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.
No idea if a crash is gonna happen.
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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
www.theverge.com
www.investopedia.com
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 occurs when sellers short assets without borrowing them or securing that ability first.
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Quirky story of how Karl Marx used part of a big bequest to successfully play the London Stock Exchange in 1864.
www.abc.net.au
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
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.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 profitWhat Is Naked Short Selling, How Does It Work, and Is It Legal?
Naked shorting occurs when sellers short assets without borrowing them or securing that ability first.
greggles
I'll be back!
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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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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.
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.
Dona Ferentes
A little bit OC⚡DC
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Hedge funds 101
www.abc.net.au
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
Dona Ferentes
A little bit OC⚡DC
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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....
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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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.
Note: not wanting to use RH, anything that is free is never free from risk.
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Can transfer out for a fee
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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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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.
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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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.
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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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.
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!
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!
Dona Ferentes
A little bit OC⚡DC
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A piece by Kerr Neilson on the recent conniptions
www.sharecafe.com.au
from Platinum Investment Management
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.
The New World of Risk – GameStop and Cryptos
from Platinum Investment Management
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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.
I haven't read the rest of this thread, so sorry if I am repeating someone.
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