# Gamestop



## moXJO (27 January 2021)

Anyone been watching the war between wallstreet and redditors?


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## peter2 (27 January 2021)

Yep and I've been watching the price action of Gamestop (GME) during the US session.
Monday, GME opened up 36% at $97. I watched it go to $160 before falling back down to close at $76. Thought the action was all over after that. Very surprised to see that yesterday it opened at $88 and closed at $148.

It's amazing, as in Aug GME was the butt of short sellers having traded down to 2.60. Until Dave Cohen joined to the board and stirred up all the geeks at Wallstreetbets (called Tendies). Many of these Tendies bought call options with all their money and many of them are sitting on HUGE open profits.

GME is being reported by more mainstream media now. It's a very interesting read.
GME trades as EB Games in Aust.


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## Roller_1 (27 January 2021)

GME is over $200 in after hours trade, at one stage it was up nearly 200% from the last open! It's crashed way back to 180% now lol.

Some of the Russell 3000 stocks are crazy right now, rough for shorts =|

What bubble?


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## moXJO (27 January 2021)

So is "meme trading" going to catch on?
 I've noticed more and more jumping on board. Its an interesting development in the trading world.


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## wabullfrog (28 January 2021)

Hit over $370 in premarke and over $300 in early trade.


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## peter2 (28 January 2021)

The original shorters say they've exited their short positions but GME is going back down to $20. We all know it but haven't the money to hold positions through this extraordinary volatility. Some rich fund is going to clean up. My US broker won't allow me to short it (too hard to borrow). Not even one share. AMC is another that's gone crazy high (>$20). AMC manage movie theatres. When was the last time we went to the theatre to see a movie? 

It's fun to watch the price action and see the market commentators gobsmacked.


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## qldfrog (28 January 2021)

Just social media in action
https://finance.yahoo.com/news/gamestop-memestocks-revenge-retail-trader-142719034.html
Last i looked $340 or 130% gain this session..


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## greggles (28 January 2021)

I haven't been following this story but I just caught up on it. If I understand the situation correctly, those at wallstreetbets on reddit are trolls trying to screw those publicly taking short positions on stocks by buying the stock being shorted. In this case, the target is Andrew Left at Citron Research and Gamestop, a struggling game retailer.

I am surprised that those at wallstreetbets are being so open about what they are doing given the scale of the market manipulation they are engineering.

But it sets an interesting precedent. This sort of thing could easily be done via a private messaging app such as Telegram and be much more discreet and harder to identify. If this sort of market manipulation becomes a thing we could see a lot more market volatility, which is great for traders but not so good for confidence in the market as a lot of people are going to lose their shirts as a result of these kind of shenanigans.

I will watch the fallout of this Gamestop saga with interest.


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## moXJO (28 January 2021)

Wsb is pushing this thing to $1000. It has literally created millionaires that were previously broke and unemployed. I think the "mooch" got it right when he said "This is the French revolution for finance".

Wall Street types are calling for fines and regulations. If wsb beat the shorts then the whole game changes and wall Street is on edge. Media has been demonising the movement. I actually think its fantastic.


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## moXJO (28 January 2021)

greggles said:


> I haven't been following this story but I just caught up on it. If I understand the situation correctly, those at wallstreetbets on reddit are trolls trying to screw those publicly taking short positions on stocks by buying the stock being shorted. In this case, the target is Andrew Left at Citron Research and Gamestop, a struggling game retailer.
> 
> I am surprised that those at wallstreetbets are being so open about what they are doing given the scale of the market manipulation they are engineering.
> 
> ...



I think its also millions of people catching up to the bs of "investing for piss returns and thinking you can retire" pushed by Kramer types. These are the ridiculous trades im constantly scanning the net for.

Its also the change of behaviour of how an investment instrument operates that I look for. Cryptocoins was the last major disruption.

 I think it will get regulated. But has tech advanced to the point of no return?


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## Dona Ferentes (28 January 2021)

moXJO said:


> "This is the French revolution for finance".



Then we are the _tricoteuses_


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## moXJO (28 January 2021)

Insane gains, from $10k (not mine).


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## moXJO (28 January 2021)

Dona Ferentes said:


> Then we are the _tricoteuses_



I always have skin in the game when it comes to ridiculous troll trades. I have a reputation to uphold.


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## greggles (28 January 2021)

moXJO said:


> Wsb is pushing this thing to $1000. It has literally created millionaires that were previously broke and unemployed.




The problem is, Gamestop is still a failing business and the share price will eventually go back down to where it started. Some may have made out like bandits, but when the share price collapse inevitably comes, a lot of people with long positions are going to lose their shirts.


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## qldfrog (28 January 2021)

Dona Ferentes said:


> Then we are the _tricoteuses_



Sadly, i think many will see their wallet cut drastically when, not if gravity laws returns, probably even helped by a finance revenge push.
When a trader in an edge fund gamble a million, it is not his money so who cares? Not him..., when students gamble $1k, it is their bank accounts.
Will end in bloodshed imho


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## moXJO (28 January 2021)

greggles said:


> The problem is, Gamestop is still a failing business and the share price will eventually go back down to where it started. Some may have made out like bandits, but when the share price collapse inevitably comes, a lot of people with long positions are going to lose their shirts.



Of course, its basically a pyramid scheme. At this point anyone getting in has really already missed the initial pump. If enough fanatics got in they could hold the stock.
But right now its just to shake the shorts which will have to cover their positions.
Even elon musk got in the action.

There was a meme floating about went something like " what was my $5k every really going to do". This is more than just a retarded trade. But there will be tears.

Just to add: people around the world are now buying in small amounts. Not sure where this will go. But people do want to stick it to wall Street so the moons the limit.


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## moXJO (28 January 2021)

qldfrog said:


> Sadly, i think many will see their wallet cut drastically when, not if gravity laws returns, probably even helped by a finance revenge push.
> When a trader in an edge fund gamble a million, it is not his money so who cares? Not him..., when students gamble $1k, it is their bank accounts.
> Will end in bloodshed imho



Anyone who goes against the movement is getting hacked and their families are apparently being threatened. Behind the scenes I'm sure they are lobbying the sec.


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## satanoperca (28 January 2021)

Bloomberg - Are you a robot?
		


