GME, Hedge Funds, Citadel and Reddit

[Nouseforaname]

4 minutes ago, Ann said:

While she mentioned Robinhood, this goes far deeper than Robinhood. Market manipulations for thee, but not for me.  Now sit down peasant.
 

 

If wall street bets wants to manipulate the market, they can start a hedge fund, find a prime broker and do their thing.

[Nouseforaname]

1 minute ago, Ann said:

Your generality might be a wee bit off. 🙂
 

 

No I'm quite certain that I know what I'm talking about.

[Chef Jim]

13 minutes ago, DC Tom said:

 

She's ignorant as shit.  Robinhood's clearing house can't clear the trades, because the market for these stocks is SNAFU'd.  Hedge funds negotiate large blocks, away from the market, with other institutions, so they don't have the same issues with clearing.

 

Correct.  Joe blow thinks there's a market for his 100 shares of GME and he expects Robinhood to find a buyer?  

[Ann]

1 minute ago, GG1 said:

 

If anything, Robinhood's actions are saving many retail investors from taking a bath, where they clearly don't understand what they're buying.  If they're doing this as a gag to stiff the short sellers and are throwing a few hundred in the market to prove a point is one thing, but considering over $25 billion traded hands yesterday indicates that it may be more than that, and they are going to get badly burnt.

I think it may have started as a gag with a few hundred dollars per investor but snowballed into something more.  And, I do not disagree that those that got in after the first few days will be burnt. 

There is far more at play here, and it is certainly not altruism towards their customers. People are hooked on Robinhood this-and-that, but it is far more than Robinhood. When TD Ameritrade (Schwab) started curtailing the buying and selling, it was time to look deeper. And people did.

And I repeat: market manipulation for thee, but not for me.
 

[Chef Jim]

7 minutes ago, GG1 said:

 

If anything, Robinhood's actions are saving many retail investors from taking a bath, where they clearly don't understand what they're buying.  If they're doing this as a gag to stiff the short sellers and are throwing a few hundred in the market to prove a point is one thing, but considering over $25 billion traded hands yesterday indicates that it may be more than that, and they are going to get badly burnt.

 

This is a conundrum for me as a conservative.  I'm a big personal responsibility guy but sometimes we have to protect the little guy from themselves.  

[Nouseforaname]

1 minute ago, Ann said:

I think it may have started as a gag with a few hundred dollars per investor but snowballed into something more.  And, I do not disagree that those that got in after the first few days will be burnt. 

There is far more at play here, and it is certainly not altruism towards their customers. People are hooked on Robinhood this-and-that, but it is far more than Robinhood. When TD Ameritrade (Schwab) started curtailing the buying and selling, it was time to look deeper. And people did.

And I repeat: market manipulation for thee, but not for me.
 

 

TD did not curtail buying, they prevented people from buying on a margin since they share the risk, it's completely logical.

 

And since we all seem to care about the little guy, once these idiots know they aren't getting their money back, what's the plan?

 

Hedge Funds go under as often as restaurants do.  The major ones will survive and all you'll have is a rich ass Dave Portnoy who on one hand is helping small businesses and on the other hand is helping all his followers jump off a cliff.

Edited January 28, 2021 by Meazza

[Nouseforaname]

 

2 minutes ago, Chef Jim said:

 

This is a conundrum for me as a conservative.  I'm a big personal responsibility guy but sometimes we have to protect the little guy from themselves.  

 

Sorry I forgot to mention you lol

[Chef Jim]

1 minute ago, Meazza said:

 

 

Sorry I forgot to mention you lol

 

Just messing with you.  I've not been around a lot so I can understand why I slipped your mine.  😉 

[GG1]

2 minutes ago, Ann said:

I think it may have started as a gag with a few hundred dollars per investor but snowballed into something more.  And, I do not disagree that those that got in after the first few days will be burnt. 

There is far more at play here, and it is certainly not altruism towards their customers. People are hooked on Robinhood this-and-that, but it is far more than Robinhood. When TD Ameritrade (Schwab) started curtailing the buying and selling, it was time to look deeper. And people did.

And I repeat: market manipulation for thee, but not for me.
 

 

Please stop proving @Meazza's point.

 

TD's and Robinhood's actions were all about protecting their ability/inability to execute the orders.  It had very little to do with protecting the hedge funds.

 

If you want to attribute market manipulation to this episode, then it's a classic pump & dump scheme, to the 20x degree.  These schemes sent many people to jail, so please don't pretend that this is normal activity on the Street.  It's not.

[Dubs]

22 minutes ago, Meazza said:

 

Exactly and sorry for my friends here at Billsfans but none of you aside from @GG1 and @DcTom know &#%$ all about the stock market and how this works.

 

??  You're a weird dude/ette

[Ann]

6 minutes ago, GG1 said:

 

Please stop proving @Meazza's point.

 

TD's and Robinhood's actions were all about protecting their ability/inability to execute the orders.  It had very little to do with protecting the hedge funds.

 

If you want to attribute market manipulation to this episode, then it's a classic pump & dump scheme, to the 20x degree.  These schemes sent many people to jail, so please don't pretend that this is normal activity on the Street.  It's not.

I called it exactly that when this started. I would not disagree with that analysis. But what is going on now is different than what the gamers started.
 

[Foxx]

 

[GG1]

4 minutes ago, Ann said:

I called it exactly that when this started. I would not disagree with that analysis. But what is going on now is different than what the gamers started.
 

 

It's different because the gamers bid the stock up to $350, with no exit strategy, and threw the entire market into a tizzy with stupid trading strategies.  The retail brokers put the restrictions in place because they could not execute the mostly one-way orders.  This was about the backed up plumbing in the markets, not some concerted effort to control the little guy.

[Foxx]

https://twitter.com/LJMoynihan/status/1354836830169006081

 

https://twitter.com/kpottermn/status/1354829537822076930

 

[Ann]

4 minutes ago, GG1 said:

 

It's different because the gamers bid the stock up to $350, with no exit strategy, and threw the entire market into a tizzy with stupid trading strategies.  The retail brokers put the restrictions in place because they could not execute the mostly one-way orders.  This was about the backed up plumbing in the markets, not some concerted effort to control the little guy.

With no exit strategy and stupid trading strategies.... ummmm

 

[Foxx]

[Ann]

https://twitter.com/RitaPanahi/status/1354634668746838020
 

 

[GG1]

Just now, Ann said:

With no exit strategy and stupid trading strategies.... ummmm

 

 

What would you call it?

 

Gamestop is on the verge on bankruptcy, with very limited options.  The banks who own $500 million in debt control the future of the company.  So tell me how that justifies a $350 share price of a stock that you don't have the real power to sell without an intermediary with DIRECT access to the exchange.

 

In my world, these are stupid trading and exit strategies

[Foxx]

[Foxx]