The Day the small investors took it to the Hedge Fund Managers
They plotted and planned in plain sight - the site was Reddit WallStreetBets. Now all of Wall Street is talking about it. While hedge funds tried to make a profit en route to making GameStop stock worthless, the WallStreetBets gang kept buying and eventually drove GameStop shares to nearly $500 a share before retreating. It didn't stop there as the new comers took on the hedge funds in other battles involving such hedge fund targets as American Airlines, which had just reported a smaller than expected loss. It's stock unexpectedly jumped by more than 40%.
Regulators are watching the moves. The Reddit WallStreetBets site has been turned on and off several times. Senator Elizabeth Warren is calling for stricter regulations, while admitting that the professional investors hurting this week have taken advantage of individuals for years.
And here I thought everything these amateurs did was perfectly legal.
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What did they do wrong?
It's like a Casino barring Black Jack players for card counting.
Like most people I was rooting for the little guys. I've never agreed with the "short sell" concept. Betting on a company to fail seems wrong to me. That said how many of those hedge funds that lost $5B had someone's retirement funds invested in them?
It finally happened - you and I are in total agreement.
Betting on a company to fail seems wrong to me.
Not only betting on, but actively manipulating those stocks to lose value. For example starting rumors of the company's demise or legal difficulties. With the pandemic it has been easy.
That said how many of those hedge funds that lost $5B had someone's retirement funds invested in them?
FEW
the more trumpsters these loses put on the street, the happier I am.
LOL! It's not the first time and I'm confident it won't be the last time.
No mercy for the middle class?
Is there ever mercy for the working middle class? I specified working because there are plenty in the middle class that are retired and are not affected by many policies that those working are affected by; and yes, I've had this conversation with my retired middle class parents.
Briefly, when one courageous man tried to bring back jobs to the US. Otherwise the working American middle class has been quietly devastated by globalization and drug abuse in their communities.
I specified working because there are plenty in the middle class that are retired and are not affected by many policies that those working are affected by
Can your retired middle class parents see their grand children? Can they venture into a crowded supermarket? Can they get their covid vaccine first priority, as we know would be the right thing to do?
The next time you see them talk with them like it might be the last time you have the chance.
One and the same!
... it began on 1/20/21.
With the termination of the Keystone XL Pipeline.
it isn't a pipe that belongs in that trench ...
Yes. My kids are at home with me.
All but one could and the one that can't is immune compromised... my stepdad has health issues; he's the one that recently had his left leg removed because of his circulation issues (not diabetes).
Haven't talked to them in about 2 weeks, they may have already gotten their vaccine.
I've been doing that for months, because of my stepdad's health issues that are unrelated to COVID.
I've seen that a lot.
OTOH, I've also seen a lot of people also trying to dishonestly manipulate stock prices in the opposite direction-- by starting rumours that a company was fantastic and was going to make tons of money (when the reality was that it was a terrible investment...even in some cases on the verge of bankruptcy).
And its gotten much worse since the popularity of the Internet.
And It works both ways...
(Smart investors ignore all the bullsh*T...comments from unknown individuals of dubious intent...)
I'm rooting for a lot of the little guys but I also understand the motive of the little guys I'm rooting for. Many are openly transparent about what they want but people intentionally miss what they are after.
It has its place. There are legitimate short sellers who exist as something of a warning bell to warn people "there are real severe problems here". In some cases, legitimate short sellers pick their targets very carefully and do so with a different intention of "Oh their balance sheet looks weak and they're losing money, let's make a fast buck".
Those are the ones that worry people... but mostly they worry fraudsters.
Or maybe they exist-- because they want to earn money in the market (just like other people)-- and they see a stock that they think is much too expensive and will fall so they short it. (Just like people who think a stock is much too cheap-- so they go long!)
It is legal .. with a theme of do not sell these overly shorted stocks they have purchased ..
Amateurs? Yeah, I do not think so ....
The people on reddit that are spreading the knowledge have been transparent. When the buys were blocked these investors found another brokerage to make the trades .. I would say those that are attempting to block the sales [under the guise of protecting these investors against themselves] are the ones playing an illegal game by attempting to manipulate the market..
I have a friend that is financial guru tracking every move... he is fascinated and wondering how many traditional investors are now making accounts on reddit .... : )
Could it be the result of people shuttered in due to covid studying the machinations of the market? Is this what idle time on the internet can lead to?
