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Anyone participating in the GameStop short squeeze? Login/Join 
eh-TEE-oh-clez
Picture of Aeteocles
posted
If you don't understand what the title is referring to, this article explains what's happening.

https://www.vox.com/the-goods/...etbets-reddit-citron

I had 500ish shares that I let go way too early during the gamma squeeze last Thursday and Friday. I've been in and out of positions today, scalping on momentum. Not sure what's going to happen tomorrow, but it'll be interesting to watch.
 
Posts: 13046 | Location: Orange County, California | Registered: May 19, 2002Reply With QuoteReport This Post
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That is unreal. I bet the Wall Street types are thrilled to see the rise of the "meme stock." Imagine how many pissy things have been whispered into scotch glasses this past month!


We believe arming our fellow Americans – both physically and philosophically – helps them fulfill our Founding Fathers' intent with the Second Amendment: To serve as a check on state power.
 
Posts: 277 | Registered: January 10, 2020Reply With QuoteReport This Post
eh-TEE-oh-clez
Picture of Aeteocles
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The idea of some short sellers crying to sleep tonight warms my heart a bit.
 
Posts: 13046 | Location: Orange County, California | Registered: May 19, 2002Reply With QuoteReport This Post
eh-TEE-oh-clez
Picture of Aeteocles
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Melvin Capital is down 30% for the year. They got a 2.5bn injection because of their losses.

GameStop was up to $245 in after hours.

I've lost count of how many millionaires are showing off their gain porn on Reddit.
 
Posts: 13046 | Location: Orange County, California | Registered: May 19, 2002Reply With QuoteReport This Post
Achievement Unlocked
Picture of SIGnul 9
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I’ve been following the drama since last week but never jumped in. It’s been fun to watch. One thing I don’t understand is the endgame. At some point all of them will eventually have to sell which will tank the stock right? So some will make a boatload and the rest will lose their asses? Especially the ones jumping in this late in the game.




This is one of the few signals that can't be caught or blocked; when a process is sent SIGKILL, it never runs again. This is signal 9, as in the ever-popular kill -9
 
Posts: 1050 | Location: Las Vegas, NV | Registered: August 11, 2004Reply With QuoteReport This Post
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kicked in the teeth:

https://www.marketwatch.com/st...27?mod=mw_latestnews

Hedge fund Melvin Capital closes out GameStop short: CNBC --- Published: Jan. 27, 2021 at 7:16 a.m. ET

Hedge fund Melvin Capital closed out its short position in videogame retailer GameStop Corp., CNBC reported Wednesday. Fund manager Gabe Plotkin told CNBC's Andrew Ross Sorkin that the position was closed out Tuesday afternoon following a huge loss. Shares of GameStop have soared more than 600% in January after retail investors, organized via Reddit's WallStreetBets forum and other platforms, sought to push up a handful of heavily shorted stocks. Hedge funds Citadel and Point72 infused nearly $3 billion into Melvin Capital to shore up the fund, news reports said earlier this week. Plotkin told CNBC that speculation the fund would file for bankruptcy is false. Also, Andrew Left of Citron Research, in a video posted to YouTube on Wednsesday, said he covered the majority of Citron's short position in GameStop in the $90 price range.Shares of GameStop trimmed premarket gains after the report but remained up 78%.

===============================

just a casual observer on my part. like watching a financial train wreck happening (for some).

i thinks it's hilarious. gonzo capitalism.


====================================


Proverbs 27:17 - As iron sharpens iron, so one man sharpens another.
 
Posts: 8940 | Location: Florida | Registered: September 20, 2004Reply With QuoteReport This Post
I'd rather have luck
than skill any day
Picture of mjlennon
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At one point it was trading at $360 this morning. Trading in after hours is limited volume, so it can be quite volatile. Endgame-those participating in this are doing so for the excitement, it’s gambling. But, it won’t end well. As soon as there’s weakness, you won’t be able to bail quickly enough. Watch it fall like a rock today durning normal trading hours. Anyone with half a brain would take the profits and run. How many fools are left to buy at these levels?
 
Posts: 1817 | Location: Fayetteville, Georgia | Registered: December 08, 2005Reply With QuoteReport This Post
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I don’t gamble with my money. It’s the same reason I don’t mess with single stocks.

 
Posts: 3875 | Registered: January 25, 2013Reply With QuoteReport This Post
Semper Fi - 1775
Picture of Ronin1069
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I missed GameStop but the alleged next target is AMC. I went in on that and will be monitoring it throughout the day.


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Posts: 12305 | Location: Belly of the Beast | Registered: January 02, 2009Reply With QuoteReport This Post
eh-TEE-oh-clez
Picture of Aeteocles
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GameStop touched $380 and AMC up 400% in pre market. Lol.
 
Posts: 13046 | Location: Orange County, California | Registered: May 19, 2002Reply With QuoteReport This Post
eh-TEE-oh-clez
Picture of Aeteocles
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The best part is that Andrew Left at Citron was being a condescending prick. He didn't think any of the 2 million Redditors on the WallStreetBets sub-Reddit could possibly be as smart as him.
 
Posts: 13046 | Location: Orange County, California | Registered: May 19, 2002Reply With QuoteReport This Post
eh-TEE-oh-clez
Picture of Aeteocles
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Pretty sure this nonsense triggered an overall market drop. 90% of my watchlist is extensively in the red.
 
Posts: 13046 | Location: Orange County, California | Registered: May 19, 2002Reply With QuoteReport This Post
Get my pies
outta the oven!

Picture of PASig
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I've been seeing a lot of articles on Zero Hedge the past few days about this.

Would someone care to translate all what's happening into plain English for a non-financial/markets type nerd like me?


