Stock market is a "fully-fledged epic bubble" and will burst
Discussion
Joey Deacon said:
btdk5 said:
ATM said:
The Rotrex Kid said:
ATM said:
Has everyone seen what's happened to Game Stop?
I bought in yesterday at $109. I nearly cashed out at $158 but hesitated 
Hoping that the Redditors keep holding and it goes up a bit today. Even if I lose a little I can live with it!!
There’s some posts on Reddit of people with 25,000+ shares so there is some serious money at stake here!
It’s a fascinating story, like a mini soap opera.
Melvin capital heavily shorted and have basically gone bust.
Have a look at blackberrys share price too.....
Buy up shares, the prices goes up, other people buy in forcing the price even higher and then cash out?
The price goes up due to nothing than manipulation, just like Crypto.
ferrisbueller said:
Have you read the story?
So a load of people on Reddit all agreed to buy GameStop shares and pushed the price up by 145% in a couple of hours?"The company has become a high-profile battleground between bullish chatroom-driven day traders, especially on online platform Reddit, and hedge fund short sellers, who have been betting against the stock."
"GameStop’s rally is one in a series of eye-catching market moves to stir concerns among fund managers, some of whom say trading by individual investors is pushing stock prices out of whack with fundamentals."
So essentially it was pumped by the Reddit group members to increase the price to force the hedge fund short sellers to lose money?
Am I missing something, essentially it was pumped and is not worth anywhere near the share price?
Joey Deacon said:
ferrisbueller said:
Have you read the story?
So a load of people on Reddit all agreed to buy GameStop shares and pushed the price up by 145% in a couple of hours?"The company has become a high-profile battleground between bullish chatroom-driven day traders, especially on online platform Reddit, and hedge fund short sellers, who have been betting against the stock."
"GameStop’s rally is one in a series of eye-catching market moves to stir concerns among fund managers, some of whom say trading by individual investors is pushing stock prices out of whack with fundamentals."
So essentially it was pumped by the Reddit group members to increase the price to force the hedge fund short sellers to lose money?
Am I missing something, essentially it was pumped and is not worth anywhere near the share price?
ferrisbueller said:
Joey Deacon said:
ferrisbueller said:
Have you read the story?
So a load of people on Reddit all agreed to buy GameStop shares and pushed the price up by 145% in a couple of hours?"The company has become a high-profile battleground between bullish chatroom-driven day traders, especially on online platform Reddit, and hedge fund short sellers, who have been betting against the stock."
"GameStop’s rally is one in a series of eye-catching market moves to stir concerns among fund managers, some of whom say trading by individual investors is pushing stock prices out of whack with fundamentals."
So essentially it was pumped by the Reddit group members to increase the price to force the hedge fund short sellers to lose money?
Am I missing something, essentially it was pumped and is not worth anywhere near the share price?
rockin said:
Joey Deacon said:
Buy up shares, .... The price goes up due to nothing than manipulation, just like Crypto.
Share price manipulation is illegal.Crypto is largely unregulated.
There's a huge difference.
The pump and dump used to be expensive, time consuming and inefficient but now you can mobilise $billions of flow sitting at Robinhood via some relatively cheap seeding in social media.
Joey Deacon said:
ferrisbueller said:
Joey Deacon said:
ferrisbueller said:
Have you read the story?
So a load of people on Reddit all agreed to buy GameStop shares and pushed the price up by 145% in a couple of hours?"The company has become a high-profile battleground between bullish chatroom-driven day traders, especially on online platform Reddit, and hedge fund short sellers, who have been betting against the stock."
"GameStop’s rally is one in a series of eye-catching market moves to stir concerns among fund managers, some of whom say trading by individual investors is pushing stock prices out of whack with fundamentals."
So essentially it was pumped by the Reddit group members to increase the price to force the hedge fund short sellers to lose money?
Am I missing something, essentially it was pumped and is not worth anywhere near the share price?
