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Market Shenanigans. GME, Reddit, and more

cactusflinthead

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wildcat09

wildcat09 29146

Posted
Posted
2 minutes ago, Anastasis said:

Funny how all the institutions are able to move so quickly to favor one side of the trade when some hedge fund managers are getting their asses pounded, but not one fucking finger lifted when those hedge fund managers are pulling shitty and likely illegal moves to put a business of out business and their thousands of employees out of jobs.  

The entire country of Argentina is wondering the same.

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Brisketexan

Brisketexan 104226

Posted
Posted
2 minutes ago, Anastasis said:

Funny how all the institutions are able to move so quickly to favor one side of the trade when some hedge fund managers are getting their asses pounded, but not one fucking finger lifted when those hedge fund managers are pulling shitty and likely illegal moves to put a business of out business and their thousands of employees out of jobs.  

CAPITALISM!  FREE MARKETS!  ANYTHING ELSE IS SOCIALISM!

The fact that 95% of our country doesn't even have a basic grasp of what different economic systems actually are (hint: we are a lot closer to "crony capitalism" than anything else) is a real fucking problem.

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TwiceHorn

TwiceHorn 31085

Posted
Posted
40 minutes ago, Pescado_Rojo said:

Not entirely true. Game Stop's earnings came in better than expected, largely on the strength of their on line business. They also picked up a new investor (the guy that started Chewy.com) with experience in on line business, so there's some effort to move their business to digital. Maybe it's tenuous, but probably no more so than the info the hedge funds used to start their whisper campaign to short the stock. 

Good add-on.  Yeah, the whole "business case" thing is a complete red herring by the critics.  The market makes huge moves without business cases every damned day.

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FondrenRoad

FondrenRoad 4378

Posted
Posted
1 hour ago, aggie08 said:

Can someone explain this to me like I went to Texas A&M? Crayon drawings will suffice. I've been checked out from even loosely following the market for months.

 

1 hour ago, High Plains Drifter said:

 

 

 

 

I'll try to explain it to you like a five year old (which is my level of understanding) explaining it to another five year old:

 

Gamestop is a failing company.

Wall street big wigs were betting on that happening, hoping to make money on GameStop's falling stock prices (called "shorting the stock"). This is common practice.

reddit yahoos start buying up GameStop stock, causing the stock price to rise extremely fast (over 100% in a day, over 1000% this month I believe).

Wall street big wigs cry foul, because the higher the stock goes, the more money they lose.

Some see this as the little guy finally putting it to the big guy. Others see this as market manipulation.

The irony as pointed out above is that now the Wall street big wigs want market regulation (because now they are losing money).

 

1 hour ago, Bateshorn said:

A bunch of hedge funds bet against game stop.  But the information that they did was actually public.  A bunch of basement dwelling gambling addicts/gamers/small time investors figured that out and sorta unified by buying GME stock to use the mechanics of the market against the hedge funds and bankrupt them.  It became a self reinforcing cycle and the price has gone through the roof.  It will eventually collapse, like all bubbles, but a bunch of rich CT assholes just lost an insane amount of money to an army of socially retarded neck beards. 
 

instead of explaining short selling, watch Trading Places and pay attention during the last half hour. 

 

1 hour ago, Brisketexan said:

1 -- Gamestop sells video games.

2 -- nerds love video games.

3 -- nerds hate rich bankers in their fancy car with their hot wives with fake boobs.

4 -- ???

5 -- profit.

 

These are all great but I'm not sure an aggie would understand.

The factory farmers think the price of sheep is gonna go down so they borrow a bunch of sheep from others and "sell" them back at the current price, and pay interest until they "buy" the sheep later at what they hope will be a lower price. Regular ags on Texags don't like factory farmers and they don't want the sheep who share their beds to lose value, so they buy more sheep and drive up the price to screw the factory farmers. Eventually, the factory farmers can't afford the margin interest and are forced to "buy" at a loss.

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Captainant

Captainant 27250

Posted
Posted
4 minutes ago, MoJames said:

One thing I haven't grasped absorbing all this information is how can you have after hours trading?

