|
Post by lcd on Jan 26, 2021 13:37:33 GMT
This part of the board doesn't get much attention, but I didn't want to derail a specific stock thread to focus on this topic. The market news over the last day is overwhelmingly about $GME and the impact WSB has had on that stock as well as several others. While I personally won't touch any of the stocks being promoted on WSB right now, I think this is a really exciting time. For years, hedge funds and big money have controlled the market, but here we have an example where retail investors have created wealth for themselves and a company at the expense of at least one hedge fund.
This author's analysis of the events got me thinking about the long term influence of WSB and similar groups like Robinhood.
Could we be seeing a significant disruptor in the stock market? I personally hope WSB and similar groups continue to succeed, but I think the exchanges will find a way of cracking down on their success. I wouldn't be surprised if they implemented some change that limited the ability for options to be oversold.
What do you think?
|
|
|
Post by selluwud on Jan 26, 2021 14:09:37 GMT
My son is investing in some of the WSB followed stocks (GME, BB, & SPACS too.) He has become savvy with future puts and calls and has been ringing the cash register as of late with GME plays.
|
|
|
Post by lcd on Jan 27, 2021 14:25:58 GMT
I hope your son is selling his GME pre-market this morning...it is currently at $337!! Five days ago, it was under $40.
|
|
|
Post by selluwud on Jan 27, 2021 15:26:52 GMT
|
|
|
Post by selluwud on Jan 27, 2021 15:31:33 GMT
The sad thing is I owned this stock 1500 share @ 3.75 in Aug of 2019 and held through some gains and losses only to dump at 3.95 in Jan.2020 to reinvest elsewhere. Wow, over 400,000 I lost out on? Seller's remorse you think?
|
|
|
Post by lcd on Jan 27, 2021 15:39:40 GMT
I feel you selluwud. I sold OTRK last year in the low $30s and it is now in the high $90s and started 2021 by selling CPSH around $3.30 two days before it peaked close to $12. I made nice profits on both, but holding a few days or weeks longer would have made a 6 figure difference for me.
I hope your son's strategy succeeds but at some point the market must correct for GME. I don't think they are a $20 billion dollar company.
|
|
|
Post by lcd on Jan 27, 2021 15:42:41 GMT
Getting back to my initial post, I do think this event will lead to some strategy changes by hedge funds to not expose themselves so much, but I am confused when I read that GME was shorted 140% of their total shares. How is this legal?
|
|
|
Post by selluwud on Jan 27, 2021 16:30:36 GMT
I feel you selluwud. I sold OTRK last year in the low $30s and it is now in the high $90s and started 2021 by selling CPSH around $3.30 two days before it peaked close to $12. I made nice profits on both, but holding a few days or weeks longer would have made a 6 figure difference for me. I hope your son's strategy succeeds but at some point the market must correct for GME. I don't think they are a $20 billion dollar company. My son said he's taking advantage of the "retail suckers" and has an exit plan. His latest foray is into AMC at a 5.00 cost, he's killing it today.
|
|
|
Post by JHam on Jan 27, 2021 17:46:54 GMT
Getting back to my initial post, I do think this event will lead to some strategy changes by hedge funds to not expose themselves so much, but I am confused when I read that GME was shorted 140% of their total shares. How is this legal? Seriously. How is this all legal? Surely authorities are going to start to clamp down on this. Of course if I would have bought and held GME last week I would think it was the best thing ever, lol. The crazy volatility forced TD Ameritrade to issue a warning banner right as you log into your account. And that was after the whole system crashed this morning due to crazy volume.
