The GameStop Saga

Any of the stock market followers here been watching this story?

1 Like

That whole situation is epic! A lot of small investors are giving the wood to several hedge funds. It’s a true popcorn moment to watch if you’re not invested in it.

2 Likes

I seen 2 of my stocks skyrocket with no news or reasons for doing so. Apparently GameStop & AMC aren’t the only ones being targeted to get a short squeeze. It seems like a monetary form of musical chairs to me. I’ll sell at my target price but won’t be playing by buying artificially inflated stocks. A lot of people will be left holding an empty bag with just a ticker symbol scribbled on the front when these stocks fall back to near actual value.

From the MarketWatch article below:

“The price action is completely divorced from fundamentals. It’s a relatively small universe of retail investors that are pushing around a relatively small universe of stocks so at the end of the day, this Reddit army, they don’t have the wherewithal to sustain these big losses…It’s not going to be the institutions [left holding the bag]…it’s the kids on my basketball team asking me about how options work,”

1 Like

Fake stock value. Jump in and hold? No effing way .End of the day, shorts will prevail. Too much, too fast. Wouldnt touch that with a 20 foot pole.

Bloomberg, CNBC seem to be suddenly interested in this stock price manipulation but a bunch retail traders on Reddit. They are crying stock manipulation. I find it amusing. As an infamous politician recently said. "“Gotta admit it’s really something to see Wall Streeters with a long history of treating our economy as a casino complain about a message board of posters also treating the market as a casino,”

8 Likes

I’ve been holding sndl for a while & up 300% on it now. 150% of that has been gained in the last day & half. The SEC keeps halting that stock because too much volume & people wanting to buy. It’s been halted 3 times since 09:30. I think the powers that be are going to put a stop to this.

Update:
From what I can tell, my brokerage house will only let me sell if I want but not giving me the option to buy. BTW, I never use margins, I use my own money.

If you’re using options be sure to settle in cash, not stock. But I think you already know that :slight_smile:

1 Like

Yes you can sell if someone or market makers want it. But if it is a thinly traded stock those same market makers may want to hold what they just bought even for an hour, thus no shares available to buy. Market makers are happy to make one basis point due to the volume they can move. One or two basis points is of no value to you or I anyway.

The shorts are getting squeezed, but this is not a short squeeze. This is a massive pump waiting on the dump and someone will go to jail. I hope it’s Elon Musk.

I tried to put on a vertical put spread today, and it wasn’t permitted. I could buy a put, but I couldn’t sell the offsetting put 8-(

Ot it was definitely a short squeeze. Melvin Capitol had to close out their short position and take a $2+Billion cash infusion on Tuesday to shore up their finances. At this point the original shorts are probably out, and this bubble will burst.

I monitored wallstreetbets this morning and watched the pre-market surge again on $GME. It took 7-minutes from the open for me to get a buy order processed through Fidelity between the trading freezes. It was about another 10 minutes of glitchy price mis-match messages before I could sell at a 10% gain. Thats enough for me. I watched the trading halt at least 4 times and I don’t want to get stuck holding the bag.

According to 2 financial forums that I visit my brokerage house for sndl (Robinhood) isn’t the only one putting the breaks on their clients for that stocks.

I really don’t know what type of people would participate in these pyramid schemes. Maybe they’re fake accounts with borrowed money? But I don’t care, my buy in was .31 & I wanted to sell above $2.31. I thought it would take a year or 2 but if a bunch of rabble rousers wants to get it there today I’ll sell it to them now. BTW, no margins, no options or no crypto. Buy & hold and swing trading only for me.

According to Robinhood, the stocks being hit by the short squeeze mob are AAL, AMC, BB, BBY, CTRM, EXPR, GME, KOSS, NAKD, NOK, SNDL, TR, and TRVG. They put buying restrictions on these stocks. For several months I had a position in SNDL & recently, mistakenly, sold CTRM in the low .30’s.

Yeah I don’t think its just robinhood, its starting to look like a bloodbath now. Isn’t putting a buy restriction and only allowing selling the definition of market manipulation? It will necessarily drive the prices to the ground.

I’m also astonished that regulations allow more shares to be sold short than actually exist. At the beginning of the week GME had 120-138% short interest. That sort of allowed this mess to perpetuate.

1 Like

It’s all artificial. The stock is being hyped on social media. There’s a huge difference between what’s happening with GME and a classical short squeeze.

The main difference here is a complete and absolute divorce from the fundamentals. The fuel for a typical short squeeze comes from the shorts closing their positions. Here, dweeblets on social media are pumping up the stock with their own bullish bets.

That isn’t the case. See here:

It’s the brokerage houses that do it & profit from this. If you own a stock, even with a limit sale put in, they will lend out those shares creating the illusion that more shares exists. It’s all crooked.

I have another stock that shot up 50% in the last 5 mins (PED) & triggered a limit sell at $2.08. I think the mob has moved to other targets. Maybe this is some type of cyberattack?

1 Like

I think you missed the last sentence of your linked explanation:

The short interest ratio is not to be confused with the short interest , a similar concept whereby the number of shares sold short is divided by the number of outstanding shares. The latter concept does not take liquidity into account.

Yep and all this short interest was before the Reddit crowd got involved. There was no regulation or uproar when the hedge funds had more shorts in than stock available so why should regulators jump in now? Unless of course the regulators are only interested in protecting the professional gamblers on Wall St.
Kinda like Powell throwing money at Sachs, Citi and the rest when it looked like they couldn’t cover their derivative bets. Golden rule. Those with the gold rule :grinning_face_with_smiling_eyes:

4 Likes

I find it equal parts fascinating and frightening. I don’t want to miss out, buy my risk tolerance for this type of gambling isn’t what it used to be!

2 Likes