Has anybody been following the GameStop trading drama?
I do not understand it 100%, but it appears like a social media crowdfunding sort of campaign has made the stock skyrocket and the Wall Street “experts” are losing money.
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Ive followed it a little…a hedge fund manager said the stock was a good short candidate and fanboys and amateur investors on Reddit got together and decided to buy it up to squeeze the shorts. Some hedge funds are literally having to raise capital because they’re getting so squeezed but ironically the manager who made the original comments is neither long nor short on Game Stop.
I read where the top 3 shareholders have made billions over last few days. I thought about shorting a little bit myself to join the fun but my TD app crashed all morning so I didn’t, probably just as well. The next stock being targeted by the Reddit crowd is AMC Theaters it sounds like, it’s up over 100% today.
Correction, AMC is up 400% today. I swear if these fuckers end this bull market I’m going to write a strongly worded letter!
Wall Street was betting the stock would drop.
A bunch of people are pushing the stock up which causes Wall Street to lose their bet.
It’s hysterical in a weird way.
They’re doing it to AMC now
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I don’t know if my son is in on the Reddit thing but he’s up 300% on AMC.
I just sold half mine. I’ll see where it goes
I think it is hilarious and it may be really good for the country/economy.
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Supposedly hedge funds are going to lose billions.
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There may be some short term pain, but it will severely curtail the shorting of stocks.
It will hopefully turn Wall Street back to its original purpose, investing, not gambling.
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Normally the hedge funds do it. Why I don’t mind them getting screwed
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The effect can be more than hedge funds. If funds have to sell other holdings to cover their shorts, that selling pressure could drive the entire market down. As I write this, the market is down about 2% today.
It just illustrates that most short term market moves are driven as much or more by psychology than corporate fundamentals.
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Its pretty crazy and risky. The users that are driving up the price to squeeze the short sellers are still buying a stock that is certainly over valued. If you are in these stocks you better get in and get out quickly. Holding for any period of time is a good way to lose big money.
What would be crazy is if the crowd holds the stock long enough to get the “short sellers” out of the market and then lets it come down softly.
That’s the idea the trolls are attempting.
As to your earlier point, there’s virtually no chance hedge funds will abandon shorting. Those corrupt pieces of crap are addicted to manipulating the market & taking advantage of it, and violating virtually all of the laws – at least their intent – governing investing.
More likely they will get something codified into law – or worse, have the SEC unilaterally decree – prohibiting mere mortal citizens (i.e. non Wall St people) from sharing information over the internet on investing.
The owners of this country don’t have to follow the rules.
They are already trying that NASDAQ is monitoring Social Media and says they will shut down trading if they see it being manipulated.
The funny thing is, I would never have even known about this but I follow some of my kids friends on Twitter and they are posting about it.
Give credit where due, this generation may be causing some “creative destruction”.
The people doing this appear to be older.
Normally I would be against it but this is a special case. Hedge funds have billions of dollars to manipulate the market. That isn’t really a fair trade.
I find the Twitter comments funny.
“oh no the wrong people are manipulating the stock market”
“Everyone freaks out when poor people put money in the stock market as opposed to losing value in savings.”
“That’s the nature of the stock market. The wrong people always manipulate it!”
“A day trader actually had the nerve to say “if you want to gamble go to a casino!!” Lol.”
"But who are the ‘right’ people to manipulate the stock market?!?!?!?
And that is just from one thread.
Exactly. Hedges funds go do it because they have billions of dollars.
High frequency trading works off pennies for profits.
It’s time to stop this crap
Is silver next?
I haven’t found a legitimate source, but it looks like NASDAQ did temporarily shut down trading.