GME, Hedge Funds, Citadel and Reddit

[LB3]

1 hour ago, Meazza said:

 

I'm willing to bet that a shit load of people that are home, just received a bit of stimulus and blew it on this thinking they will get rich.  Does that mean that they deserve sympathy? No. 

 

But I do see tons of people in my entourage egging these people on for shits and giggles and the Dave Portnoy's of the world who are not helping.

 

Do I feel bad for these people? Yes because for many, they won't be able to recover and I don't think they know any better.

 

 

 

I get the broader issue but I don't think the anger is directed at the right people.  Robin hood and hedge fund guys are just regular folks working for institutions that go by a set of rules and the "influencers" such as Pizza Dave, Elon Musk or AOC are just stoking a fire that they should be trying to put out.

 

 

+1

[Nouseforaname]

10 hours ago, LB3 said:

Ever since he said Neapolitan pizza is garbage he’s dead in my book.

 

He’s the nick wright of pizza reviewers.

[plenzmd1]

18 hours ago, Dubs part Dub said:

 

At this point, we don't know who made/lost how much money and how much of that was an impact on their lives.  We don't know each individual investors motivation.  Trying to group the entire retail investor group as a monolith would be a very inaccurate approach.  Just as using the people who get crushed as an example of why retail as a group needs to stay in the play pen.  And since when do we need to protect people against bad investments?  If someone wants to put their life savings into GME at $300 because someone on Reddit said so, so be it.  Welcome to the world, hope you enjoy the learning experience.

 

It does seem like you are missing the broader discussion.  There is a widespread, and growing, anger with the institutions in this country and the world.  Media, Academia, Tech, Government, and Wall Street.  Each time we see one of these instances, the institutions seek to dismiss, divide and conquer.  This is another example of it.  Dismissing everyone who hopped on the train as stupid shows a shocking misunderstanding of the environment we are in now and a massive amount of hubris, considering we have no idea what the average investment by a "retail" investor was, who is losing money, etc...

 

And trust me, I am not advocating that this is a good idea.  I don't talk about my personal life on here, but I've been in the industry for 20 years, it doesn't take that level of experience to know that this is not going to end well for many people.

i have been talking with my 20year old nephew since prolly August on stock trading/investing. Mind you, this is a kid from a family with zero invested in the market and most likely not around anyone besides me who has had a ton of exposure to the market . He also works full time, prolly makes $12 an hour, and every penny is important to him.

 

He came to me asking questions at the beginning to just get a grasp on even what the market was, how it worked, just basic mechanics. At that point, he had made a few small trades in some fractional shares of the high flying stocks, had made some money..and then got sucked up into some penny stocks.   

 

As we walked through that, the perils, the pump and dumps, the huge spreads in penny stocks etc...he took his beating and exited those postions. 

 

Over the course of the last 4 months, he has immersed himself into learning more about the market almost daily and making some really quality trades. Any questions he has he is not afraid to ask and learn. 

 

He was all over this Gamestop thing when i was back for the Baltimore game..2 weeks ago now i guess. I was SOOO impressed when he laid out why he bought the stock, the forthcoming short squeeze...he had it nailed. And for those saying these investors don't get it?   I was the one who did not listen to him..and man has it cost me a lot of money.

 

He was the one who taught me what a gamma squeeze is. I mean its been a long while, but a had a Series 7 and 63 back in the day...that was not on any test i ever took!

 

He understands and knows 100% what this play is..you think a 20 year old who games like crazy and hasn't set foot in a gamestop in 5 years does not get it? But damn, the kid is playing this like a champ. Already banked , yes, actually cash money in the bank, more money in 2 weeks than he will prolly make this year...and he still has some chips on the table, more than a few actually. He did his research, he knew the risk, he played it like a pro and he is benefiting. 

 

These young dudes are so much better off than so many in the 40-65 yr old group that just buy funds in their 401K and forget about it..these folks will be investors and stock pickers for life..and build wealth through it. 

 

I think it is freaking awesome.....

 

 

[Nouseforaname]

1 hour ago, plenzmd1 said:

i have been talking with my 20year old nephew since prolly August on stock trading/investing. Mind you, this is a kid from a family with zero invested in the market and most likely not around anyone besides me who has had a ton of exposure to the market . He also works full time, prolly makes $12 an hour, and every penny is important to him.

 

He came to me asking questions at the beginning to just get a grasp on even what the market was, how it worked, just basic mechanics. At that point, he had made a few small trades in some fractional shares of the high flying stocks, had made some money..and then got sucked up into some penny stocks.   

 

As we walked through that, the perils, the pump and dumps, the huge spreads in penny stocks etc...he took his beating and exited those postions. 

 

Over the course of the last 4 months, he has immersed himself into learning more about the market almost daily and making some really quality trades. Any questions he has he is not afraid to ask and learn. 

 

He was all over this Gamestop thing when i was back for the Baltimore game..2 weeks ago now i guess. I was SOOO impressed when he laid out why he bought the stock, the forthcoming short squeeze...he had it nailed. And for those saying these investors don't get it?   I was the one who did not listen to him..and man has it cost me a lot of money.