If you're an "institutional" investor (read: hedge fund) you have many more trading options and financial instruments accessible that we mere retail investors(read: normal people) have. Because of course, we mere morals couldn't possibly understand or safely use the same financial levers that the institutions use. In this case, there's other non-US markets and other methods to trade securities outside of normal hours.

It's fucking nuts right now how much free liquid capital is available to institutions have thanks to the trillions dumped in by jpow and the BRRRRT machine. We're gonna continue to see stupid shit like this because it's so easy to take risks. Especially when the hedges get a free bailout for their bad bets, while us retail peons have to eat shit

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DonkeyCigars

DonkeyCigars 144

Posted
Posted (edited)

Judging by Twitter today...$GMEgate is going to unite the right and left in ways that traditional politics never could, against the real enemy of oligarchs.

It's Occupy WallStreet except it's online and anon, so without having to see how lame and gross everyone else is in real life, it just might work.

Mama was right, but in one of those Gifts of the Magi, unintended way you see in Shakespeare, that Video Games cause violence and ultimately will be the downfall.

Edited by DonkeyCigars
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Francisco 2.0

Francisco 2.0 32290

Posted
Posted

This might be the best explainer of it all, for those of you reading this thread that don't quite get the gist of all this

 

https://www.vice.com/en/article/pkdvgy/send-this-to-anyone-who-wants-to-know-wtf-is-up-with-gamestop-stock

 

Quote

You have been sent here because your child, partner, or friend suggested that you invest your life savings into GameStop stock and you are curious what the fuck is going on. This post is long and thorough and mostly does not discuss memes and "the internet" until the end, but if you read it you will hopefully understand What Is Happening.

 

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Bateshorn

Bateshorn 9853

Posted
Posted
36 minutes ago, burntorangebongos said:

I hope most of them can hold. They are in the middle of the squeeze, not the end of it. 

Same.  It’s going to be hard when a lot of them are staring at 4-5 figure profits and RH pushing them to take the money and run 

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RDCanecutter

RDCanecutter 26198

Posted
Posted
4 minutes ago, Bateshorn said:

Same.  It’s going to be hard when a lot of them are staring at 4-5 figure profits and RH pushing them to take the money and run 

GME has got that "Sell Me" rhino horn spike going. I mean, a guy can hate the hedge funds and at the same time not expect GameStop to stay high much longer.

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Captainant

Captainant 27250

Posted
Posted
Just now, RDCanecutter said:

GME has got that "Sell Me" rhino horn spike going. I mean, a guy can hate the hedge funds and at the same time not expect GameStop to stay high much longer.

well it doesn't hurt when retail investor platforms are manipulating the market and preventing anyone from being able to buy shares of GME. So of course the price is going to go down

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henrygandorf

henrygandorf 29169

Posted
Posted

so while certain stocks promoted by the same folks (reddit, etc) like amc and bbby and bb are now "position close only" which is some first-class horseshit, gme is officially "no longer supported by the robinhood platform".

not sure what the recourse is, but there should be a revolt and i would think some well-founded suits filed.

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Mrs Whiggins

Mrs Whiggins 13049

Posted
Posted
5 minutes ago, burntorangebongos said:

AOC ain't having Ted use her feed to clean himself up. Nope.

Sweatergawd, my husband feels about her the way Brisket does Ms Sela. He doesn't 'follow' politics beyond the main news feeds, but I noticed he seems to notice that her twitter game is on point...

That, and he loathes Ted Cruz.

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MC Fresh Breath

MC Fresh Breath 4074

Posted
Posted (edited)
23 minutes ago, Macanudo said:

Exactly.   Every now and then I start to think I should try it and then I remember, it's a sucker's game.

One of my favorite lines from one of the Dirty Harry movies that I live my life by is "a man has got to know his limitations."

My 401k and a small rollover account are in index funds.  That's about where I stop.

Side note: between this thread and the one about depression over politics I'm going to run out of rep today.