Interesting mass social media strategy. Sounds like a casino.









						r/wallstreetbets
					

r/wallstreetbets: Like 4chan found a Bloomberg Terminal




					www.reddit.com


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## frugal.rock (28 January 2021)

Wow, GME, is this a bargain?
Was only 50% up when I noticed.... dunno where your getting your figures from Mo. lol


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## moXJO (28 January 2021)

Silver is *possibly* the next thing they are betting on. I hope they do. I still have about 30kg left over from the early 2000.


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## moXJO (28 January 2021)

frugal.rock said:


> Wow, GME, is this a bargain?
> Was only 50% up when I noticed.... dunno where your getting your figures from Mo. lol
> 
> View attachment 119168



Pump it F.Rock


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## finicky (28 January 2021)

How many of those sophisticated activist traders on Redditt ramping it for the cause of sticking it to the establishment are in good faith and not stashing away profits instead of 'holding the line' and going all in like they're encouraging others to do? Reminded me of a doco I saw about Tiananmen Square where a female organizer knew the army was coming in to smash heads but kept orchestrating from the sanctuary she was in. It was something like that, bit blurry about the details, but the cynicism and treating demonstrators as expendable pawns for a greater purpose (her ambition) was striking.


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## moXJO (28 January 2021)

finicky said:


> How many of those sophisticated activist traders on Redditt ramping it for the cause of sticking it to the establishment are in good faith and not stashing away profits instead of 'holding the line' and going all in like they're encouraging others to do? Reminded me of a doco I saw about Tiananmen Square where a female organizer knew the army was coming in to smash heads but kept orchestrating from the sanctuary she was in. It was something like that, bit blurry about the details, but the cynicism and treating demonstrators as expendable pawns for a greater purpose (her ambition) was striking.



I know Michael Burry (of big short fame) was on the trade and made 1500% or something.
There's a big mix of personalities here. I suppose its a question of: "is greed still relevant in 2021"?
Or perhaps "how long till the greed hits".

Either way its an opportunity for me to cash in on. These don't come around often.


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## Dona Ferentes (28 January 2021)

“What's sauce for the goose is sauce for the gander.”



> ‘Weaponised’ options trading turbocharges GameStop’s dizzying rally​GameStop is only the most visible example of today’s options-fuelled stock market mania. While the increasing use of derivatives has been a hallmark of previous retail trading frenzies, the current popularity is alarming even seasoned observers.


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## finicky (28 January 2021)

*GameStop's dizzying share price rise is game over for the short-sellers*

The retailer has gone from $19 to $330 thanks in part to amateurs taking on the hedge funds
Thu 28 Jan 2021

If you find trading bitcoin insufficiently hair-raising, try GameStop. It is the Texas-based video games retailer that will be hard to out-do as the stock market story of 2021. The share price was $19 at the start of this month but reached $330 in mid-afternoon on Wednesday in New York. There have been a few downwards lurches along the way, but the overall direction has been unsustainably upwards.
It must be unsustainable because nothing of note has happened to improve GameStop’s commercial prospects so radically. Exciting PlayStation and Xbox releases may lie around the corner, but the company is still a bricks-and-mortar retailer struggling in an online age. Instead, punting on GameStop has become a video game in itself.

One could call the game “burn the bears” – the bears being short-selling hedge funds who had bet last year that the share price had further to fall. They reckoned without a Reddit forum called r/WallStreetBets, where amateur traders gather, in this case to spot a daring counterattack – an uprising to propel the share price higher.

You have to admire the imagination. Short-sellers had bet so heavily on catastrophe for GameStop that they were vulnerable to any sudden reversal. In the old days, private punters would not have been able to assemble enough collective financial firepower to make a difference. Now, like the professionals, they have access to financial leverage in form of zero-commission derivatives – futures and options – to throw a few sticks of dynamite into the mix.
The explosion forced the hedge funds to cover their losses by buying stock, thereby adding to the upward momentum. The phenomenon is not new, but it’s hard to think of another example on this scale. Two hedge funds, at least, have been severely scalded, which, according to the subreddit, was half the point of the exercise. It was about getting one over on Wall Street.

In that sense, it has succeeded to a degree that seemed impossible. And, since short-sellers are rarely popular, the world will not weep for the hedge fund losers. Instead, one reaction was to wonder where Reddit’s enterprising crew will strike next. BlackBerry, another heavily shorted stock, has seen similar dynamics. Even the 14% rise on Wednesday in Pearson, a member of the FTSE 100 index, was attributed to short-sellers running for the hills.

Where does the tale go next? Well, despite calls for regulators to investigate possible market manipulation, that plot-line looks a non-starter. Amateurs communicating in chatrooms to talk up a stock does not amount to a conspiracy; the practice is as old as the internet.
Instead, after a few more rounds of excitement, expect the game to stop in the traditional way: the late-comers to the party, and those staying until the end, will learn the hard way that a paper profit is not the same as cash.

The smart money will be out by then, of course. But if GameStock’s common sense value is $2bn-ish – and not the $24.5bn implied by the share price on Wednesday – the crash will be brutal.



A GameStop retail store is open for business in New York City on Wednesday


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## frugal.rock (28 January 2021)

moXJO said:


> Pump it F.Rock



Not me.
ABC news just had a large chunk of their finance segment on the GameStop phenomenon.
They actually referenced GME in Australia as having the same name and also attracting attention !
Will be funny if it grows more legs based off same ticker association.
A proper laugh!
Reminds me of Z1P and ZIP.
ZIP turned into DOU (a neobank) and ended up being a ~10 bagger for holders.
 Monkey hears, monkey types.


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## againsthegrain (28 January 2021)

SINGAPORE, Jan 28 (Reuters) - Shares in small Australian nickel and cobalt explorer GME Resources (GME) jumped as much as 53% on Thursday, apparently driven by the similarity of the company's stock ticker to U.S. retail investor darling GameStop GME.N .

GME Resources stock rose as much as four Australian cents to A$0.115 ($0.0878) in early trade, before falling back to close just below nine cents for a 15% gain. It rose 14% on Wednesday.

"There are people buying the stock for shits and giggles, just because of the ticker symbol," said market analyst Kyle Rodda of brokerage IG Markets in Melbourne.