 

He was the one who taught me what a gamma squeeze is. I mean its been a long while, but a had a Series 7 and 63 back in the day...that was not on any test i ever took!

 

He understands and knows 100% what this play is..you think a 20 year old who games like crazy and hasn't set foot in a gamestop in 5 years does not get it? But damn, the kid is playing this like a champ. Already banked , yes, actually cash money in the bank, more money in 2 weeks than he will prolly make this year...and he still has some chips on the table, more than a few actually. He did his research, he knew the risk, he played it like a pro and he is benefiting. 

 

These young dudes are so much better off than so many in the 40-65 yr old group that just buy funds in their 401K and forget about it..these folks will be investors and stock pickers for life..and build wealth through it. 

 

I think it is freaking awesome.....

 

 

No one (here anyway) is saying that there is a problem with the short squeeze.  The issue many of us have is that most of the big funds most likely closed out their positions and you now have retail investors buying in for what simply seems like a trend.

 

I wouldn’t be surprised if there was some that are just trying to push up more demand for the stock so they can dump their positions.  
 

 

[Just Joshin]

2 minutes ago, Meazza said:

No one (here anyway) is saying that there is a problem with the short squeeze.  The issue many of us have is that most of the big funds most likely closed out their positions and you now have retail investors buying in for what simply seems like a trend.

 

I wouldn’t be surprised if there was some that are just trying to push up more demand for the stock so they can dump their positions.  
 

 

This is my thought.  I am OK with hedge funds being cleaned out with their short strategy.  They made a bet and lost.

 

Once those positions are cleared, this is investing on momentum.  That is a valid strategy but long term this is not a $300 stock based on fundamentals.  It is turning into a pump and dump where the last one in loses the most.  This is gambling, not investing.

 

We will hear that this is the new normal but these all have a way of reverting back to the laws of investment.

[B-Man]

[Chef Jim]

I imagine this has been mentioned here but my biggest concern is if the internet can get the word out to artificially inflate an essentially worthless stock to 100's of percent of it's real value what will prevent the same people doing that for ANY stock?

 

They accuse the hedge funds of market manipulation and then went out and did the same thing. 

[IDBillzFan]

7 minutes ago, Chef Jim said:

I imagine this has been mentioned here but my biggest concern is if the internet can get the word out to artificially inflate an essentially worthless stock to 100's of percent of it's real value what will prevent the same people doing that for ANY stock?

 

They accuse the hedge funds of market manipulation and then went out and did the same thing. 

 

If the internet can get the worthless stock of a 78-year-old dementia patient 100s of percent of his real value and earn 12 million more votes than the historic first black president, it can absolutely do whatever the hell it wants.

[Nouseforaname]

33 minutes ago, Chef Jim said:

I imagine this has been mentioned here but my biggest concern is if the internet can get the word out to artificially inflate an essentially worthless stock to 100's of percent of it's real value what will prevent the same people doing that for ANY stock?

 

They accuse the hedge funds of market manipulation and then went out and did the same thing. 

Exactly.

 

If a 6 year old kid could make millions of dollars a year reviewing toys on YouTube, how will I ever convince my kids to go to school ?

Edited January 30, 2021 by Meazza

[KD in CA]

If this can happen, it's only a matter of time before I cash out my meadcoin for billions.

 

https://www.cnn.com/2021/01/29/investing/dogecoin-surge-reddit-intl-hnk/index.html

[Dubs]

4 hours ago, plenzmd1 said:

i have been talking with my 20year old nephew since prolly August on stock trading/investing. Mind you, this is a kid from a family with zero invested in the market and most likely not around anyone besides me who has had a ton of exposure to the market . He also works full time, prolly makes $12 an hour, and every penny is important to him.

 

He came to me asking questions at the beginning to just get a grasp on even what the market was, how it worked, just basic mechanics. At that point, he had made a few small trades in some fractional shares of the high flying stocks, had made some money..and then got sucked up into some penny stocks.   

 

As we walked through that, the perils, the pump and dumps, the huge spreads in penny stocks etc...he took his beating and exited those postions. 

 

Over the course of the last 4 months, he has immersed himself into learning more about the market almost daily and making some really quality trades. Any questions he has he is not afraid to ask and learn. 

 

He was all over this Gamestop thing when i was back for the Baltimore game..2 weeks ago now i guess. I was SOOO impressed when he laid out why he bought the stock, the forthcoming short squeeze...he had it nailed. And for those saying these investors don't get it?   I was the one who did not listen to him..and man has it cost me a lot of money.

 

He was the one who taught me what a gamma squeeze is. I mean its been a long while, but a had a Series 7 and 63 back in the day...that was not on any test i ever took!

 

He understands and knows 100% what this play is..you think a 20 year old who games like crazy and hasn't set foot in a gamestop in 5 years does not get it? But damn, the kid is playing this like a champ. Already banked , yes, actually cash money in the bank, more money in 2 weeks than he will prolly make this year...and he still has some chips on the table, more than a few actually. He did his research, he knew the risk, he played it like a pro and he is benefiting. 

 

These young dudes are so much better off than so many in the 40-65 yr old group that just buy funds in their 401K and forget about it..these folks will be investors and stock pickers for life..and build wealth through it. 