I'm not involved but based on what I've read there aren't enough shares in existence to close off the open shorts. Michael Burry is apparently invested and there are a number of other serious investors onboard. The games being played out are fascinating (to me at least) and the numbers involved are significant. It also exposes the degree of f
kery that goes on.ferrisbueller said:
Joey Deacon said:
ferrisbueller said:
Joey Deacon said:
ferrisbueller said:
Have you read the story?
So a load of people on Reddit all agreed to buy GameStop shares and pushed the price up by 145% in a couple of hours?"The company has become a high-profile battleground between bullish chatroom-driven day traders, especially on online platform Reddit, and hedge fund short sellers, who have been betting against the stock."
"GameStop’s rally is one in a series of eye-catching market moves to stir concerns among fund managers, some of whom say trading by individual investors is pushing stock prices out of whack with fundamentals."
So essentially it was pumped by the Reddit group members to increase the price to force the hedge fund short sellers to lose money?
Am I missing something, essentially it was pumped and is not worth anywhere near the share price?
I'm not involved but based on what I've read there aren't enough shares in existence to close off the open shorts. Michael Burry is apparently invested and there are a number of other serious investors onboard. The games being played out are fascinating (to me at least) and the numbers involved are significant. It also exposes the degree of f
kery that goes on.ATM said:
The Rotrex Kid said:
btdk5 said:
Just use IG?
It’s a fascinating story, like a mini soap opera.
Melvin capital heavily shorted and have basically gone bust.
Have a look at blackberrys share price too.....
I have bought via Revolut. Dead simple and very fast. It’s amazing seeing people holding $11m+ of this stock on Reddit. Brass balls!It’s a fascinating story, like a mini soap opera.
Melvin capital heavily shorted and have basically gone bust.
Have a look at blackberrys share price too.....
Are those options?
Installing their app now.
ferrisbueller said:
https://www.bloomberg.com/news/articles/2021-01-25...
I'm not involved but based on what I've read there aren't enough shares in existence to close off the open shorts. Michael Burry is apparently invested and there are a number of other serious investors onboard. The games being played out are fascinating (to me at least) and the numbers involved are significant. It also exposes the degree of fkery that goes on.
Your link doesn't work. I'm not involved but based on what I've read there aren't enough shares in existence to close off the open shorts. Michael Burry is apparently invested and there are a number of other serious investors onboard. The games being played out are fascinating (to me at least) and the numbers involved are significant. It also exposes the degree of f
kery that goes on.I'll have to do some reading as I fail to understand how there can be more short positions open than shares available. By the very nature of shorting a stock, you "borrow" a share, sell it, and then buy it back later. You pay a fee to borrow the share from the owner, and hence I struggle to see how you can have more shorts than shares.
Condi said:
ATM said:
The Rotrex Kid said:
btdk5 said:
Just use IG?
It’s a fascinating story, like a mini soap opera.
Melvin capital heavily shorted and have basically gone bust.
Have a look at blackberrys share price too.....
I have bought via Revolut. Dead simple and very fast. It’s amazing seeing people holding $11m+ of this stock on Reddit. Brass balls!It’s a fascinating story, like a mini soap opera.
Melvin capital heavily shorted and have basically gone bust.
Have a look at blackberrys share price too.....
Are those options?
Installing their app now.
I thought it was The Rotrex Kid position on Revolut
Joey Deacon said:
ferrisbueller said:
Joey Deacon said:
ferrisbueller said:
Have you read the story?
So a load of people on Reddit all agreed to buy GameStop shares and pushed the price up by 145% in a couple of hours?"The company has become a high-profile battleground between bullish chatroom-driven day traders, especially on online platform Reddit, and hedge fund short sellers, who have been betting against the stock."
"GameStop’s rally is one in a series of eye-catching market moves to stir concerns among fund managers, some of whom say trading by individual investors is pushing stock prices out of whack with fundamentals."
So essentially it was pumped by the Reddit group members to increase the price to force the hedge fund short sellers to lose money?
Am I missing something, essentially it was pumped and is not worth anywhere near the share price?
Condi said:
Your link doesn't work.