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## Roller_1 (28 January 2021)

againsthegrain said:


> SINGAPORE, Jan 28 (Reuters) - Shares in small Australian nickel and cobalt explorer GME Resources (GME) jumped as much as 53% on Thursday, apparently driven by the similarity of the company's stock ticker to U.S. retail investor darling GameStop GME.N .
> 
> GME Resources stock rose as much as four Australian cents to A$0.115 ($0.0878) in early trade, before falling back to close just below nine cents for a 15% gain. It rose 14% on Wednesday.
> 
> "There are people buying the stock for shits and giggles, just because of the ticker symbol," said market analyst Kyle Rodda of brokerage IG Markets in Melbourne.



i did that yesterday as a 'just in case' lol


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## basilio (28 January 2021)

This "slaughter of the shorters"  has captured  the imagination of the little guy investors.

Good explanation in The Guardian on what has happened.
In my mind it bears an uncanny resemblance to the revenge of the duped stock traders in "Trading Places".

The money shot of the money was watching the Dan Ackroyd and Eddie Murphy destroying the Duke brothers with a massive short play on the floor of the Commodities exchange.


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## moXJO (28 January 2021)

KOSS seems to be another pump


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## moXJO (28 January 2021)

Any dying industry with high shorts.


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## basilio (28 January 2021)

About Gamestop.

Liked these quotes..












						What is GameStop, where do the memes come in, and who is winning or losing?
					

The stock market has gone crazy for an ailing games retail company. Or rather it was always crazy, and GameStop has exposed it




					www.theguardian.com


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## Country Lad (28 January 2021)

It is interesting that everything I see in the media and from financial commentators seems to be not understanding it or having a bit of a joke about this.  Very little mention where to from here.

The company is a bricks and mortar games shop, comparatively small in the scheme of things.  It was accepted in the market that it was unlikely to survive let alone grow and now it sits with an unrealistic valuation.  

As @finicky said earlier, 
_The smart money will be out by then, of course. But if GameStock’s common sense value is $2bn-ish – and not the $24.5bn implied by the share price on Wednesday – the crash will be brutal._

Well, Just maybe, those shorter funds are licking their lips thinking this has to crash, so if we start selling short now, we can create panic and make a bigger killing and more than cover the losses we had on the way up.  

Who may just be caught holding the bag? Maybe those reddits who started it and enjoying it so much they don't sell quick enough.  Or simply all those FOMO traders not really understanding what has happened.


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## moXJO (28 January 2021)

Country Lad said:


> It is interesting that everything I see in the media and from financial commentators seems to be not understanding it or having a bit of a joke about this.  Very little mention where to from here.
> 
> The company is a bricks and mortar games shop, comparatively small in the scheme of things.  It was accepted in the market that it was unlikely to survive let alone grow and now it sits with an unrealistic valuation.
> 
> ...



How high though? 
It has to come down, but this crowd isn't the usual investment mob. If shorters pile in what's stopping more of the mob jumping on to try and squeeze them?
Who runs out of money first?


I think they had a couple hundred thousand join in on the action the last few days. But given the attention span of the internet users it will probably blow up next week. 

But there's a few stocks that are getting jumped on. Best to profit while it's in play.


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## wabullfrog (29 January 2021)




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## Paolo C (29 January 2021)

Does anyone think it’s still worth buying some GME at this stage?

And what about AMC and BlackBerry?


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## peter2 (29 January 2021)

We're not allowed to give specific financial advice at any time.

People are going to lose a LOT of money when the buying stops in these highly publicised US companies.


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## Paolo C (29 January 2021)

peter2 said:


> We're not allowed to give specific financial advice at any time.
> 
> People are going to lose a LOT of money when the buying stops in these highly publicised US companies.



Ok no worries. Wasn’t asking for any specific advice to rely on.

Yes I agree with you although hopefully not too many are putting their life savings in. I have what I like to call “flash” money set aside for such occasions so thinking I might throw some of that in. Or maybe I might even short GameStop myself (if I can figure out how). I’ve never short sold anything before.


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## qldfrog (29 January 2021)

Paolo C said:


> Does anyone think it’s still worth buying some GME at this stage?
> 
> And what about AMC and BlackBerry?



If you buy one of these stocks, and are lucky it goes up.we all agree you will have to sell one day, when? With the volatility they exhibit, there is a fair chance that the stop loss etc will be vaporised, then will you be awake to pull the plug, will your broker be able to handle the traffic,the requests.this will not be OTC but via the internet platform..so much risk


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## Paolo C (29 January 2021)

qldfrog said:


> If you buy one of these stocks, and are lucky it goes up.we all agree you will have to sell one day, when? With the volatility they exhibit, there is a fair chance that the stop loss etc will be vaporised, then will you be awake to pull the plug, will your broker be able to handle the traffic,the requests.this will not be OTC but via the internet platform..so much risk



I figure set an arbitrary mark to sell. Eg GME @USD1000. BB @USD125.

No stop loss.

Trades online through CommSec International.


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## peter2 (29 January 2021)

It's 15 min before the US open and things are looking very bullish. Sentiment has clearly changed and I think it's due to the falling pre-market prices of GME and it's cohorts.




It will be interesting to see if the WSB tendies have any more money to gamble.


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## Smurf1976 (29 January 2021)

Paolo C said:


> Wasn’t asking for any specific advice to rely on.



As background - there's an actual law that precludes giving "advice". That's a government law not something specific to this forum.

We can certainly say what we'd do personally however and in that context I'll say that these companies being rapidly pumped up to seriously high valuations is a game of musical chairs. When the music stops is anyone's guess but stop it almost certainly will and that that point someone's going to lose big.

I personally wouldn't buy into something that has already seen a massive rise in value for no reason relating to its actual business. If they'd developed a miracle cure for COVID-19 or they'd found a huge amount of copper or gold or something like that then that may well justify the price going up to such an extent given future revenue from sale of the cure or the minerals but not when there's zero change to the underlying business and that underlying business isn't great to start with.


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## peter2 (29 January 2021)

The first "warning shot across the bow" to protect the late retail buyers.  (from Marketwatch.com)


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## joeno (29 January 2021)

"Easier to find soldiers willing to die than soldiers willing to go through pain with patience." - Julius Caesar

If you're in now. You're the "greater fool". The company was due for either bankrupcy or a very very bad situation where it would keep bleeding and have to find funding every quarter.

