stock market was up today...

[Grand Vol]

I can't wait for the Biden brain trust to address this. He better toe the line or his mob will get pointed back at him.

Talk about glorious press conferences.

Dementia Joe trying to explain how Excalibur6733, Toesucker69 and BigBoyRed are threats to the economic system is gonna be lit.

 

[newarkvol]

Okay, now that you are clear on the facts, understand this: The market ran out of liquidity today, or was threatening to get close enough that they killed it. What does that mean? It means they ran out of shares and/or capital. They wouldn't let you buy new shares because we were burning through all the shares on the market.

I saw an unsubstantiated post from a user (u/zshub) who said a market sell order executed at $2600 for him. Also, someone else for over $5,000 per share. Do you get the severity of the situation, if that's true? It means the buying was getting to the point where it was just about to put INFINITE pressure on the price of the shares. It means virtually any ask was getting bid.

How do you get infinite upwards pressure? A gamma squeeze triggering the mother of all short squeezes, just like we predicted. The call writers need shares to hedge. Retail is still buying more. The short sellers need over 100% of the float back. Add these together. There were more shares needed than existed on the open market. That's what a liquidity crisis is.

For your Reading Pleasure
More detail of the post ---I think?--you are referring to
(Posted 15 hrs. ago -Salient section(s) quoted verbatim)

1. ⁠Yesterday, new call option strike prices were added all the way up to $570. Do I have to go over gamma squeezes again? Really? We've been over this: when deep out-of-the-money call options start being gobbled up and the price starts moving towards being in-the-money, the call writers have to hedge their risk of having their sold calls exercised, typically by buying stock. This creates upwards pressure on the market. We've been seeing these movements all week.
2. ⁠Yesterday after market, you probably saw that coordinated effort to drive the price down and spook retail investors into a mass sell-off. It didn't work.
3. ⁠Last night, Robinhood sent out a message to users: you could no longer enter into new options. You could exercise them if you had the collateral (money in the account) to do so. Very interesting and the first sign of pants-*****ing fear.
4. ⁠Today, the market opened very strong. It opened so strong that we were looking at a self-perpetuating gamma squeeze all the way up way past $570.
5. ⁠At approximately 9:58 am, the stock had reached $468 in a parabolic move.
6. ⁠Two minutes earlier, at 9:56 am, Robinhood tweeted that they were not allowing users to buy GME stock, but they would allow selling.
7. ⁠The trend instantly halted and started a collapse downwards, before picking up a bit, especially after some retail was allowed back in.

Remember the movie Snowpiercer? Do you remember that scene where the lower class people realize the soldiers who oppress them have no bullets?
(
It kick starts a full blown rebellion. They have no bullets. It's the exact same in this market: No capital. No shares. Infinite losses inbound.

TL;DR: "...they NEED NEED NEED your shares. Do you get that? HOLD. Like the guy in the movie, scream, "They're out of bullets!" and create a stampede. That's how we win.

They needed your shares so badly that they literally risked PRISON TIME to get them. They tried robbing you, and I'm not even exaggerating. They were within 30 seconds of all being wiped out today.

--

 

[TheColdVolTruth]

Is it true that more shares were shorted than existed?

Shouldn’t that be impossible if not illegal?

I posted this in another thread as a crude example of how a ticker could see a short position over 100%.

This can be accomplished with a relatively small amount of shares in theory. If hedge fund A takes a 5% short position in a company, they sell those shares on the open market. Hedge fund B could then take an identical 5% short position with, in theory, the same shares that were shorted and sold by A. B then sells the same shares at market price. If this is done 25 times, you end up with a company having 125% of their shares being shorted when only 5% of their shares changed hands. This is an exaggerated example, but it shows how GME could see a short position of 138%.

 

[hog88]

Talk about glorious press conferences.

Dementia Joe trying to explain how Excalibur6733, Toesucker69 and BigBoyRed are threats to the economic system is gonna be lit.

He'll never address it, I doubt anyone in the press would ask him the question.

 

[Grand Vol]

He'll never address it, I doubt anyone in the press would ask him the question.

Dude, don't be a Debbie Downer and just enjoy the mental picture.

 

[hog88]

Dude, don't be a Debbie Downer and just enjoy the mental picture.

