Gamestop

[peter2]

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.

 

[Smurf1976]

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.

 

[peter2]

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

 

[joeno]

"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.

 

[DB008]

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....





​

 

[qldfrog]

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

 

[qldfrog]

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 ?

 

[mcgrath111]

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.

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 ?

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

 

[basilio]

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

 

[qldfrog]

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 ?

Apologies for later spelling

 

[Roller_1]

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

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

 

[againsthegrain]

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

 

[basilio]

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

 

[moXJO]

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.

 

[moXJO]

 

[moXJO]

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

 

[Smurf1976]

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?

 

[satanoperca]

1. This is fascinating stuff.
2. I love how it has played out.
3. 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.
4. 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.
5. 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.

 

[satanoperca]

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.

 

[Roller_1]

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 =]