That being said i do agree with the WSB guys (who i've been a member of for years now). I like the fundies crying crocodile tears. This will also no doubt cause some long term effects in other commodities and industries.

It was not a good idea to get in at $60/share. It certainly is a terrible idea to get in now. No matter if this goes to $1000 or $10000 or $1,000,000. The bag holders will see this back down to $20. GME can dilute their shares and raise money at these prices all they want. But at some point the WSB'ers won't have any cash left to pump this stock higher or donate to GME kickstarter.


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## DB008 (29 January 2021)

The Reddit r/wallstreetbets GME fiasco over the past week (which started a year ago) has been great.

Read on ABC here.
https://www.abc.net.au/news/2021-01-28/gamestop-reddit-users-on-wallstreetbets-explained/13097982

Will be interesting if ABC updates with what happened overnight (Probably not).


For those out of the loop - a user purchased about $100k worth of GME options last year which is now worth around $40 million. Users on reddit piled into the stock/options, some making a fortune and Wall Street Hedge Funds (Melvin Capital) are now out of pocket to the tune of billions trying to short the stock, only for it to go up. Big tech has stepped in and started to manipulate the market (like the election of 2020). No different to stock market platforms or wall street funds talking about which stock to purchase.

Robinhood trading platform has disabled the buy button.

When the big firms crush the little guys - thats ok
When the little guys crush the big guys - thats not ok
















Screenshot of some users trading accounts. Down $10 million for the day....





​


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## qldfrog (29 January 2021)

Paolo C said:


> I figure set an arbitrary mark to sell. Eg GME @USD1000. BB @USD125.
> 
> No stop loss.
> 
> Trades online through CommSec International.



And a trading halt will remove the pending orders.
You assume the rise is ongoing.what if you had bought yesterday and it falls overnight as it did.a perfect paper example to study.
I personally would not touch any stock which is so blatantly a push target,and i even put Tesla in the same bag  but some people like playing Roulette.up to you


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## qldfrog (29 January 2021)

peter2 said:


> The first "warning shot across the bow" to protect the late retail buyers.  (from Marketwatch.com)
> 
> View attachment 119208



To protect the *latter* retail buyer as this is also screwing up many recent buyers
If Trump could not defeat the swamp with his wealth, how do a bunch of nerds believe they can beat Wall Street? it is both sad, pathetic and laughable.
I would nearly bet that the hated target edge fund will end up in profit by the end of the year.
i like the youth enthusiasm, but sadly the story repeats itself again and again.
Off to listen to rage against the machine after a treat of Pink Floyd the Wall
this time it is different 😂


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## mcgrath111 (29 January 2021)

peter2 said:


> The first "warning shot across the bow" to protect the late retail buyers.  (from Marketwatch.com)
> 
> View attachment 119208



'Protect' retail buyers, how very considerate of RH - they have also closed positions on margin (Even it they were up xxxx%) - due to the risk to their account. Appears to be some serious collusion between Citadel and RH.



qldfrog said:


> To protect the *latter* retail buyer as this is also screwing up many recent buyers
> If Trump could not defeat the swamp with his wealth, how do a bunch of nerds believe they can beat Wall Street? it is both sad, pathetic and laughable.
> I would nearly bet that the hated target edge fund will end up in profit by the end of the year.
> i like the youth enthusiasm, but sadly the story repeats itself again and again.
> ...



Agreed, they don't play fair  - the shorts will win (Although who doesn't hate hedge funds?)


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## basilio (29 January 2021)

Robin Hood App has (been?) stopped from dealing in  Gamestop shares as well as a number of others being targeted by professional short sellers. Shares are tanking . Well worth reading the article.
A quick reminder of the House Rules

Rules of the Casino. (Unofficial but well understood)

1) The House* always *wins
2) If the House is losing, the game is stopped and all wins by punters are treated as fraudulent.
GameStop shares plunge after ban by Robinhood app​Meteoric rise fizzles out after small investors are barred from trading in groups that had soared in value









						GameStop shares plunge after ban by Robinhood app
					

Meteoric rise fizzles out after small investors are barred from trading in groups that had soared in value




					www.theguardian.com


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## qldfrog (29 January 2021)

qldfrog said:


> To protect the *latter* retail buyer as this is also screwing up many recent buyers
> If Trump could not defeat the swamp with his wealth, how do a bunch of nerds believe they can beat Wall Street? it is both sad, pathetic and laughable.
> I would nearly bet that the hated target edge fund will end up in profit by the end of the year.
> i like the youth enthusiasm, but sadly the story repeats itself again and again.
> ...



Apologies for later spelling


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## Roller_1 (29 January 2021)

Roller_1 said:


> i did that yesterday as a 'just in case' lol




GME madness continues to overflow to GME.au up 52% a few mins ago.


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## againsthegrain (29 January 2021)

Roller_1 said:


> GME madness continues to overflow to GME.au up 52% a few mins ago.



Trading halt already,  everything is super seized in usa in aus it usually fizzles out,  but interesting watch


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## basilio (29 January 2021)

Bit more history on WallStreetBets.  This is the 4.5m group of Reditt investors who came up with some creative ways to "beat the bank"
Can you recall when the bankrupt Hertz company last year  found its shares rapidly rising ?

The sting of course is that the final massive play with Gamestop has been blown up.

Good read.








						GameStop fun turns serious for Reddit's WallStreetBets
					

Analysis: financial risk is often an in-joke for the anarchic group of online traders – but no one is laughing now




					www.theguardian.com


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## moXJO (29 January 2021)

A few of the brokers are stopping trading on specific stocks. Winklevoss twins allowing trading on their platform along with a few others. Robinhood was a big blow as its commission free.


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## moXJO (29 January 2021)




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## moXJO (29 January 2021)

Robinhood hit with class action lawsuit after it restricts GameStop stock​


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## Smurf1976 (29 January 2021)

moXJO said:


> A few of the brokers are stopping trading on specific stocks. Winklevoss twins allowing trading on their platform along with a few others. Robinhood was a big blow as its commission free.



