How GameStop found itself at the center of a groundbreaking battle...

Discussion in 'Current Events' started by HTownMarine, Jan 27, 2021.

  1. Robert Urbanek

    Robert Urbanek Active Member

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    The rebel investors have been watching too many episodes of Mr. Robot.
     
  2. AKS

    AKS Banned

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    I'm not really up to speed on how the stock market really works or what shorting stocks means. Can you explain it?
     
  3. DavidMK

    DavidMK Well-Known Member

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    You borrow shares you think are overvauled then after the correction, return the shares and pocket the difference. For example you place a short position on a $20 stock and cash out when it goes down to $15 for a $5/share profit.

    The problem here is the shorts were for 140% of outstanding shares. Any 3rd grader could point out the problem.
     
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  4. Quantum Nerd

    Quantum Nerd Well-Known Member

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    In essence, when you short a stock, you make return when the price of the stock goes down. Shorting stocks is betting against the company being profitable, or betting on some other reason why their stock is overvalued.
     
  5. doombug

    doombug Well-Known Member

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    Forget stocks buy cryptocurrency.....Doge!
     
  6. Quantum Nerd

    Quantum Nerd Well-Known Member

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    People, don't listen to this. If you want to invest and don't know how, check out the following forum:

    https://www.bogleheads.org/

    That's where I got my head start to financial independence.
     
  7. Zorro

    Zorro Well-Known Member

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    When a stock rockets from being fairly priced at $3 to $300 based on mania, the key to not being caught in the panic that will ensue as everyone rushes to the exits, is you have to panic first!

    Gamestop Shares Are Collapsing, Pelosi Says "Will Be Reviewing Issue"
    [​IMG]
    Raising margins, restricting access, blocking position-building, and widespread condemnation appears to have done the trick... for now.

    Wait! Hold that thought! GME shares are ripping back higher after being halted numerous times (but remain down on the day)...

    [​IMG]
    A Position In Search Of The Greater Fool

    GME is halted down 56% this morning after topping $500 briefly in the pre-market...

    [​IMG]
    Speaker Pelosi spoke up as the shares crashed saying that "she understands the Biden admin is looking at Gamestop" and added that she will be "reviewing the Gamestop issue."

    Somebody had to rescue the hedge funds from widespread liquidations...

    [​IMG]
    And the potential for that liquidation to expose the fallacy of the entire market's foundations.

    https://www.zerohedge.com/markets/it-over-gamestop-shares-halted-after-crashing-over-50

    I understand cheering this, but unfortunately this jeerybuilt monstrosity that these guys are pulling on holds up the global financial system.

    I want to see reform, but incrementally done with a surgeon's skill, not watching a bunch of kids drive a cement truck through it.

    Greenspan always kept an eye on the price of gold as he priced the dollar through fed interest rates, and it was thought that his balance number was $400/oz. Greenspan left 2/2006 and he had let Gold rise to $550/Oz (or the dollar to weaken). Had he pricked the bubble while it was in the $400/range, or in 2005 after the election, we would have had a mild recession rather than a global meltdown in 2008.

    [​IMG]

    I assure you that when this bubble pops that we all will be wishing that the Fed had popped this bubble sooner while the fall out would have been far more manageable. I'm frankly a little surprised that with this obviously open, wild, runaway speculation in the financial markets that the Fed isn't dropping some hints of rate hikes to sober these folks up a little.

    The hot liquidity (not paid for through the production of goods and services) involved here are stimulus checks and these kids using an app that allows them to trade without brokerage fees, and yes, it's been amazing to what stimulus/app/social media coordination has done, these kids are breaking $B hedge funds, but, the key to sitting down at any gambling table is knowing when to cash in your chips and leave, and it was time a few days ago.
     
    Last edited: Jan 28, 2021
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  8. Andrew Jackson

    Andrew Jackson Well-Known Member

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  9. doombug

    doombug Well-Known Member

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    Listen to a winner:
    1_4jnN7mtiWqgnIijF1yJwWg.png
     
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  10. HTownMarine

    HTownMarine Well-Known Member Past Donor

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    The ONLY reason the price dropped today is because the trading platforms conspired with the 1% to ban selling.

    Reddit banned subreddits discussing it. Discored banned them.

    This is borderline theft.

    Imagine you placing a bet on the Raiders to win the SB at +10000, then the Raiders end up making it to the SB, and your bookie telling you that your bet is canceled because the payout will be too much.

    If the platforms didn't agree to prevent buying, the 1% would have lost even more today.
     
    Last edited: Jan 28, 2021
  11. Ddyad

    Ddyad Well-Known Member

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    Call trading in Gamestop has apparently been shut down.
    Are the hedge funds still shorting the stock? ;-)

    Vote DP - the Party That Protects and Serves Hedge Funds!
     
  12. Ddyad

    Ddyad Well-Known Member

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    Selling half of any double is always a smart move.
     
  13. Ddyad

    Ddyad Well-Known Member

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    Gamestock went from 4 to 400/share. The option traders who made that happen should have been watching in real time. You know - like hedge fund managers. ;-)
     
  14. Ddyad

    Ddyad Well-Known Member

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    Our very corrupt bipartisan ruling political class will always work hard to protect its own.
    The Robin Hood, TD Ameritrade, Schwab option traders should have suspected that the game was rigged for the insiders - the hedge funds. Now the 'little people' know for sure. ;-)
     
  15. Ddyad

    Ddyad Well-Known Member

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    The stocks were artificially hyped down.
    That's why the call options worked so well.
     
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  16. doombug

    doombug Well-Known Member

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    Robinhood and others are screwing investors. Go for Doge!
     
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  17. Doofenshmirtz

    Doofenshmirtz Well-Known Member Past Donor

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    I am a long term guy and have never shorted a stock. It is a coincidence that the stimulus amount is exactly enough for a new Playstation and the newest Call of Duty!
     
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  18. HTownMarine

    HTownMarine Well-Known Member Past Donor

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    Big if true... also, probably illegal?

     
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  19. roorooroo

    roorooroo Well-Known Member Past Donor

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    The feds need to stay out of it. The market will take care of itself. What should be happening is that those who routinely short stocks need to be very careful moving forward. And less shorting would be a good thing for all, IMO.
     
  20. roorooroo

    roorooroo Well-Known Member Past Donor

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    I'm betting that Robinhood's terms of service say they can stop trading on anything, anytime they want to.
     
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  21. Quantum Nerd

    Quantum Nerd Well-Known Member

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    Welcome to the free market. If you wanted more protections for the little guy, you should have voted for Elizabeth Warren.
     
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  22. HTownMarine

    HTownMarine Well-Known Member Past Donor

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    There have to be limits.

    The justification can't be "because our XO is about to lose big on a risky bet".
     
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  23. Cubed

    Cubed Well-Known Member Past Donor

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    The feds need to investigate the company who owns Robinhood And Melvin for stopping trades on RH from destroying Melvjn.
     
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  24. roorooroo

    roorooroo Well-Known Member Past Donor

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    I doubt that robinhood broke any laws. I don't know if there should be limits. If robinhood turns out to be a sucky trading platform, everyone will abandon them and use something else more honest and trustworthy. As a freedom loving person, I err on the side of less laws and rules, but I do understand that consumers do need some protection against unscrupulous activities. Tough call.
     
  25. Ddyad

    Ddyad Well-Known Member

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    "Laws are for little people" - not for hedge fund investors or other political insiders.
     
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