 
Posts: 33608 | Location: Pennsylvania | Registered: November 12, 2007Reply With QuoteReport This Post
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Picture of jbcummings
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quote:
Originally posted by PASig:
I've been seeing a lot of articles on Zero Hedge the past few days about this.

Would someone care to translate all what's happening into plain English for a non-financial/markets type nerd like me?


Two words: Russian roulette.


———-
Do not meddle in the affairs of wizards, for thou art crunchy and taste good with catsup.
 
Posts: 4306 | Location: DFW | Registered: May 21, 2012Reply With QuoteReport This Post
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Lot of folks are gonna be hurting on the way down. (other than those that jumped in early)
 
Posts: 4979 | Registered: April 20, 2010Reply With QuoteReport This Post
eh-TEE-oh-clez
Picture of Aeteocles
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GameStop is a sucky brick and mortar video game store, about to go the way of Blockbuster.

A rockstar CEO comes along and thinks he can turn GameStop around, so he joins their executive board. The internet rallies.

Melvin Capital, a giant hedge fund, bets against GameStop and sets up a short position. They borrow millions of shares from brokerages and agree to return the shares at a later date. The strategy is to sell the borrowed shares to other investors at a certain price, then hope for the share price to drop so that Melvin can then buy them back and return them to the lender. The profit is the spread between the price they borrowed the shares at and the lower price they are able to buy the shares back at.

A bunch of people on Reddit, recognized that waaaaay too many shares were borrowed and being shorted. They figured if everyone bought a few shares and just held on to them, the price of each share would spike massively as the lenders would force short sellers to liquidate their shares at market price and return the shares. This is called a short squeeze.

This started to happen, people started buying a bunch of shares, snowballing the price up from the single digits, to the teens and then the 30s. Another short sellers, Citron Research, tweeted that he was going to release a Livestream video on the 5 reasons why GameStop was going back to $20. It was a massive failure. The guy looked like an old Boomer who couldn't use technology. The price spiked to $60.

News got out to the wider internet about the face off between regular retail investors and these short selling hedge funds. Thousands of Reddit users committed to buying and holding shares, fueled by screenshots of "gain porn" and rocket memes. The Reddit subforum gained hundreds of thousands of new members in days.

The rallying cry is to buy and hold shares. Melvin Capital had to liquidate their short position, losing billions of dollars and and down 30%.

The squeeze continues through Friday. Shares were up to $380 this morning.

Reddit is now hunting and destroying other short sellers in underperforming companies such as BlackBerry, AMC Theaters, and Bed Bath and Beyond. AMC is the next squeeze, already up 400% from yesterday.

It's hilarious and warms my heart.
 
Posts: 13046 | Location: Orange County, California | Registered: May 19, 2002Reply With QuoteReport This Post
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In a nutshell the market is tanking a bit because the masses have figured out a way to fuck the big funds that play the market. Perhaps.

It’s kinda like the Trading Places movie but without the illegal orange crop report. Big funds are betting GameStop stock goes down (probably bankrupt) because the fundamentals all show it should so they short the stock. This isn’t impossible to find out info, it’s readily available if you know how to look. The Redditors basically organize a mob to buy up the shorted stick which drives up the price of stock, the big funds have to cover that rise because it’s a fairly short term play and have to buy the stock which actually ALSO drives up price. It’s the classic self fulfilling prophecy.

Yes the big funds will get fucked. So will everyone who got in late or rode it out. This has nothing but disaster for those people.

While an interesting story to watch and even play, it’s not good for the overall market. This model could literally rise and fall any stock in the world done correctly. For absolutely no actual rational reason.

The market has always had an element of action that defies the analytics but this is crazy. And make no doubt, maybe this one was done for kicks but the next one tried will be for pure profit regardless of what the “memes” say. And that profit will be from big funds and any individual too stupid to realize when they are over their head.

Just like any scheme, if you play, get in early and get out early or you will be fucked.
 
Posts: 7347 | Location: Florida | Registered: June 18, 2005Reply With QuoteReport This Post
Do the next
right thing
Picture of bobtheelf
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Next one the redditors will get fucked because the game is exposed and the big boys will figure out how to play it better.
 
Posts: 3657 | Location: Nashville | Registered: July 23, 2012Reply With QuoteReport This Post
I Am The Walrus
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quote:
Originally posted by jbcummings:
Two words: Russian roulette.


It's probably playing Russian roulette with a semi-auto pistol at that.

While you read about stories of people making money off this, I'm staying away from it. I have my steady stocks that I buy and hold such as Apple, O, WMT, etc.


_____________

 
Posts: 13047 | Registered: March 12, 2005Reply With QuoteReport This Post
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All the talk of “giving to the big boys”, “fun to watch”, “they had it coming”, etc is nonsense. The memes on Reddit are all a ploy to get you to play this game. It only works if you buy into it. It also only pays off for those who started it and got out while others were still piling in. Yes, at end of day the big hedge funds lost billions. And if you stayed in or had no choice but to stay in you now own the most wildly overpriced stock on the market today. The fundamentals aren’t wrong. GameStop is a loser.

The smarts behind this marketed a campaign against the evil Wall Street guys (it’s hard to not want to cheer lol) but they bought before the campaign started and they pulled their massive profits out before this little tragicomedy plays out.

Don’t be a sucker. Or conversely, play the game with money you can afford to lose. And realize if this continues the SEC will put an end to it one way or the other.

It is fun to watch. There will be victims. And it won’t be the Wall Street guys at 5he end if the day. Ok, maybe a few Wall Street guys.
 
Posts: 7347 | Location: Florida | Registered: June 18, 2005Reply With QuoteReport This Post
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