This is the most important aspect of it all in my view.

Gamestop is just some random games retailer in the US that most would never have heard of until the past few days but the implications of the actions of brokers are far broader. 

If they're willing to stop buy orders in order to "protect" investors from making a poor decision, one wonders if they might also stop sell orders to "protect" investors from getting out?


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## satanoperca (29 January 2021)

This is fascinating stuff.
I love how it has played out.
A very large group of social media followers have banded together to pool a very large amount of money and buy GME (long), while a couple of very large hedge funds have gone short, driving the price about well, well above any intrinsic value of the company, causing a short squeeze. Brilliant.
If you are a small retail investor and you did not have the experience or knowledge that stocks that are stable (ie companies that have a future business in their given market sector) just don't explode in price over days, then you learnt a valuable lesson in trading as you were not trading but gambling.
Hedge funds, oh well you have just learnt that you don't own the universe, maybe those employed by these funds could do something productive with their lives like being a teacher, nurse, social worker and just lead happy and fore filling lives without the need to drive a Porsche and the 10 bedroom house at the cost of other productive members of society.



> Robinhood isn’t the only firm to restrict trading on GameStop. Interactive Brokers, Webull, and TD Ameritrade have imposed similar restrictions




Back to point one, fascinating stuff, it is showing what the share markets have become, no longer are they a way to raise funds to do productive endeavours that benefit society as a whole and return a reasonable yield to those that have worked for the money they invested, but rather gambling dens.


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## satanoperca (29 January 2021)

So let's look a little further into Robinhood.
*Robinhood Markets, Inc.* is an American financial services company headquartered in Menlo Park, California.[3][4] Robinhood is a FINRA regulated broker-dealer, registered with the U.S. Securities and Exchange Commission, and is a member of the Securities Investor Protection Corporation.[5][3] The company's revenue comes from three main sources: interest earned on customers' cash balances, selling order information to high-frequency traders (a practice for which SEC opened a probe into the company in September 2020[6]) and margin lending.[7][8] As at 2020, Robinhood had 13 million users.[9][10]

So the founders are not Robinhood's but rather, me, me, me and I need more money for me under the guise I am doing this for the simple/average Joe.


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## Roller_1 (29 January 2021)

againsthegrain said:


> Trading halt already,  everything is super seized in usa in aus it usually fizzles out,  but interesting watch




Stopped out on a big reversal, it was fun while it lasted =]


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## moXJO (29 January 2021)

Everyone reading should note that this is all basically a ponzi scheme. Its gambling on the "greater fool" theory. Trading it can wipe out whatever money you put in


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## Garpal Gumnut (29 January 2021)

I must admit I quite enjoyed this tricimation of Melvin. 

I would not have had the gut, wit nor agility to get in a few days ago on GME NYSE. 

Congratulations to any ASF members who caught the wave. 

gg


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## basilio (29 January 2021)

moXJO said:


> Everyone reading should note that this is all basically a ponzi scheme. Its gambling on the "greater fool" theory. Trading it can wipe out whatever money you put in



Absolutely.   And The Pope is Catholic, Bears  and woods and so on.

I suggest that the big money in the stock market is in fact creating,grooming, promoting, the next plausible Ponzi scheme. Whether it's  a Graphite boom, Lithium boom, Rare earths, Nickel, IT , Dot Com or  the creative  short sellers everyone is looking for a quick buck. And frankly few people have scruples about being involved as long as they  think they will get in and out with  dollar.  Any analysis of the scores of small cap shares makes this clear.

Game Stop began as a short sell scheme constructed by the Hedge funds. It got turned against the funds when millions of small investors decided to actually buy the stock plus options and create a short squeeze on the funds. 

Clearly the SP has no relation to the underlying value of the stock. In that sense plausible denial has been shredded. The reality is far more acute. Those people who sold millions of shares they borrowed  to force the SP down were forced into a position having to pay ruinous amounts to redeem their position. 

So the Bank, because it was on the losing side of the bet, decided to close the game.  The process failed because it was too successful.


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## jbocker (29 January 2021)

You reckon this was big bang stock rise. Weeeelllll you just wait and watch my pick in the February Competition.


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## basilio (29 January 2021)

Just for fun.  A realistic summary of Gamestop.

Stock market panic as the wrong kind of people make money from it​ 


*The stock market has flown into a panic after some less experienced people managed to make it work for them.*

A Reddit group of relatively inexperienced traders bought huge amounts of shares in a failing company, GameStop, in order to get one over on a multi-billion dollar hedge fund who were betting on the company to fail.

The move took the company share prices from $20 to over $300, and has nearly bankrupted said hedge fund after they lost billions with their gamble.

“This is technically legal and, more straightforwardly, just incredibly funny,” confirmed journalist, Hayley Rice.
“Betting on companies failing and people’s livelihoods disappearing is the mark of a total bastard, and today some those bastards have been thoroughly shafted.”

However, not everybody was happy.

“AAARRGGGGHHHH!” suggested market shorter and bastard, Simon Williams.
“How dare people make money from the stock market in a similar way to me, while doing me no good whatsoever!”

“This is just wrong, and it’s not MY kind of wrong, so it’s even MORE wrong!”

“These people need to be arrested. Not me though, leave me alone.”








						Stock market panic as the wrong kind of people make money from it
					

The stock market has flown into a panic after some less experienced people managed to make it work for them.




					newsthump.com


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## moXJO (29 January 2021)

Apparently there are 38% more shares shorted on gme then there are actual physical stocks. Be interesting to see if they can still pull it off. May just take down wallstreet though


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## satanoperca (29 January 2021)

moXJO said:


> Apparently there are 38% more shares shorted on gme then there are actual physical stocks. Be interesting to see if they can still pull it off. May just take down wallstreet though




You have to laugh, after being in lockdown due to a virus (victorian), that the tables on those who thought they can game the system without working for it, could get turned so fast, and the system of trading and derivatives to prosper off someone else hard work and determination  (build/create something that people require or desire) could get exposed to the world so fast.