Something like this?

 

[red butler]

Maybe I'm being naive for once, but I think some people are about to get a big red pill over all of this when that happens.

One could hope, but I'm skeptical. If these autists crash the market there's going to be a massive media campaign against them about how grandma won't be able to retire because these degenerates used dirty tricks to manipulate the market. The headline will be something like Gaming Losers Exploit Stock Market Loopholes to Rob Boomers of Their Well Earned Retirement.

 

[NorthDallas40]

For your Reading Pleasure
More detail of the post ---I think?--you are referring to
(Posted 15 hrs. ago -Salient section(s) quoted verbatim)

1. ⁠Yesterday, new call option strike prices were added all the way up to $570. Do I have to go over gamma squeezes again? Really? We've been over this: when deep out-of-the-money call options start being gobbled up and the price starts moving towards being in-the-money, the call writers have to hedge their risk of having their sold calls exercised, typically by buying stock. This creates upwards pressure on the market. We've been seeing these movements all week.
2. ⁠Yesterday after market, you probably saw that coordinated effort to drive the price down and spook retail investors into a mass sell-off. It didn't work.
3. ⁠Last night, Robinhood sent out a message to users: you could no longer enter into new options. You could exercise them if you had the collateral (money in the account) to do so. Very interesting and the first sign of pants-*****ing fear.
4. ⁠Today, the market opened very strong. It opened so strong that we were looking at a self-perpetuating gamma squeeze all the way up way past $570.
5. ⁠At approximately 9:58 am, the stock had reached $468 in a parabolic move.
6. ⁠Two minutes earlier, at 9:56 am, Robinhood tweeted that they were not allowing users to buy GME stock, but they would allow selling.
7. ⁠The trend instantly halted and started a collapse downwards, before picking up a bit, especially after some retail was allowed back in.

Remember the movie Snowpiercer? Do you remember that scene where the lower class people realize the soldiers who oppress them have no bullets?
(
It kick starts a full blown rebellion. They have no bullets. It's the exact same in this market: No capital. No shares. Infinite losses inbound.

TL;DR: "...they NEED NEED NEED your shares. Do you get that? HOLD. Like the guy in the movie, scream, "They're out of bullets!" and create a stampede. That's how we win.

They needed your shares so badly that they literally risked PRISON TIME to get them. They tried robbing you, and I'm not even exaggerating. They were within 30 seconds of all being wiped out today.

--

That’s kinda what I thought. There is no liquidity there are no shares to trade. Right now anybody being an activist holding shares should be setting up incremental sell orders north of $500 and just sit on them right? As those shorts come due the funds will be forced to cover and right now are just trying to minimize how bad their loses will be. They are going to have huge losses that is a foregone conclusion. How many will be wiped out is the question.

And this whole issue is their own damn fault due to shorting more shares than available.

 

[NorthDallas40]

One could hope, but I'm skeptical. If these autists crash the market there's going to be a massive media campaign against them about how grandma won't be able to retire because these degenerates used dirty tricks to manipulate the market. The headline will be something like Gaming Losers Exploit Stock Market Loopholes to Rob Boomers of Their Well Earned Retirement.

Any pension fund putting money in a hedge fund needs to have their ERISA fiduciary bound fund managers publicly tried and hung. It is a complete vacating of fiduciary responsibility . But that won’t be a story you see the talking heads even mention.

 

[SpaceCoastVol]

Those Benjamins ain't gonna get in my pocket by themselves.

Yeah well we all know what kind of scumbag you are.

 

[SpaceCoastVol]

No way I’d put money on either side of it but I’ve got no problem being an antagonist on the situation.

I tried to buy a share of GME yesterday just for fun. My site wouldn't let me. Oh well. I'll laugh on the sidelines at this big game of chicken. I just hope the government stays the hell out of it and let's everybody go broke.

 

[SpaceCoastVol]

So the main dude pushing GME put in $50K in 2019 and now has $40M. JFC.

Not unless he sells it.

 

[mr.checkerboards]

Free Market, let it ride

 

[newarkvol]

That’s kinda what I thought. There is no liquidity there are no shares to trade. Right now anybody being an activist holding shares should be setting up incremental sell orders north of $500 and just sit in them right? As those shorts come due the funds will be forced to cover and right now are just trying to minimize how bad their losers will be. They are going to have huge losses that is a foregone conclusion. How many will be wiped out in s the question.