|
|
|
Post by JHam on Jan 27, 2021 17:47:48 GMT
I feel you selluwud. I sold OTRK last year in the low $30s and it is now in the high $90s and started 2021 by selling CPSH around $3.30 two days before it peaked close to $12. I made nice profits on both, but holding a few days or weeks longer would have made a 6 figure difference for me. I hope your son's strategy succeeds but at some point the market must correct for GME. I don't think they are a $20 billion dollar company. My son said he's taking advantage of the "retail suckers" and has an exit plan. His latest foray is into AMC at a 5.00 cost, he's killing it today. Wow. Awesome. I hope he gives dad a juicy bonus for showing him the ropes
|
|
|
Post by selluwud on Jan 27, 2021 18:06:55 GMT
My son said he's taking advantage of the "retail suckers" and has an exit plan. His latest foray is into AMC at a 5.00 cost, he's killing it today. Wow. Awesome. I hope he gives dad a juicy bonus for showing him the ropes I believe it's going to be vice versa. He's a gifted/smart kid, program management professional, who leads a team of programmers for defense contractor. He recently got into trading futures and has been doing his homework. Go son.
|
|
|
Post by JHam on Jan 28, 2021 4:11:49 GMT
Wow. Awesome. I hope he gives dad a juicy bonus for showing him the ropes I believe it's going to be vice versa. He's a gifted/smart kid, program management professional, who leads a team of programmers for defense contractor. He recently got into trading futures and has been doing his homework. Go son. That’s what I mean. He got those smarts from somewhere. Go dad!
|
|
|
Post by magnus123 on Jan 28, 2021 12:23:11 GMT
You can say what you want: everyone here likely wished that he bought GME in the last days... myself included. Congrats to your son for the profits I had some EXPR, KODK and others and being very happy with it. Beside that, it's so funny to see people at CNBC rotating, even Biden getting into the topic. Propably got some calls from his wallstreet. Establishment is trying so hard to prevent normal people from making a lot money and i love to see that this doesn't work at the moment. Calling it market manipulation is a joke when you take a look at the practices of big banks and hedge funds. Of course, GME will end badly at some point and a lot of WSB traders will likely lose the profits because of greediness and lack of experience.
|
|
|
Post by lcd on Jan 28, 2021 16:07:55 GMT
You can say what you want: everyone here likely wished that he bought GME in the last days... myself included. Congrats to your son for the profits I had some EXPR, KODK and others and being very happy with it. Beside that, it's so funny to see people at CNBC rotating, even Biden getting into the topic. Propably got some calls from his wallstreet. Establishment is trying so hard to prevent normal people from making a lot money and i love to see that this doesn't work at the moment. Calling it market manipulation is a joke when you take a look at the practices of big banks and hedge funds. Of course, GME will end badly at some point and a lot of WSB traders will likely lose the profits because of greediness and lack of experience. I couldn't agree more magnus. To me, what is happening to GME is not manipulation. These retail investors are driving up the price and shockingly, still holding. I think GME is wildly overpriced and over the next few weeks, some people will lose a lot of money, but I hope this type of retail investment becomes more common. That is what we do on this board at a micro-level. What is wrong with crowd sourcing investments in a public, transparent forum?
Unfortunately, some media is portraying this as manipulation and making the hedge funds sound like victims. How is it legal to short a company 140%? Melvin apparently got billion dollar loans this week from other hedge funds. That is coordinating investments done without any transparency.
|
|
|
Post by magnus123 on Jan 28, 2021 16:47:50 GMT
You can say what you want: everyone here likely wished that he bought GME in the last days... myself included. Congrats to your son for the profits I had some EXPR, KODK and others and being very happy with it. Beside that, it's so funny to see people at CNBC rotating, even Biden getting into the topic. Propably got some calls from his wallstreet. Establishment is trying so hard to prevent normal people from making a lot money and i love to see that this doesn't work at the moment. Calling it market manipulation is a joke when you take a look at the practices of big banks and hedge funds. Of course, GME will end badly at some point and a lot of WSB traders will likely lose the profits because of greediness and lack of experience. I couldn't agree more magnus. To me, what is happening to GME is not manipulation. These retail investors are driving up the price and shockingly, still holding. I think GME is wildly overpriced and over the next few weeks, some people will lose a lot of money, but I hope this type of retail investment becomes more common. That is what we do on this board at a micro-level. What is wrong with crowd sourcing investments in a public, transparent forum?
