stock market was up today...

#11,453
#11,453
red butler said:
I don't think Citadel is in on it because they're forcing Robinhood to cancel buy orders from their customers. The point about who actually owns most of the shares could be explained by large mutual funds that have millions of investors and don't really day trade. The large mutual funds aren't the problem with today's stock market anyway. It's not even wealthy people that invest in good companies. The problem is the high frequency traders, these hedge funds, and private equity firms that skim, manipulate, and destroy decent companies just to make a profit.

The fact that retail is being forced out of the buy side, while big finance tries to wrangle its way out of this is horrific. It seems like we're seeing massive scale financial manipulation minute by minute. The stock was dropping like a rock on almost no volume earlier (because the redditors aren't selling). It was possibly a couple of firms trading the same stocks lower hoping to trigger any automatic stop loss levels.
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So is it like Rogue A is selling to Rogue B at a loss? And then Rogue B sells back to Rogue A at a loss? And they just continue to swap paper between the two of them to help drive down the price?
 
#11,455
#11,455
n_huffhines said:
Tesla was not even close to as extreme. The details were there in OP. Was Peloton 2000% in a month?
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The timing and rate of change is the only difference in the two situations. The point is that you still have a situation where a stock is being pumped up artificially. If anything, the slower rate of change in Tesla and other stocks should have bought the regulators and the brokers more time to evaluate and address the situation before they went to ridiculous market caps. This is clearly a situation where the Big Guys are caught with their pants down and this isn't working in their favor.
 
#11,457
#11,457
Rasputin_Vol said:
The timing and rate of change is the only difference in the two situations. The point is that you still have a situation where a stock is being pumped up artificially. If anything, the slower rate of change in Tesla and other stocks should have bought the regulators and the brokers more time to evaluate and address the situation before they went to ridiculous market caps. This is clearly a situation where the Big Guys are caught with their pants down and this isn't working in their favor.
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My point is separate from that. All I was saying for the sake of the discussion is there are non-nefarious reasons for trying to regulate this instance. It doesn't solve the problem that only hedge funds can trade on this now, which is complete ********.
 
#11,458
#11,458
Rasputin_Vol said:
So is it like Rogue A is selling to Rogue B at a loss? And then Rogue B sells back to Rogue A at a loss? And they just continue to swap paper between the two of them to help drive down the price?
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I think that's right. From what I can tell, most of the apps put stop limits on your position. So if the stock hits a certain high or low, it automatically sells. So the thought is if the algorithms or whatever can get the price point, it will trigger a massive selloff. The redditors were tracking the stock going down, but some of the more analytical types were pointing out the super low volume. Most of the redditors had placed their low limits at over $1500 and any of the long-term investors that owned shares would have set there low limit at less than $10 because that's what the price would have been a month ago. It never got close to that because redditors from other parts of the world that still had access to the market bought the dip.
 
#11,459
#11,459
Rasputin_Vol said:
The timing and rate of change is the only difference in the two situations. The point is that you still have a situation where a stock is being pumped up artificially. If anything, the slower rate of change in Tesla and other stocks should have bought the regulators and the brokers more time to evaluate and address the situation before they went to ridiculous market caps. This is clearly a situation where the Big Guys are caught with their pants down and this isn't working in their favor.
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I believe they're more similar than different. Tesla skyrocketed because of a short squeeze; they're calling GameStop a gamma squeeze because there are so many short positions compared to available stock.
 
#11,463
#11,463
red butler said:
I believe they're more similar than different. Tesla skyrocketed because of a short squeeze; they're calling GameStop a gamma squeeze because there are so many short positions compared to available stock.
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Well, the same situation that I have been pounding the table on in the gold and silver markets are present here. ~150% more shorts than there are GME stock outstanding. SLV and GLD have far more paper contracts than they do metal on reserve. Naked shorting plain and simple, yet no one goes to jail.
 
#11,464
#11,464
Rasputin_Vol said:
Well, the same situation that I have been pounding the table on in the gold and silver markets are present here. ~150% more shorts than there are GME stock outstanding. SLV and GLD have far more paper contracts than they do metal on reserve. Naked shorting plain and simple, yet no one goes to jail.
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Somehow rehypothecation plays a role as well. I don't think you can get the same scenario in the precious metals market unless all the redditors demanded physical delivery. Just my opinion... would LOVE to see it though,.
 
#11,466
#11,466
red butler said:
Somehow rehypothecation plays a role as well. I don't think you can get the same scenario in the precious metals market unless all the redditors demanded physical delivery. Just my opinion... would LOVE to see it though,.
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Oh, I wasn't suggesting that the redditors should move into SLV, although, even in the SLV prospectus, it says they can just settle with cash.
 
#11,467
#11,467
The best part of almost every national story...the memes

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#11,475
#11,475
UT_VOLS13 said:
Yellen received $800G from hedge fund in Gamestop controversy; WH doesn't commit to recusal

GameStop Short Sell Firm Citadel Paid Biden's Treasury Secretary $MILLIONS.
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So wait the SEC or whoever, is going after Robinhood because their users didnt participate in the short sell? Trying to claim it was some type of illegal conspiracy/price fixing? Even though it sounds like they just did the exact same thing the hedge fund was doing. But in opposite.

Did I get that right?
 
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