and demand. Hedge funds push prices down with a coordinated effort to sell shares that they’ve borrowed. Now the Reddit users have targeted specific short positions and are countering by buying up shares in a coordinated attack thereby driving the share prices up to ridiculous levels. The GameStop price will certainly crash at some point. But the Reddit users are now the largest “hedge fund” in the world.

The one thing that the Reddit mob has going for it is that with thousands, or tens of thousands, of users participating each “investor” isn’t necessarily putting a lot of their capital at risk. Whereas the hedge funds have bet the farm with their short positions and are exposed to unlimited losses with their large positions. I’m tempted to kick in a grand just to support the community effort.
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Thank you for your time.
 
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#11,371
#11,371
Thunder Good-Oil said:
I have no idea how Reddit works, but I now have an account and was able to join wallstreetbets (which is confusing because I thought it was now private).

I saw a post urging everybody to hang on until $1,000/share. I’m not biting. It will be fun to watch though. Does the Biden administration step in to assist the Elites?

I saw a CNBC mouth piece claiming that the Reddit mob is taking wealth from pension funds rather than hedge fund managers. Boo-effing-hoo! I don’t buy it.

I hope they do GoPro soon. Manipulators pumped and dumped that one.
Click to expand...
Thanks...still confusing to me...so its more like the Danny Devito film Other People's Money than Trading Places?
 
#11,372
#11,372
It's not going to be good for the little guy if the hedgies decide to go to war with the little guys over this. Better to just let sleeping dogs lie and take the opportunities the market offers.
 
#11,374
#11,374
VolnJC said:
Thanks...still confusing to me...so its more like the Danny Devito film Other People's Money than Trading Places?
Click to expand...

I haven’t seen OPM. The Trading Places orange juice futures was obviously fiction, but it’s a similar concept. Pump and dump. Right now Reddit is pumping targeted stocks that are being shorted by the hedge funds... but the pumping is just the community creating a supply/demand imbalance rather than pushing BS news to drive prices up. It’s hilarious. No doubt the “smart money” is working on a way to take advantage of the movement.
 
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