 

I think it is freaking awesome.....

 

 

Great story!  
 

it’s basically what Chamrath was saying. Stop treating everyone who’s not a hedge fund manager as some brainless dope. People are not a monolith and it’s time we stop trying to protect the few at the expense of the many. 
 

There is no better way to learn than to give something a shot. If you fail, learn and try again. This is the USA, not Canada or France. 

[KD in CA]

5 hours ago, plenzmd1 said:

i have been talking with my 20year old nephew since prolly August on stock trading/investing. Mind you, this is a kid from a family with zero invested in the market and most likely not around anyone besides me who has had a ton of exposure to the market . He also works full time, prolly makes $12 an hour, and every penny is important to him.

 

He came to me asking questions at the beginning to just get a grasp on even what the market was, how it worked, just basic mechanics. At that point, he had made a few small trades in some fractional shares of the high flying stocks, had made some money..and then got sucked up into some penny stocks.   

 

As we walked through that, the perils, the pump and dumps, the huge spreads in penny stocks etc...he took his beating and exited those postions. 

 

Over the course of the last 4 months, he has immersed himself into learning more about the market almost daily and making some really quality trades. Any questions he has he is not afraid to ask and learn. 

 

He was all over this Gamestop thing when i was back for the Baltimore game..2 weeks ago now i guess. I was SOOO impressed when he laid out why he bought the stock, the forthcoming short squeeze...he had it nailed. And for those saying these investors don't get it?   I was the one who did not listen to him..and man has it cost me a lot of money.

 

He was the one who taught me what a gamma squeeze is. I mean its been a long while, but a had a Series 7 and 63 back in the day...that was not on any test i ever took!

 

He understands and knows 100% what this play is..you think a 20 year old who games like crazy and hasn't set foot in a gamestop in 5 years does not get it? But damn, the kid is playing this like a champ. Already banked , yes, actually cash money in the bank, more money in 2 weeks than he will prolly make this year...and he still has some chips on the table, more than a few actually. He did his research, he knew the risk, he played it like a pro and he is benefiting. 

 

These young dudes are so much better off than so many in the 40-65 yr old group that just buy funds in their 401K and forget about it..these folks will be investors and stock pickers for life..and build wealth through it. 

 

I think it is freaking awesome.....

 

 

 

There's no question that a good % of the millennials are quickly getting dialed in to this stuff.  For all the jokes about dumb, whiney millennials (of which there are plenty), I've been amazed for years at how smart and serious a large segment of that group is on all sorts of issues.  In my 20s I pretty much only cared about happy hour and getting laid.

[Ann]

53 minutes ago, Dubs part Dub said:

Great story!  
 

it’s basically what Chamrath was saying. Stop treating everyone who’s not a hedge fund manager as some brainless dope. People are not a monolith and it’s time we stop trying to protect the few at the expense of the many. 
 

There is no better way to learn than to give something a shot. If you fail, learn and try again. This is the USA, not Canada or France. 

Hubby and I had a discussion about this today and he is right there with you. 

He's also amazed at how condescending, entitled, and unaware a lot of the talking heads and current Wall Street megaphones have been. 

I cannot disagree with either one of you.


 

[Nouseforaname]

32 minutes ago, Ann said:

Hubby and I had a discussion about this today and he is right there with you. 

He's also amazed at how condescending, entitled, and unaware a lot of the talking heads and current Wall Street megaphones have been. 

I cannot disagree with either one of you.


 

Elite people condescending? Color me shocked 

[Foxx]

I've no idea how they are going to pull this one off as the money needed would be so big, I just can't fathom it.

https://twitter.com/TheLastDegree/status/1355421691871170560

 

[Joe]

3 hours ago, Dubs part Dub said:

Great story!  
 

it’s basically what Chamrath was saying. Stop treating everyone who’s not a hedge fund manager as some brainless dope. People are not a monolith and it’s time we stop trying to protect the few at the expense of the many. 
 

There is no better way to learn than to give something a shot. If you fail, learn and try again. This is the USA, not Canada or France. 

 

Trumpists are to Establishment Republicans as GME guys are to normie hedge fund/investment people

 

[Beer__League__Hockey]

So big picture - is this a coordinated effort to render the stock market useless in a USSR sort of way?  The gov’t will ultimately have to step in and regulate the market into oblivion?

[Nouseforaname]

11 minutes ago, BeerLeagueHockey said:

So big picture - is this a coordinated effort to render the stock market useless in a USSR sort of way?  The gov’t will ultimately have to step in and regulate the market into oblivion?

No, this is just a bunch of people with too much time on their hands.

[Foxx]

I've a hunch that the emotional outpouring over this event is mostly over at this point.

 

I'll go out on a limb here and say that we should be looking for some other event to arise beginning on or around the 8th of Feb that will become noticeable by the 11th. Expect the emotional release from this next event, whatever it is going to be, to be for a much longer period.

[Chef Jim]

2 hours ago, Meazza said:

No, this is just a bunch of people with too much time on their hands.

 

And likely a lot of people stuck with their dicks in their hands.