The Stock Market thread

[wustin]

They're short attacks. The price will rubber band back up when they go back to cover their shorts. The problem is that retail can't buy now when the price is low and the hedge funds probably have a strategy to rebuy shares without needing to pay out the ass.

[Flasch186]

Originally Posted by wustin

They're short attacks. The price will rubber band back up when they go back to cover their shorts. The problem is that retail can't buy now when the price is low and the hedge funds probably have a strategy to rebuy shares without needing to pay out the ass.

Exactly! This is such bullshit went he free-market capitalists get bailed out by the public when they suffer the other side of the coin of that take and now the same thing.

[AlexB]

I watched The Big Short, and kinda understood it at the time with the straight to camera explanations (still don’t see how it’s legal, but that’s another argument)

I haven’t seen mention as to whether this will hurt people’s pensions, which I’m guessing it could do if the theory expands and funds get seriously hurt?

[JPhillips]

Parler, but for stonks, is a business opportunity right now.

[sterlingice]

Can the feds or NYSE just stop trading on a stock for like a week or two weeks? Is that the next unprecedented crooked move here, right?

Because, right now, these traders are getting frozen out of their stock buying but they're itching to buy as soon as they can because this has become a religious war to a lot of these people. The price is likely going to go up again and the only hope is 1) you run out of retail investors who want to just stay on a stock for a short period of time to make a quick buck (I'm not sure there's an end to those) or 2) something unprecedented takes this large pool of people out of the market.

SI

[wustin]

I can't wait for tomorrow when all the call options get exercised.

[sterlingice]

Prediction: When the market turns south this year, people are going to blame reddit bros for it rather than overextended hedge funds, weak fundamentals, and the GOP in Congress who are the real reason.

SI

[Ghost Econ]

I have to ask, whats to stop Robinhood, et al, from not allowing people to sell tomorrow when the squeeze is supposed to hit? Basically, hedge funds are the only ones allowed to sell to each other at the inflated price to bail each other out?

[kingfc22]

Nothing

[Lathum]

Originally Posted by wustin

I can't wait for tomorrow when all the call options get exercised.

I am still learning about this, but it has been fascinating. Is that when the hedge funds have to pay for the stocks and they will lose billions? what will happen to the prices of the stocks tomorrow?

I bought a little AMC and am curious to see what happens.

[Lathum]

WHO WILL THINK OF THE WEALTHY PEOPLE!!!!

Listen to this incredible crybaby pic.twitter.com/KmJvZpBQ59

— Timothy Burke (@bubbaprog) January 28, 2021

[wustin]

Originally Posted by Lathum

I am still learning about this, but it has been fascinating. Is that when the hedge funds have to pay for the stocks and they will lose billions? what will happen to the prices of the stocks tomorrow?

I bought a little AMC and am curious to see what happens.

Options expire every Friday. People will get to sell contracts to allow purchases of GME shares at $1-115 per or exercise the call themselves. Typically most people sell the contract because you need a lot of capital to buy, but with GME floating around $200-500 and overshorted, it would be dumb not to exercise because it would inflate the stock price even higher.

Robinhood is going to autosell expiry contracts tomorrow in accounts that do not have immediate capital to exercise. It's kind of fucked up but we know what kind of company they are now after today.

As for AMC, they just injected 44 million more of their shares into the market to raise capital. If you also consider how they shifted and maneuvered around the pandemic to avoid bankruptcy, I think they are an interesting long term hold if you didn't buy in at $2-4 and got out at $20 earlier this week.

[JPhillips]

This will become the reason why we can't have more stimulus checks.

[sterlingice]

I'm thinking Robin Hood is done as an app, right? It now has 335K reviews and a 1.0 average. I'm assuming this where the richs guy picked one company to fall on the sword to save the rest of them?

SI

[jbergey22]

I think Robinhood took the biggest beating today.

This game seemed a bit silly and would have corrected itself shortly so if anything it was a great lesson for short traders. Robinhood should have stayed out of it.

[Coffee Warlord]

https://pbs.twimg.com/media/Es1-yyZX...g&name=900x900

Usually take these with the tiniest of tiny grains of salt, but I can believe this one.

[jbergey22]

Originally Posted by Coffee Warlord

https://pbs.twimg.com/media/Es1-yyZX...g&name=900x900

Usually take these with the tiniest of tiny grains of salt, but I can believe this one.

Yup

[sterlingice]

Originally Posted by Coffee Warlord

https://pbs.twimg.com/media/Es1-yyZX...g&name=900x900

Usually take these with the tiniest of tiny grains of salt, but I can believe this one.