I'll have to do some reading as I fail to understand how there can be more short positions open than shares available. By the very nature of shorting a stock, you "borrow" a share, sell it, and then buy it back later. You pay a fee to borrow the share from the owner, and hence I struggle to see how you can have more shorts than shares.
Apologies https://www.bloomberg.com/news/articles/2021-01-25...I'll have to do some reading as I fail to understand how there can be more short positions open than shares available. By the very nature of shorting a stock, you "borrow" a share, sell it, and then buy it back later. You pay a fee to borrow the share from the owner, and hence I struggle to see how you can have more shorts than shares.
I need to read more. There's a lot about it I'm trying to understand and an awful lot to read. It may be that the open shorts exceed the shares not held by insiders and this has been labelled incorrectly? I shall do more digging.
Also talk of naked shorts, which I thought was illegal?
ETA. https://www.reddit.com/r/wallstreetbets/comments/k...
This post talks about shorts as % free float. It then refers to institutions owning 110% of GME
https://www.nasdaq.com/market-activity/stocks/gme/...
Edited by ferrisbueller on Tuesday 26th January 16:22
vulture1 said:
Clearly those that have pumped the price have fond memories of actually buying games and consoles from gamestop. The y didnt want to see a short fund cause the share price to drop even more so all bought into it to chase them out. That is how I read it.
And yet, the odd truth is that markets don't make or lose money - people do. So while it might be great that a few Reddit posters have made a lot of money, that money has come from other people who have lost theirs. There is a post on there from some bloke who bought at $158. I've no idea how much he invested, but he's over 30% down right now and there is no logical reason it will ever go back to where he can get out B/E.The idea that all this money is being made from wealthy hedge funds which are short is plainly wrong.
Condi said:
vulture1 said:
Clearly those that have pumped the price have fond memories of actually buying games and consoles from gamestop. The y didnt want to see a short fund cause the share price to drop even more so all bought into it to chase them out. That is how I read it.
And yet, the odd truth is that markets don't make or lose money - people do. So while it might be great that a few Reddit posters have made a lot of money, that money has come from other people who have lost theirs. There is a post on there from some bloke who bought at $158. I've no idea how much he invested, but he's over 30% down right now and there is no logical reason it will ever go back to where he can get out B/E.The idea that all this money is being made from wealthy hedge funds which are short is plainly wrong.
If an asset class like an equity - which has for simplicity no short positions - goes up, then the people who own the shares make money. No one directly loses money. It is only if someone is short they lose. Now suggesting an SP500 share has no short positions is a bit impossible, right. You could argue that the whole SP500 index rises if one share rises. There could well be short positions against the index too.
But if you think of a simple little AIM listed share / penny stock then its easier to imagine no short positions.
ferrisbueller said:
Also talk of naked shorts, which I thought was illegal?
A Naked Call is a thing.Thats where you sell calls.
Not illegal.
https://www.investopedia.com/terms/n/nakedcall.asp
ATM said:
This is incorrect.
It really isn't.... The market, by definition, cannot "make" money. Between everyone's entry and exit there has to be an equilibrium. Of course, everyone can make a paper profit, but as Kenny Rodgers famously said - "don't count your chips while you're sitting at the table".
ferrisbueller said:
Also talk of naked shorts, which I thought was illegal?
Not sure, in commodities short selling uncovered positions is very common - very few will be hedged necessarily - but I'm not sure if shares work in the same way. In theory its perfectly possible. ATM said:
ferrisbueller said:
Also talk of naked shorts, which I thought was illegal?
A Naked Call is a thing.Thats where you sell calls.
Not illegal.
https://www.investopedia.com/terms/n/nakedcall.asp
ATM said:
Gamestop touched 250 after hours.
Elon musk tweeted a link to the reddit page so that’s going to send a hoard of mindless ‘investors’ buying in. Have a read of the story when Elon tweeted use signal, referring to a messaging app, people blindly bought into signal advance, some penny stock tech firm sending its share price up 6350% in 3 days.
Gassing Station | Finance | Top of Page | What's New | My Stuff