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## basilio (29 January 2021)

moXJO said:


> Apparently there are 38% more shares shorted on gme then there are actual physical stocks. Be interesting to see if they can still pull it off. May just take down wallstreet though




It is intriguing.  At some stage short sellers have to deliver the shares they have borrowed or what ?
What are the consequences of a hedge fund being unable to deliver the shares ? 
In the early 80's the Hunt brothers embarked on a massive silver shorting spree by attempting to corner the entire silver market. Their activities pushed the price of silver through the roof. The consequences were traumatic. This could unwind in a similar way.









						Silver Thursday: How Two Wealthy Traders Cornered the Market
					

Find out how the largest speculative attempt to corner the market went awry.




					www.investopedia.com


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## satanoperca (29 January 2021)

moXJO said:


> Apparently there are 38% more shares shorted on gme then there are actual physical stocks. Be interesting to see if they can still pull it off. May just take down wallstreet though



Reviewed this statement, it is interesting and more than likely possible as shorting is based on a contractual agreement that can be exploited.

It is not like buying potatoes, I buy 5 potatoes here is my money, where are they?

Or is it not that different, I buy the five potatoes and give them to jim who has paid x for them, as I know with X$ I can buy 6 potatoes in the future and return them to you. I love myself as I just made a trade where I get a potatoe for no cost, but when I use my X$ to buy my 6 potatoes (one for me) I find out that I can only buy 4 with X$.

Crap, I am short 1 potato, so what do I do, tell your to f-----k off and now you have 0 potatoes when you should have $X, and I have some potatoes.

Funning how people believe in numbers that are meant to be assets.


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## moXJO (30 January 2021)

Go next level asia.


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## moXJO (30 January 2021)

Just on the quiet, the whole market looks like its going to crash this year


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## Dona Ferentes (30 January 2021)

_and I do like hubris_

‘Boomers no longer control the market,’ says 16yo Reddit trader​


> A Melbourne high school student and active member of the notorious WallStreetBets social media forum has lashed Robinhood’s decision to restrict trading activity by its customers, but experts say Australia’s market integrity rules would prevent it ever coming to that.
> 
> Dan Tadmore, 16, joined the Reddit forum WallStreetBets in April last year,



etc etc


> While indulging his newfound passion for investing his pocket money in the sharemarket, and enjoying a distraction from his hectic Year 10 study and sporting schedule at an elite private school,


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## Spets (30 January 2021)

moXJO said:


> Just on the quiet, the whole market looks like its going to crash this year



Pssst, what do you know?


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## moXJO (30 January 2021)

Spets said:


> Pssst, what do you know?



Crashes


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## Spets (30 January 2021)

moXJO said:


> Crashes



Sounds like some opportunities coming up


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## basilio (30 January 2021)

This article throws into focus the  new competition  between the "Big Swinging xicks" represented by the big traders and hedge funds and the "Giant swinging xick" which represent the combined forces of the  millions of small traders who have  squeezed the Hedge funds on Gamestop.

Has something to say to the thousands of fresh day traders who have jumped into the stock market to  stick it to the man and make a killing.









						The real lesson of the GameStop story is the power of the swarm | Brett Scott
					

Rather than retreating from the company’s over-valued shares, traders have embraced them with nihilistic exuberance, says former broker Brett Scott




					www.theguardian.com


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## DB008 (30 January 2021)

.​


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## moXJO (31 January 2021)

What happens when foreign enemies start to jump to try and crash the US I wonder?
Realistically wallstreet and government might just use that as an excuse to regulate.


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## joeno (31 January 2021)

moXJO said:


> What happens when foreign enemies start to jump to try and crash the US I wonder?
> Realistically wallstreet and government might just use that as an excuse to regulate.




What happens when irrational racism is used as basis for farfetched conspiracy theories. Said by an Australian pretending like he's on the other side of the fence defending the US of A from "foreign enemies". Better not look in the mirror 😂


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## moXJO (31 January 2021)

joeno said:


> What happens when irrational racism is used as basis for farfetched conspiracy theories. Said by an Australian pretending like he's on the other side of the fence defending the US of A from "foreign enemies". Better not look in the mirror 😂



Kiwi actually.  And I've never been shy saying US needs to undergo massive change.
Save pointless digs for general chat. Happy to drag people through the mud over there. Keep it out of the other forums.


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## Nameless_ (31 January 2021)

Not an expert... but do you guys think $GME is causing the overall market crash?
Hedge funds selling other assets to cover.

I'm thinking of liquidating some % stocks awaiting to catch a crash that may happen.


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## Warr87 (31 January 2021)

I think it would be unfair to link a particular stock to an overall market crash. if other things start appearing elsewhere in the market it could be due to over leveraged positions and the need to re-adjust based on whatever risk metrics they have. if they do start selling and cause panic selling its not because of GME, its because they over leverage and think they wouldn't lose. may seem like a pedantic difference to make, but honestly I think its important.

No idea if a crash is gonna happen.


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## basilio (31 January 2021)

This comment  from has been raised previously (Moxjo and Co) but worth pointing out again.

_I’m frankly disappointed in the reporting the Verge is doing on this. If you’re going to come out with a big headline like "Redditors game the stock market" and also suggest that what they’re doing "might be illegal", you should absolutely mention that the reason WallStreetBets honed in on Gamestop is because their stock had been shorted a whopping 140%-  i.e. institutional investors had supposedly "borrowed" 40% more shares than the company had ever issued – something which is DEFINITELY illegal (aka. "naked shorting"). Melvin and others broke the law, the SEC turns a blind eye because they’re all in the same golf club; but then WallStreetBets came along and outsmarted them. I’m hardly sympathetic to the plight of corrupt billionaires…_

     Posted              on Jan 27, 2021 | 10:14 PM 








						How r/WallStreetBets gamed the stock of GameStop
					

When trolling also means making a profit




					www.theverge.com
				











						What Is Naked Short Selling, How Does It Work, and Is It Legal?
					

Naked shorting refers to the practice of selling shorts associated with shares that investors do not already possess.




					www.investopedia.com


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## basilio (31 January 2021)

Quirky story of how Karl Marx used part of  a big  bequest to successfully play the London Stock Exchange in 1864.