Unfortunately, some media is portraying this as manipulation and making the hedge funds sound like victims. How is it legal to short a company 140%? Melvin apparently got billion dollar loans this week from other hedge funds. That is coordinating investments done without any transparency.
How can it be manipulation? When a stock has been shorted with more shares than the float, the squeeze would have happened with or without WSB. Like Volkswagen years ago. Yes, i hope that this will not end now, even with GME collapsing. We need all those retail investors in the market. Together, the people have the power to stand against hedge funds and banks and all the corruption. But sadly, todays action is a clear example, in what the "free" markets have been turned into. Brokers are abusing their power to manipulate stock prices in order to help out their buddies. I hope that some smart people will develop new solutions to liberate the stock markets, making retail investors less dependent on these brokers. Regarding Melvin: The market manipulator has been punished. And that is called market manipulation by media. Unbelievable. Ironically, Citadel buys the order flow from Robinhood and helped Melvin out. You don't need to be a genius, why Robinhood closed trading in GME, AMC etc. They likely got a call from Citadel... It's part of this sick system that most people have to stay poor. If someone is getting rich, no problem. He spreads hope in other people hearts. But god beware if hundred of thousands of people are getting rich... Robinhood needs to be investigated. Even AOC is more into free markets than the establishment that is just feeding itself.
|
|
|
Post by JHam on Jan 29, 2021 3:26:45 GMT
You can say what you want: everyone here likely wished that he bought GME in the last days... myself included. Congrats to your son for the profits I had some EXPR, KODK and others and being very happy with it. Beside that, it's so funny to see people at CNBC rotating, even Biden getting into the topic. Propably got some calls from his wallstreet. Establishment is trying so hard to prevent normal people from making a lot money and i love to see that this doesn't work at the moment. Calling it market manipulation is a joke when you take a look at the practices of big banks and hedge funds. Of course, GME will end badly at some point and a lot of WSB traders will likely lose the profits because of greediness and lack of experience. I couldn't agree more magnus. To me, what is happening to GME is not manipulation. These retail investors are driving up the price and shockingly, still holding. I think GME is wildly overpriced and over the next few weeks, some people will lose a lot of money, but I hope this type of retail investment becomes more common. That is what we do on this board at a micro-level. What is wrong with crowd sourcing investments in a public, transparent forum?
Unfortunately, some media is portraying this as manipulation and making the hedge funds sound like victims. How is it legal to short a company 140%? Melvin apparently got billion dollar loans this week from other hedge funds. That is coordinating investments done without any transparency.
I have to change my previous sentiment where I questioned whether or not what was happening was actually legal. Now that I’ve read up more and understand what is going on, I love it. The way Robinhood and Ameritrade have been restricting buys but allowing sells is BS though. I hear the excuses that the platforms are giving for doing this. But it’s not fair to allow shorts to re-establish positions while restricting retail the ability to buy. It’s a great story though and I hope there is more of this in the future. Nothing like beating the hedgies at their own game.
|
|
|
Post by JHam on Jan 29, 2021 5:32:57 GMT
Dogecoin is now the latest Reddit/WallstreetBets/SatoshiStreetBets darling. it’s exploding right now and probably going to explode further. That said, I wouldn’t touch it with a 10 foot poll.
|
|
|
Post by JHam on Jan 29, 2021 5:36:25 GMT
Here’s a taste of what they are saying and how they are trying to play this. What could go wrong?? 😅 Man the ST board is in an absolute frenzy. Never seen anything like it.
|
|
|
Post by JHam on Jan 29, 2021 5:40:51 GMT
It’s like Carl Icahn vs Bill Ackman all over again. Only Icahn is the Reddit crowd.
|
|
|
Post by JHam on Jan 29, 2021 6:59:59 GMT
It looks like BB could be on the menu for tomorrow (Friday).
|
|