And this whole issue is their own damn fault due to shorting more shares than available.

This is my understanding---Also --It appears Many aren't in it for the money anymore and will just let it burn. They don't care if their accounts go to zero anymore. Many posts are speaking to the experience growing up during the 08 crisis, impoverished, stressed, struggling, and bitter.
Called it Redpilled or call it a developing class consciousness -- They want to set the billionaires on fire.

 

[midnight orange]

This is an unacceptable transfer of wealth from the politically connected to middle class people. It’s not supposed to work this way.

 

[Vol737]

Talk about glorious press conferences.

Dementia Joe trying to explain how Excalibur6733, Toesucker69 and BigBoyRed are threats to the economic system is gonna be lit.

Would be more epic than the campaign trail:

 

[red butler]

Any pension fund putting money in a hedge fund needs to have their ERISA fiduciary bound fund managers publicly tried and hung. It is a complete vacating of fiduciary responsibility . But that won’t be a story you see the talking heads even mention.

Agreed. But there's also systemic risk depending on how long they hold (if their theory is correct). We literally did nothing after 2008 (and held nobody accountable) so much of the market is still bets placed on margin (borrowed money). Melvin (the main hedge fund) will have to sell productive shares to cover their losses (downward pressure). In fact Melvin is probably already toast. So their losses will extend to Citadel who loaned Melvin money early. It looks like Citadel doubled down on the short position, so they may have to sell good stocks to cover losses (more downward pressure).

We learned in 2008 that downward market pressure on highly leveraged positions isn't a good thing.

 

[Vol737]

Not unless he sells it.

He’d be a fool not to sell now unless he truly doesn’t care and is doing it out of complete spite, which is fine. Typically, everybody has their price, though.

 

[NorthDallas40]

Agreed. But there's also systemic risk depending on how long they hold (if their theory is correct). We literally did nothing after 2008 (and held nobody accountable) so much of the market is still bets placed on margin (borrowed money). Melvin (the main hedge fund) will have to sell productive shares to cover their losses (downward pressure). In fact Melvin is probably already toast. So their losses will extend to Citadel who loaned Melvin money early. It looks like Citadel doubled down on the short position, so they may have to sell good stocks to cover losses (more downward pressure).

We learned in 2008 that downward market pressure on highly leveraged positions isn't a good thing.

Melvin is indeed already gone. Citadel is stepping up to the plate. Not sure yet who is in the batters circle.

But... the fault lies squarely on these idiots. They made a piss poor bet and their actions directly affected the liquidity situation. If anything comes of this there should never be more transactions in play than there are shares available. That seems fairly apparent doesn’t it ?

 

[Grand Vol]

Something like this?

View attachment 346668

You know what's even more glorious?

Maxine Waters is in charge of the House Finance Committee...

I really want to see the joint conference with her and Biden.

 

[UT_VOLS13]

You know what's even more glorious?

Maxine Waters is in charge of the House Finance Committee...

I really want to see the joint conference with her and Biden.

Dumb and Dumber

 

[red butler]

Evidently a similar event occurred a few years back with Volkswagen where it had to be mediated to a resolution. But that involved rational parties serving their own self interest. The redditors are irrational and want to send a message.

 

[mr.checkerboards]

 

[red butler]

Melvin is indeed already gone. Citadel is stepping up to the plate. Not sure yet who is in the batters circle.

But... the fault lies squarely on these idiots. They made a piss poor bet and their actions directly affected the liquidity situation. If anything comes of this there should never be more transactions in play than there are shares available. That seems fairly apparent doesn’t it ?

It should be apparent. But it never ceases to amaze me at how the MSM can successfully sway the masses. CNBC has had dozens of experts (appeal to authority) on the last couple of days villainizing the redditors with the host in agreement. Any guest that agrees with the redditors has to fight against the host.

 

[LouderVol]

https://www.reddit.com/r/wallstreetbets/comments/l7f95j/ladies_and_gentlemen_we_got_them/

Once they officially got attention it was over. Drawing attention to this is the worst thing the hedge funds could have done if they wanted to avoid this in the future.