Edited by MC Fresh Breath
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Brisketexan

Brisketexan 104226

Posted
Posted
1 minute ago, Mrs Whiggins said:

Sweatergawd, my husband feels about her the way Brisket does Ms Sela. He doesn't 'follow' politics beyond the main news feeds, but I noticed he seems to notice that her twitter game is on point...

That, and he loathes Ted Cruz.

I was JUST about to make that comment.  She's smart.  She's kinda scary.  She doesn't take any shit.  The "smart and confident and comfortable in her own skin" makes her sexy -- I definitely have a type (I married it).

So, yeah, I dig her.  She's awesome.

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horn4life

horn4life 3749

Posted
Posted

Quite frankly the market is what, about 80% owned my Millionaires and Billionaires?  SUPER interesting to see the retail end mob rule a particular stock.  But the Mob can't rule the entire market.  Trust me it's no fucking fun being caught in a short squeeze and the choice is lose your ass, or really, really fucking lose your ass.  You capitulate, like a retreat in a battle that is already clearly lost, to hope to regroup and fight another day.

The problem with letting the mob rule without trying to put in some sort of curbs is that while the mob will certainly maim and perhaps kill a hedge fund here and there, mainly it will wipe out little guys when the tide inevitably goes back out and the stock returns closer to value.  It's sort of like a ponzi scheme in that the last folks in get fucked.

We NEED to have the ability to have short positions, just as there are long positions, for a fully functioning market.  HOWEVER, options positions are DESIGNED for more supposedly sophisticated investors.  I looked at tossing some cash into GME at $60, but knew that was going to pull back.  Well a couple hundred later it is... my guess is it will again be a $30-40 stock in a month or two, IF NOT BY THE END OF NEXT WEEK.

 

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horn4life

horn4life 3749

Posted
Posted

Quite frankly the market is what, about 80% owned my Millionaires and Billionaires?  SUPER interesting to see the retail end mob rule a particular stock.  But the Mob can't rule the entire market.  Trust me it's no fucking fun being caught in a short squeeze and the choice is lose your ass, or really, really fucking lose your ass.  You capitulate, like a retreat in a battle that is already clearly lost, to hope to regroup and fight another day.

The problem with letting the mob rule without trying to put in some sort of curbs is that while the mob will certainly maim and perhaps kill a hedge fund here and there, mainly it will wipe out little guys when the tide inevitably goes back out and the stock returns closer to value.  It's sort of like a ponzi scheme in that the last folks in get fucked.

We NEED to have the ability to have short positions, just as there are long positions, for a fully functioning market.  HOWEVER, options positions are DESIGNED for more supposedly sophisticated investors.  I looked at tossing some cash into GME at $60, but knew that was going to pull back.  Well a couple hundred later it is... my guess is it will again be a $30-40 stock in a month or two, IF NOT BY THE END OF NEXT WEEK.

 

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horn4life

horn4life 3749

Posted
Posted

Quite frankly the market is what, about 80% owned my Millionaires and Billionaires?  SUPER interesting to see the retail end mob rule a particular stock.  But the Mob can't rule the entire market.  Trust me it's no fucking fun being caught in a short squeeze and the choice is lose your ass, or really, really fucking lose your ass.  You capitulate, like a retreat in a battle that is already clearly lost, to hope to regroup and fight another day.

The problem with letting the mob rule without trying to put in some sort of curbs is that while the mob will certainly maim and perhaps kill a hedge fund here and there, mainly it will wipe out little guys when the tide inevitably goes back out and the stock returns closer to value.  It's sort of like a ponzi scheme in that the last folks in get fucked.

We NEED to have the ability to have short positions, just as there are long positions, for a fully functioning market.  HOWEVER, options positions are DESIGNED for more supposedly sophisticated investors.  I looked at tossing some cash into GME at $60, but knew that was going to pull back.  Well a couple hundred later it is... my guess is it will again be a $30-40 stock in a month or two, IF NOT BY THE END OF NEXT WEEK.

 

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burntorangebongos

burntorangebongos 10681

Posted
Posted
4 minutes ago, MC Fresh Breath said:

One of my favorite lines from one of the Dirty Harry movies that I live my life by is "a man has got to know his limitations."