On the one hand, I totally buy it.

On the other, I'm a low level IT flunkie and I'm not privy to what goes on in the c-suite except through rumor and innuendo that I'm never quite sure if it's true or not.

SI

[jbergey22]

Originally Posted by sterlingice

I'm thinking Robin Hood is done as an app, right? It now has 335K reviews and a 1.0 average. I'm assuming this where the richs guy picked one company to fall on the sword to save the rest of them?

SI

I read over 100k of them reviews came this morning.

In a world where options are everywhere I think their credibility took a huge hit and would need a lot to go right to recover from this. They have had some other issues lately as well that add fuel to this.

[rjolley]

This isn't my field at all, so excuse me for not understanding, but why is the White House calling bad in this situation?

[Flasch186]

...because free-market capitalism and price discovery are always left uninterrupted when the power brokers are winning and the minute they start losing they get bailed out by the middle and lower class (tax dollars) or in this case the Capitalists themselves exerted authoritarian powers to protect themselves at the cost of the plebes.

[Coffee Warlord]

Somewhere, someone is furiously writing the screenplay for The Big Short, Chapter 2 right now.

[rjolley]

Originally Posted by Flasch186

...because free-market capitalism and price discovery are always left uninterrupted when the power brokers are winning and the minute they start losing they get bailed out by the middle and lower class (tax dollars) or in this case the Capitalists themselves exerted authoritarian powers to protect themselves at the cost of the plebes.

Oh, so the usual what's good for me isn't good for them stuff. Got it. Thanks.

[Flasch186]

So now RH says they’ll allow some trading tomorrow

The lawsuits coming are going to be incredible


Sent from my iPhone using Tapatalk

[Coffee Warlord]

Financial sector aghast the poors are gaming system designed to be gamed by the rich - The Beaverton

[Ghost Econ]

Originally Posted by Flasch186

So now RH says they’ll allow some trading tomorrow

The lawsuits coming are going to be incredible


Sent from my iPhone using Tapatalk

The lawsuits against Robinhood and others is a drop in the bucket to the bloodbath they would have taken if they didn't shut it down ahead of time.

Robinhood, Melvin and a few other apps/firms will be the sacrificial Bear Sterns in this go around.

[Flasch186]

Originally Posted by Ghost Econ

The lawsuits against Robinhood and others is a drop in the bucket to the bloodbath they would have taken if they didn't shut it down ahead of time.

Robinhood, Melvin and a few other apps/firms will be the sacrificial Bear Sterns in this go around.

Have the wiggled free now that they've put their necks on the throats of the bankers and brokers? We know that if they want the spigot shut off that they have that type of leverage.

[sterlingice]

Originally Posted by Ghost Econ

The lawsuits against Robinhood and others is a drop in the bucket to the bloodbath they would have taken if they didn't shut it down ahead of time.

Robinhood, Melvin and a few other apps/firms will be the sacrificial Bear Sterns in this go around.

Yup.

Never mind the whole "letting people buy their feeds" bullcrap they engage in.

Watching the futures price is crazy. I think tomorrow's going to be some kind of historic day. I just have no idea what it's going to look like. And, unlike usual, I'm not sure the billionaires know, which is why this is interesting. There has to be some sort of power game going on between firms like Blackrock and Sequoia where there are probably some feverish negotiations around shorts and long positions that likely aren't anywhere close to legal ("hey, we'll cash in enough of our shares at just the right time for you to save some of your shorts... for a price").

I even suspect the big, generational type money and powerful families are going to get destroyed. Ones who thought they were always safe from the plebs. But, considering what happens to the rest of us every time there's a downturn, well, fuck 'em?

SI

[wustin]

Apparently one of the people high up in the Citadel food chain is the former Federal Reserve chair during the 2008 wallstreet bailout.

Citadel is the financial group that bailed out Melvin Capital, recently doubled down on their short position of GME, and controls Robinhood.

This is getting into conspiracy territory I guess. Not much I can do but hope things get better. I only have about 24 shares of GME at $1500.

[RainMaker]

Game is rigged. Reddit guys never stood a chance. Hedge funds lost their shirt but not as much as they should have had the market not been manipulated today. Just a disgusting day.

[RainMaker]

Meanwhile, perfect timing for this stock trade. What are the odds?

Nancy Pelosi Buys Tesla Calls, Stands To Benefit From New Biden EV Plan

[albionmoonlight]

DEM STRATEGY MEETING:

"Well, several GOP folks got caught making some pretty sketchy trades after those COVID briefings. I think that we might be able to really get into the public's mind that it is the GOP who use their positions in Congress to game the system. This can be a GOP problem, not an All Of Congress problem.