I have a friend that is financial guru tracking every move... he is fascinated and wondering how many traditional investors are now making accounts on reddit .... : )
I love it! I told one of my son-in-laws all about it last night.
Very well could be ... one thing I do know is these people are not idiots - there are some major 'financial'ish' brains behind this movement .. they def have done their research. Haha and here I thought I did my research : )
My hero Elon Musk tweeted one word and whoosh .. sent things into the stratosphere!
I'll give you that - they are intelligent. It's easy to follow a particular stock, it's much harder to follow money & movement.
My hero Elon Musk tweeted one word and whoosh .. sent things into the stratosphere!
Oh yes, it wasn't long ago that the financial world was talking about him.
He surpassed Bezos as the richest man on the planet : ) I had 20k to invest, so I did my research, opened an account .. bought Tesla at 33 dollars a share .. Amazon at 239 a share .. making money off both .. but Elon makes things fun, always something new coming from him .. Bezos has been playing catch up, even buying an electric vehicle company : )
Elon stuck with it.
A man of ideas.
Most definitely .. he is now sending Americans into space .. no longer are we reliant on Russia to get to the space station after NASA ended the shuttle program
That is called a visionary.
Imagine tourism in space!
"Tesla on Wednesday reported its first full-year profit, a feat 18 years in the making.
The electric carmaker, which was founded in 2003, said it earned $721 million in 2020, in contrast to a loss of $862 million in 2019, even though the pandemic was a drag on sales and production in the United States. The company made $270 million in the last three months of the year, up from $105 million in the same period of 2019."
https://www.nytimes.com/2021/01/27/business/tesla-earnings.html?
You outed me.
You and I have gone back and forth on what the "game" actually is. How long before people figure out the actual price of entry?
I give it a week before the people in deep go "Uh, they want WHAT?"
Perhaps most people already have...and those that figured out what the "game" really is (the folks in that Reddit group)-- they've made tons of money in a short time!
I've been doing a lot of work researching this. I could be wrong, but I'm thinking Silver is next-- last week I made several purchases. (Yes, I'm not shorting anything-- just going long-- buying Silver). If its up big this week. I'll have a nice profit.
(Possible top Tomorrow or Tues?)
And if I'm wrong? Well I don't think I will suffer actual big losses.
(Maybe also IRM-- but not too sure about that one)
What, exactly, do you mean by "the price of entry"?
(In my experience, the price of most stocks keeps changing.. .)
Unless, of course, you think that participating in free markets somehow means that you are "selling your soul to the Devil, LOL
)
A lot of stuff saying they're going to target it. Not buying it.
Silver/gold has been heavily manipulated in the past. And zero happens. Put the "word" out that it's the next target and folks at JPMorgan Chase are likely smiling, going for their huge profits and plunk another 3.6 billion into the community chest that will be a small portion of their earnings.
A lot of people are in the HODL category. Many are not what you would call your standard "greedy fundamental market driven investors". They have different goals. The trade volumes from today tell a very interesting story... if you're digging deep enough to look at it.
Well, I bought it!
(Bought Silver last week).
Sold yesterday for a profit...
(Because I made money from the trade...does that mean that I am "greedy"? If I changed my "evil ways" and dtarted deliberately making only trades where I continually lose money-- would that make me a "better person"?)
What do you mean by "greedy"? Investors that invest in the msarket hoping to make a profit-- is that greedy?
And the ones who you say "have different goals"? What is different than wanting to make a profit-- wanting to lose money in the market? Perhaps wanting to lose money? a loss...why?
(Maybe wanting to take a loss-- maybe for tax purposes??? Or maybe you are thinking of the people who keep losing money in the market because they have some deep psychological disorder...compulsuive gamblers? Or maybe a few are actually true masochists?))
The main entities attempting to block sales are the trading platforms themselves:
Retail brokerages and trading platforms are stepping in. A slew of retail firms this week slapped trading restrictions on GameStop, AMC Entertainment Holdings, and other companies targeted in the tussle.
These include Charles Schwab and TD Ameritrade, which have tightened margin requirements on some stocks, including GameStop; Interactive Brokers Group, which put option trading into liquidation only for stocks including GameStop, BlackBerry Limited, and retailer Express Ltd (meaning investors can unwind their positions but not cash in); and Robinhood, which has taken similar measures.