GME, Hedge Funds, Citadel and Reddit

[Nouseforaname]

14 minutes ago, Foxx said:

It is called a 'casino' for a reason.

 

I certainly do not want to see anyone getting hurt here. However, there are underpinnings of this play that are deeper than the pocketbook.

 

 

 

When I go to the casino, I expect to win and cash out at one point.

 

You may not want to see anyone getting hurt but that's exactly what is and will ultimately happen.

 

And while some hedge funds will go under (and many do often enough), you're hurting the little guy.

[Ann]

https://twitter.com/JackPosobiec/status/1354858011941089282
 

 

[snafu]

53 minutes ago, Foxx said:

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

 

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

 

 

There's a good list that, as a retail investor, I think I'll stay away from.

Maybe I'll check in on those in a month and buy the travel related ones cheap.

 

 

[Foxx]

25 minutes ago, GG1 said:

 

What you describe as market manipulation is actually the assymetry between information and market access between institutional and retail investors.  There have been countless discussions ATOp about this, and particularly with the moron Birddog who insisted that the field should be level.  But how would you make that work?  Do you penalize Goldman Sachs because they spend $1 billion/year on trading platforms, information and systems and the retail investor doesn't?

As I said, I do have an issue with people making money peddling the lie that retail can be on the same footing as institutional.  Always have and always will.  My view is extreme in that SEC's regulations are backwards, and it's the investors that need to pass the tests, not the brokers.   But since we're not in that world, then retail needs to understand that they will never ever be on the same footing as institutional.    

My quarrel is not necessarily within the disparity of retail versus institutional but rather the corruption that exists on one side of the ledger.  The pump and dump schemes (amongst others) that the institution has leveraged to their benefit at the expense of retail, is what is at the heart of this current play.  Though that may not be what this started out as, that is exactly what this has morphed into.

 

I will stand upon the side of the little guy each and every single time. I am a Buffalo Bills Fan so I know full well all about being the underdog.

[snafu]

49 minutes ago, Ann said:

1) They do not need an exit strategy.
2) All non-professional trading strategies may appear stupid to a professional. That does not mean they are stupid to the person doing the trade.
3) Gamestop at $5 makes me laugh. But, I am not the boss of someone else (well, except my husband 🙂 ). If the big boys can manipulate the market for XYZ reasons, then why can't the little guy do the same for ABC reasons?

 

 

Re: (1) -- a lot of people who got caught up in this are wishing they had an exit strategy.  I'd wager that most of them wanted to make money, not stick a thumb in the "institution's" eye.

 

 

[Foxx]

https://twitter.com/Cernovich/status/1354841643539554313

 

[snafu]

41 minutes ago, Foxx said:

Short game, no one. Long game, Joe and Betty Six-Pack. At least that is the perceived hope if I am understanding this play correctly.

 

This play as you call it isn't sustainable.

In the end, hedge guys won't broadcast their moves so much.  They'll just make their evaluation and wait for the stock to drop.  And how many times are institutional protesters going to take it in the arse just to prove their point?

 

[Foxx]

re; my comment on rechanneled energies:

https://twitter.com/JackPosobiec/status/1354858629522989057

 

These energies are not going away until the old paradigm collapses and is gone.

[Gary M]

Just now, snafu said:

In the end, hedge guys won't broadcast their moves so much.  They'll just make their evaluation and wait for the stock to drop.

 

 

But the broadcast to drive the stocks down was their play, they can't help themselves.

[GG1]

9 minutes ago, Foxx said:

My quarrel is not necessarily within the disparity of retail versus institutional but rather the corruption that exists on one side of the ledger.  The pump and dump schemes (amongst others) that the institution has leveraged to their benefit at the expense of retail, is what is at the heart of this current play.  Though that may not be what this started out as, that is exactly what this has morphed into.

 

I will stand upon the side of the little guy each and every single time. I am a Buffalo Bills Fan so I know full well all about being the underdog.

 

Just to be clear, in this case the pump and dump scheme is orchestrated by people urging buying Gamestop stock.

[Foxx]

2 minutes ago, DC Tom said:

 

In market jargon, that's a technical reason, not a fundamental reason.

Perhaps "fundamental" should have been stated as, 'fundamental'.

[Ann]

 

 

 

 

(I posted the "employee" before)

 

[Foxx]

3 minutes ago, GG1 said:

 

Just to be clear, in this case the pump and dump scheme is orchestrated by people urging buying Gamestop stock.

Yep. If you can't fix the system, you then have to beat them at their own game. 

 

Guerilla warfare.

[Foxx]

9 minutes ago, snafu said:

 

This play as you call it isn't sustainable.

In the end, hedge guys won't broadcast their moves so much.  They'll just make their evaluation and wait for the stock to drop.  And how many times are institutional protesters going to take it in the arse just to prove their point?

 

I'm not really trying to argue the semantics of what is happening. Just trying to point the reasons why it is happening.

[snafu]

11 minutes ago, Gary M said:

 

But the broadcast to drive the stocks down was their play, they can't help themselves.

 

I get that, but they'd need to either shut up a bit and rely on their analysis to be correct without the added hype; or not hold so much of the stock they short; or maybe (I don't know if this is possible being a complete neophyte*) try to get the time between borrowing the stock and having to pay it back extended.

 

But hey, I'm not here to tell hedge funds guys what to do.  They play the game just like everyone else.

 

*I literally had to look up what the hell was going on before I understood it.

 

Edited January 28, 2021 by snafu

[GG1]

1 minute ago, Foxx said:

Yep. If you can't fix the system, you then have to beat them at their own game. 

 

Guerilla warfare.

 

By hurting your supporters?   If the hedgies lost $14 bn in the day's events, that means the followers of the pump & dump stand to lose $10 billion.

 

Also, nobody likes the bucket shops who peddle the pump & dump schemes.  They're usually backed by the various mob cartels.  Most of them were run off the Street in the days of Stratton Oakmont.

 

Wall Street makes its money the old fashioned way, by skimming a fraction of % off every transaction.

[GG1]

1 minute ago, snafu said:

 

I get that, but they'd need to either shut up a bit and rely on their analysis to be correct without the added hype; or not hold so much of the stock they short; or maybe (I don't know if this is possible being a complete neophyte) try to get the time between borrowing the stock and having to pay it back extended.

 

But hey, I'm not here to tell hedge funds guys what to do.  They play the game just like everyone else.

 

 

It all depends on who they borrowed the stock from.  In a typical short squeeze whoever owns the physical shares, wants the shares back because the value is skyrocketing and you can profit from loaning the shares and selling into a bull market.

[Nouseforaname]

3 minutes ago, GG1 said:

 

By hurting your supporters?   If the hedgies lost $14 bn in the day's events, that means the followers of the pump & dump stand to lose $10 billion.

 

Also, nobody likes the bucket shops who peddle the pump & dump schemes.  They're usually backed by the various mob cartels.  Most of them were run off the Street in the days of Stratton Oakmont.

 

Wall Street makes its money the old fashioned way, by skimming a fraction of % off every transaction.

 

This reminds me of the BLM protests in which protestors (rioters) were burning down minority neighborhoods to get back for minorities that are oppressed...

[Gary M]

3 minutes ago, GG1 said:

 

By hurting your supporters?   If the hedgies lost $14 bn in the day's events, that means the followers of the pump & dump stand to lose $10 billion.

 

 

But the reddit guys bought in low, their loss is only on paper, while the hedgehogs loss was real cash.

[Nouseforaname]

2 minutes ago, Gary M said:

 

But the reddit guys bought in low, their loss is only on paper, while the hedgehogs loss was real cash.

 

Umm, what?