"Nancy? Is everything OK? You suddenly started looking pale . . ."

[sterlingice]

Originally Posted by RainMaker

Game is rigged. Reddit guys never stood a chance. Hedge funds lost their shirt but not as much as they should have had the market not been manipulated today. Just a disgusting day.

So you're saying that no matter how many people you get together from the dark purple are and a few from the medium purple line, they're never going to win against the light purple?

SI

[NobodyHere]

Strange bedfellows indeed:

Fully agree. �� https://t.co/rW38zfLYGh

— Ted Cruz (@tedcruz) January 28, 2021

[RainMaker]

Originally Posted by sterlingice

So you're saying that no matter how many people you get together from the dark purple are and a few from the medium purple line, they're never going to win against the light purple?

SI

Funny thing is they actually had them on the ropes but were bailed out.

[RainMaker]

Originally Posted by albionmoonlight

DEM STRATEGY MEETING:

"Well, several GOP folks got caught making some pretty sketchy trades after those COVID briefings. I think that we might be able to really get into the public's mind that it is the GOP who use their positions in Congress to game the system. This can be a GOP problem, not an All Of Congress problem.

"Nancy? Is everything OK? You suddenly started looking pale . . ."

Pelosi has been knee deep in it for a long time now. Democratic Party doesn't care. That's why they lose a lot.

https://www.reuters.com/article/us-u...81700720120208

[Atocep]

The same people telling the poor they need to invest more are upset the poor are using the tactics they've spent years refining against them.

[RainMaker]

Janet Yellen accepted $810,000 in speaking fees from Citadel, owner of Robinhood.

Reporter: Are there any plans to recuse herself from advising the President on GameStop and Robinhood situation?

Psaki: ‘No and she’s an expert and deserves that money.’

pic.twitter.com/fvn1Chu30P

— Jessica Grace �� (@IsicaLynn) January 28, 2021

[sterlingice]

Originally Posted by Atocep

The same people telling the poor they need to invest more are upset the poor are using the tactics they've spent years refining against them.

Rich People: wHy dOn'T tHe pOoR jUsT iNvEsT tHeIr mOnEy
Poor People: Ok.
Rich People: ...
Rich People: wait stop

— Justin McDaniel 🏳️‍🌈 (@JUSTINtime4aLAF) January 28, 2021

SI

[JPhillips]

Regardless of what you may think of Yellen, it's ridiculous to think $810,000 is somehow more corrupting than being among the global financial elite for the past three decades.

[larrymcg421]

WTF is this recuse herself nonsense? She's not a judge. The President is free to decide if her judgment is biased and make a different decision.

[GrantDawg]

I think what they want is an expert on finance that has never made money.

Sent from my SM-N960U using Tapatalk

[Atocep]

Originally Posted by GrantDawg

I think what they want is an expert on finance that has never made money.

Sent from my SM-N960U using Tapatalk

So r/Wallstreetbets?

[sterlingice]

The Senator from the great state of Nebraska would like to propose "u/DeepFuckingValue" for Secretary of Commerce

GME YOLO update — Jan 28 2021 : wallstreetbets

SI

[bob]

https://twitter.com/supramantrax/sta...692316676?s=10

[RainMaker]

Originally Posted by GrantDawg

I think what they want is an expert on finance that has never made money.

Isn't that Yellen? Don't think she ever worked in the private sector. Her wealth is entirely through bribes.

[RainMaker]

Originally Posted by JPhillips

Regardless of what you may think of Yellen, it's ridiculous to think $810,000 is somehow more corrupting than being among the global financial elite for the past three decades.

She has taken in over $7 million in the past couple years from Wall Street. That's literally how she got rich.

[RainMaker]

Originally Posted by Atocep

So r/Wallstreetbets?

They were on the verge of bankrupting a bunch of hedge funds and financial institutions before the bailout came. Removed almost all liquidity from the market (and likely would have if they had continued). All with a few moves and a forum to talk. Maybe they're not as dumb as you think.

[NobodyHere]

Originally Posted by RainMaker

She has taken in over $7 million in the past couple years from Wall Street. That's literally how she got rich.

She wasn't rich before 2018?

[JPhillips]

Originally Posted by RainMaker

She has taken in over $7 million in the past couple years from Wall Street. That's literally how she got rich.

Sure, but your theory is that she used to believe different things and then got paid. My theory is she's been a part of the financial elite for decades and would push the same policies whether she made 7 million or 7 thousand.

Is there any evidence she would have done something different before she got speaking fees?