						Even Karl Marx used his stimulus payment to bet against professional traders
					

When Karl Marx received a large bequest from a friend who had died, he used some of the money to gamble on the stock exchange.




					www.abc.net.au


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## Triple B (31 January 2021)

basilio said:


> This comment  from has been raised previously (Moxjo and Co) but worth pointing out again.
> 
> _I’m frankly disappointed in the reporting the Verge is doing on this. If you’re going to come out with a big headline like "Redditors game the stock market" and also suggest that what they’re doing "might be illegal", you should absolutely mention that the reason WallStreetBets honed in on Gamestop is because their stock had been shorted a whopping 140%-  i.e. institutional investors had supposedly "borrowed" 40% more shares than the company had ever issued – something which is DEFINITELY illegal (aka. "naked shorting"). Melvin and others broke the law, the SEC turns a blind eye because they’re all in the same golf club; but then WallStreetBets came along and outsmarted them. I’m hardly sympathetic to the plight of corrupt billionaires…_
> 
> ...



The stocks are lent/Borrowed, then after they are sold short , they are lent out again. Thus creating 140% shorts. I dont believe they need to be in possession of the stock once they have sold them. Only need to be in possession at time of sale.  They can buy back any of the market stocks to cover the short.


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## greggles (31 January 2021)

SLV (iShares Silver Trust) may very well be Wall Street Bets next target. Was GME just a one-off, or is there more to come?


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## Triple B (1 February 2021)

greggles said:


> SLV (iShares Silver Trust) may very well be Wall Street Bets next target. Was GME just a one-off, or is there more to come?



I like Silver. Might get me some.


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## frugal.rock (1 February 2021)

Just completed application on Selfwealth to add US trading to my account.
Very simple process, took less than 2 minutes (will read the T&C garb before any trades placed...)
$9.50 USD trades and 0.6% FX commission is my main understanding of costs.

If there's other costs, they have hidden them in the T&C's... there may  be a catch out or two...

This WSB gig might grow some long legs...

I can see GME in Australia having another run this week, especially as it closed back to whence it came. If it starts running, I might have another crack.... with some bigger risk.
Took 12.4% net realised profit off it thus far... (only $260 net)
I can see it running up against the tide after possibly gapping up on open, later today ...

Some cheeky sod had the brains to stick it in the monthly comp... if it hits the leaderboard early, a frenzy may occur, but how long till the fizzle out...?
It's a bizarro world.


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## Dona Ferentes (1 February 2021)

Hedge funds 101









						What are hedge funds, and how did they (accidentally) cause GameStop's massive surge?
					

What's driving GameStop's astronomical surge is an unusual battle between Reddit nerds and Wall Street's billion-dollar hedge funds. But what is a "hedge fund", you may ask? We explain it all (very simply) here.




					www.abc.net.au


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## Dona Ferentes (1 February 2021)

and..... from _The Pain Report_

We just have to begin our story with someone who goes by the user name of Deep F...ing Value.

We’ll just call him DFV!!

This is his portfolio.
(_failed cut n paste)_

You will see he bought 50,000 shares at $14.8947 and 500 call options at 20 cents, that’s twenty cents.

You will also see that his portfolio is now worth $46,034,545.47.

How do we know this?

Because he just posted the screenshot of his portfolio on https://www.reddit.com/r/wallstreetbets/

Furthermore, the WSJ has published a great story about the man who is DFV and they have verified his brokerage account, its holdings and the valuation.

https://www.wsj.com/articles/keith-gill-drove-the-gamestop-reddit-mania-he-talked-to-the-journal-11611931696

This story from The New York Times provides some great context to the extraordinary events of the week.

https://www.nytimes.com/2021/01/27/business/gamestop-wall-street-bets.html

I don’t need to tell you that I have been mesmerised by this remarkable saga....


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## satanoperca (1 February 2021)

Does anyone know if you purchase through RH, do you own the shares and can they transferred to another broker? As something sounds fishy with RH.
Note: not wanting to use RH, anything that is free is never free from risk.


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## wabullfrog (1 February 2021)

satanoperca said:


> Does anyone know if you purchase through RH, do you own the shares and can they transferred to another broker? As something sounds fishy with RH.
> Note: not wanting to use RH, anything that is free is never free from risk.




Can transfer out for a fee









						Transfer your assets out
					

Transfer your assets out




					robinhood.com


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## satanoperca (1 February 2021)

wabullfrog said:


> Can transfer out for a fee
> 
> 
> 
> ...



That was they say, but has anyone tried in the last week, rumours are they are blocking transfers, smells fishy to me.


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## peter2 (1 February 2021)

Many articles about RH on Zerohedge.  None of them good. 
RH has been caught between their retail clients and the clearing house (DTCC). . RH like other brokers allow T+2 days for clients to fully fund their purchases but the clearing house wants the money overnight. RH has had to lean on their bankers to lend the money to satisfy DTCC regulations. 

Naturally RH doesn't want their clients to buy any more $GME and placed severe restrictions on 50 commonly traded companies. This restriction of trade goes against a free market philosophy. Retail traders revolting against this restriction and RH itself. RH under severe pressure as retail clients have started to leave and take their shares with them. 

SEC monitoring situation like a deer/rabbit monitors a spotlight.


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## moXJO (2 February 2021)

Fubo being tossed around as a very shorted stock


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## peter2 (2 February 2021)

Looks like my small XRT short is looking better as GME looks like opening much lower (finally).  Still 90min to open though. GME has been resilient. 




Wanted to add to the XRT short last night but broker (TS) wouldn't allow it. They've finally made the connection darn it. 
Next XRT rebalance is scheduled for March so the trade must be closed before then. I was thinking that when GME trades below $100 (XRT ~ $75) it's effect on XRT will be reduced to an insignificant amount.


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## Smurf1976 (3 February 2021)

Nameless_ said:


> Not an expert... but do you guys think $GME is causing the overall market crash?



Not really causing but my personal view, having lived through the dot com bubble and burst 1999 - 2000, is that things like this are the kind of things seen with a market due for a decent fall in the medium term.

It's an association more than a direct cause. Stock prices in companies with mediocre (or worse) actual business going to the moon is a warning sign that money's being thrown around like there's no tomorrow. That tends to happen in the leadup to market tops.

That doesn't mean there's about to be a crash but this sort of behaviour is a warning sign for the overall market in my view. 

I'm still heavily invested in stocks however but I'm watching carefully.


