Oh stewardess, I speak jive.
| I see that. WSJ put this out within the last hour. Photos. Prior Interview. (Behind a paywall) |
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186,000 miles per second. It's the law.
| Market rolling over. Last three trading days have the feel of a topping pattern. Also, tops are often marked by speculative frenzy, which we certainly are having. |
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Be prepared for loud noise and recoil
| For those more in the know... How many shorts have to be closed today? Is it by the market close? How many more are out there? Is there going to be a spike from those that have to cover their positions? And has all the big money (hedge funds) already gotten out?
“Crisis is the rallying cry of the tyrant.” – James Madison
"Keep your fears to yourself, but share your courage with others." - Robert Louis Stevenson |
| Posts: 3620 | Location: Middle Tennessee | Registered: March 23, 2006 |
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eh-TEE-oh-clez
| quote: Originally posted by sigalert: For those more in the know...
How many shorts have to be closed today? Is it by the market close? How many more are out there? Is there going to be a spike from those that have to cover their positions? And has all the big money (hedge funds) already gotten out?
The big money can continue to pay interest on shorted shares rather than cover. Interest at this point is likely astronomical, but the hedges have money. It's a game of chicken, but not just between retailers, but against multiple hedges as well. The price is currently very high, no hedge wants to cover at this price, but if one of them did, the price would spike for the oghers. It's a tough choice, cover now, cover later at a higher price, or pay interest and pray that the line breaks and the stock price tumbles to a lower number. Numbers are reported twice a month, so no accurate picture of what's happening. Just estimates from algorithms. |
| Posts: 13051 | Location: Orange County, California | Registered: May 19, 2002 |
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Peace through superior firepower
| This must be the worst thing that's happened, anywhere, ever. |
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Exceptional Circumstances
| quote: Originally posted by parabellum: This must be the worst thing that's happened, anywhere, ever.
That is perhaps how it feels to those who have ruled Wall St with impunity. Very scary to get kicked in the balls for the first time. "How could this happen?" Nothing a little ice and more manipulation can't fix.
------------------------------------------------------------------------------------------ ΜΟΛΩΝ ΛΑΒΕ
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| Posts: 5914 | Location: Hampton Bays, NY | Registered: October 14, 2006 |
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Member
| quote: This must be the worst thing that's happened, anywhere, ever.
^^^^^^^^^^^^ I guess some folks did not catch the sarcasm. Thanks for posting. The only worse day was when the guy did not show to wash my Lambo! |
| Posts: 17268 | Location: Stuck at home | Registered: January 02, 2015 |
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186,000 miles per second. It's the law.
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| was reading an article on CNBC that many of the original value short positions had been closed. The current high short interest are from the new shorts entering with the skyhigh spiking of the share price. I went short at $320. Much harder to squeeze shorts entering at $2-400+ than the original value shorts. Longs also don't have much of the option chain gamma squeeze on their side now that the Jan expiry came and went. At least there won't be a gamma rush until Feb expiry. quote: "While the 'value shorts' that were in GME earlier have been squeezed, most of the borrowed shares that were returned on the back of the buy to covers were shorted by new momentum shorts in the name," Dusaniwsky added in an email.
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| Posts: 1804 | Location: Austin TX | Registered: October 30, 2003 |
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eh-TEE-oh-clez
| quote: Originally posted by Skull Leader: Aeteocles, I have a question about this whole thing.
Could Melvin Capital go straight to the folks they borrowed the GME shares from to short and strike a deal with them? Ask them what they would accept for their shares rather than having to replace them?
I think if I had lent my shares to them and am seeing all that is going on I'd be worried about the ability of Melvin Capital to get me my shares back if they go bankrupt.
No idea, actually. It's a good question though. |
| Posts: 13051 | Location: Orange County, California | Registered: May 19, 2002 |
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| quote: Originally posted by Skull Leader: Aeteocles, I have a question about this whole thing.
Could Melvin Capital go straight to the folks they borrowed the GME shares from to short and strike a deal with them? Ask them what they would accept for their shares rather than having to replace them?
I think if I had lent my shares to them and am seeing all that is going on I'd be worried about the ability of Melvin Capital to get me my shares back if they go bankrupt.
I'd think they couldn't because these other whales are also funds which have fiduciary responsibilities with their own clients, which could be us with our 401k, IRA, Roth, 529, municipalities, etc accounts in their assets. So why would these other funds also take a bath for Melvin or Citron risky business? If the reports from CNBC are accurate, that Melvin and Citron did close out most of their original shorts, and that the currently still very high short interests are from new shorts entering or they opened new short positions, then the squeeze of the new shorts are probably still a distance away. |
| Posts: 1804 | Location: Austin TX | Registered: October 30, 2003 |
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| Not going to lie — shorting at these prices is pretty tempting. It's only a matter of time before weak hands dump, and it all comes crashing down. |
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