My 401k and a small rollover account are in index funds.  That's about where I stop.

Side note: between this thread and the one about depression over politics I'm going to run out of rep today.

Then holding that for a long time means you are playing the game right, especially if you are indexing the S&P 500. You are up big indexing that, even Brookshire whatever by Warren Buffett can't beat it. Go look...nothing beats it that I know about.

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henrygandorf

henrygandorf 29169

Posted
Posted
2 minutes ago, Foosters said:

 

well like i said, it is no longer supported by their platform.  i have no idea what happens when a platform drops outright accessibility to a stock, but auto-selling it seems like the only move (and i bet that their legal terms say so).  that said, this has a particular effect on gme, because the stocks themselves are so limited, because the reddit crew bought them all up to fuck over the shorters.  so robinhood aiding the supply, thus helping out the greedy shorters, is once again, some fucking bullshit.

i owned gme not long ago but got out with profit, before i knew what profit really looked like.  if you were holding this long, you likely weren't selling this week.  this fucking sucks.

to add, auto-selling someone's stock sucks shit, but i think limiting folks who own certain stocks (like me) to only sell is even worse.

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Brisketexan

Brisketexan 104226

Posted
Posted (edited)
2 minutes ago, TexArcher said:

This can't be real, and if it is, FINRA and the SEC have to obliterate them.

Yeah....I do NOT know a whole lot about the regulatory field there, but.....an outfit selling your stock, without your consent.....in order to assist the market position of a third party......

I am really curious about how RH legal counsel signed off on that.

 

EDIT -- I see the point about RH no longer trading GME, so auto-selling is the only option.....but just because they used a mechanism (no longer allowing trades) to get to that outcome shouldn't protect them.  

Edited by Brisketexan
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Bateshorn

Bateshorn 9853

Posted
Posted
7 minutes ago, Brisketexan said:

I was JUST about to make that comment.  She's smart.  She's kinda scary.  She doesn't take any shit.  The "smart and confident and comfortable in her own skin" makes her sexy -- I definitely have a type (I married it).

So, yeah, I dig her.  She's awesome.

All of those things and being easy in the eyes in a town full of 4s (of both genders) doesn’t hurt. 

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Fudge Nuggets

Fudge Nuggets 19111

Posted
Posted

Did RH ban all purchases of GME or just those on margin?  Because I can’t fault them for banning margin purchases one bit.  And the deal about RH selling account owner’s GME shares could be margin calls since the stock is down so much today. Margin clerks usually start making their calls around 1:00 to 1:30 Eastern.

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henrygandorf

henrygandorf 29169

Posted
Posted
6 minutes ago, Brisketexan said:

EDIT -- I see the point about RH no longer trading GME, so auto-selling is the only option.....but just because they used a mechanism (no longer allowing trades) to get to that outcome shouldn't protect them.  

i'm not wasting my day reading through their terms, but i bet this is what is supposed to happen.

but this is the worst case scenario of that rule kicking in.

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henrygandorf

henrygandorf 29169

Posted
Posted
2 minutes ago, Fudge Nuggets said:

Did RH ban all purchases of GME or just those on margin?  Because I can’t fault them for banning margin purchases one bit.  And the deal about RH selling account owner’s GME shares could be margin calls since the stock is down so much today. Margin clerks usually start making their calls around 1:00 to 1:30 Eastern.

you can't really "short" a stock on rh in the traditional sense.  most people who owned it, owned it, and were on the ride and making money buying and selling it.

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hayden_horn

hayden_horn 11358

Posted
Posted
2 minutes ago, Fudge Nuggets said:

I still can’t figure out why anyone would use RH in the first place.  Their system crashes every time there’s any market volatility and they change their own policies on a whim.

don't think that will be a problem going forward

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Fudge Nuggets

Fudge Nuggets 19111

Posted
Posted
1 minute ago, henrygandorf said:

you can't really "short" a stock on rh in the traditional sense.  most people who owned it, owned it, and were on the ride and making money buying and selling it.

So you’re saying they banned even cash purchases of GME?  If so, that is total bullshit and a good reason to never use a shit broker like RH in the first place.

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