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## joeno (3 February 2021)

This GME fiasco is an amazing litmus test to test most novice and advanced investors / traders. Knowing everything that's happened, including the infinite squeeze that promised unlimited upward potential, i dare say (at this moment in time) the ones who thought GME would break the fundamentals of investing... face a severe shellacking

It incorporates concepts like greater fool theory in speculating asset bubbles to the *kiss finger* tee. Technical analysis. Fundamental analysis of stocks & reversion to fair value. What to do when there's irrationality and a breakout in the market. Setting strategy / exit plan. Game theory - the prisoner's dilemma. Emotional investing. Gamma squeeze. Theta decay and explosion for option plays. Market manipulation strategies. Etc. it's got a all!


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## Dona Ferentes (3 February 2021)

A piece by Kerr Neilson on the recent conniptions









						The New World of Risk - GameStop and Cryptos – ShareCafe
					

The slant of the early reporting by the popular media on the crowd-driven squeeze on heavily shorted shares like GameStop is worthy of commentary. Platinum's Kerr Neilson obliges with his thoughts on the matter.




					www.sharecafe.com.au
				




The New World of Risk – GameStop and Cryptos​ 
                   from Platinum Investment Management


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## investtrader (3 February 2021)

GME was just a very sophisticated pump n dump. All those dumb Reddit morons have done their shirt ....

I haven't read the rest of this thread, so sorry if I am repeating someone.


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## Dona Ferentes (4 February 2021)

investtrader said:


> GME was just a very sophisticated pump n dump. All those dumb Reddit morons have done their shirt ....



Quite likely.. found this:

https://www.firstlinks.com.au/welcome-to-firstlinks-edition-393


The *Peridot Capital Management* newsletter quotes another example of a stock targetted by the Reddit army, *AMC*, a struggling movie theatre chain, and how the rise in share price benefitted a large holder:


> _"Silver Lake Partners, a large, well known private equity firm held $600 million of AMC convertible debt due in 2024, which was in a dicey spot with the convert price well into the double digits. Well, they acted fast last week, converting the debt into 44 million shares of equity as the stock surged into the high teens, and selling every single share the same day the stock peaked. That’s right, they go from being one of the largest AMC worrying creditors to being completely out at nice profit in a matter of days. Note to Redditers: that’s how you ring the register!"_


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## investtrader (5 February 2021)

GME lost another 42% last night  ..


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## moXJO (5 February 2021)

Im in on Doge coin and "bow wow" so far. Taking some early profits and let the rest run. There's a billion, or billions  of coins so I don't think the upside will be that huge. Won't reach the moon, but might hit the top of the barstool.


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## greggles (13 February 2021)

ASX chief warns on GameStop-style trading frenzy

Things have quietened down on the WallStreetBets front, but something tells me we haven't heard the last from those guys yet. I bet there are plenty of disillusioned millennials who now have brokerage accounts and are waiting patiently for the next big thing.


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## moXJO (14 February 2021)

greggles said:


> ASX chief warns on GameStop-style trading frenzy
> 
> Things have quietened down on the WallStreetBets front, but something tells me we haven't heard the last from those guys yet. I bet there are plenty of disillusioned millennials who now have brokerage accounts and are waiting patiently for the next big thing.



It's too unfocused (well more than usual anyway) to get hard hits. They ran into pot stocks and pumped them, which then crashed. Just the numbers of people watching now allows it to move things hard.


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## moXJO (20 February 2021)

Sentiment trading tool for wsb:

https://swaggystocks.com/dashboard/home


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## moXJO (26 February 2021)

It's back baby. 

After watching the WB guys half ass this rally, they finally managed to kick it over. Not sure it has the power, or numbers of the first


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## moXJO (12 March 2021)

Gme is the gift that keeps giving. Go meme stock.


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## basilio (12 March 2021)

moXJO said:


> Gme is the gift that keeps giving. Go meme stock.




Go boy!! Just don't be the last one in the pool or you'll go down the way  of these little fishies  









						Drone Captures Eden’s Whale Trap Feeding in the Gulf of Thailand
					

By treading water and keeping the corners of their mouth below the surface, a flow is created pulling the fish into the whale’s mouth



					twistedsifter.com


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## moXJO (12 March 2021)

basilio said:


> Go boy!! Just don't be the last one in the pool or you'll go down the way  of these little fishies
> 
> 
> 
> ...



2021 has been interesting (investing/gambling wise). NFT's seem even more ridiculous. Time to make some shitty jpegs and pretend to be an artist.


----------



## noirua (5 April 2021)

GameStop, AMC Entertainment and the democratisation of investing: meet the Reddit users turned traders
					

The short squeeze against big hedge funds has pushed many people to start trading in stocks and shares for the first time



					www.proactiveinvestors.co.uk


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## greggles (2 September 2021)

Meme Maniacs Have Only Just Begun Their War on Wall Street





__





						Bloomberg - Are you a robot?
					





					www.bloomberg.com


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## MovingAverage (2 September 2021)

greggles said:


> Meme Maniacs Have Only Just Begun Their War on Wall Street
> 
> 
> 
> ...



The inevitable consequence of the democratization of the stock market   The minute something is opened to the masses it all goes to ****


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## Smurf1976 (2 September 2021)

greggles said:


> Meme Maniacs Have Only Just Begun Their War on Wall Street
> 
> 
> 
> ...



This headline sounds like someone ringing the bell to mark the actual or at least imminent top of the market.

Time will tell but it's got warning signs all over it.


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## divs4ever (3 September 2021)

one might think  an aggregate 140% short position on a stock  , was a recipe for some sort of disaster  , regardless of mass participation

 who DIDN'T seem to participate much early on was the SEC .. ( too many buddies lined up for a piece of the kill perhaps ?? )

 a mathematically inclined person might have been  starting to scrutinize the trading as soon as net short positions approached 95% ( because surely some of those positions  were naked shorts )


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## Dona Ferentes (19 October 2021)

_Explainer - Why did the SEC release a report on GameStop?_









						Why did the SEC release a report on GameStop? By Reuters
					

Why did the SEC release a report on GameStop?




					au.investing.com


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## orr (7 March 2022)

The overall value of this piece also appllies to a number of other theads across Business Economics & etc.etc


----------

