Last week's GameStop buyers feeling the burn

[calguy]

The hype from last week seems to have passed over the week end as both GME and AMC have been selling off since trading began in the pre market. GME alone is down 30%. Nothing brings traders back to reality like the sound of burning money. This was so predictable to experienced traders. The newbies are learning a hard lesson right now.

[Mike 03]

1. Bloomberg is reporting they moved on to silver.

Link to tweet

TEXT: Silver prices are soaring as Reddit’s band of retail traders attempts to squeeze the market.

There’s a rich history of corners and squeezes in the annals of commodity trading. But they don't often end well for the squeezers🧵1/12 #silversqueeze #silver

[calguy]

4. I heard that rumor too

I hope the reddit folks know what they're doing. Futures contracts is a whole different animal than stock trading because of the huge leverge.

[Hassin Bin Sober]

34. Oooh. I hope so. I'm sitting on a of silver I inherited at the high

[Decoy of Fenris]

46. No one involved in the GME squeeze is buying silver.

You're seeing a huge, well-coordinated and well-financed PR push from Hedgies to try to get GME retail traders to buy silver as if it's the 'next big thing' but the Reddit side was warned against this as early as Tuesday of last week; Citadel and a few other Hedgies bank heavy into the commodities, so buying those goes directly against the objectives of the Reddit WSB crews.

Lots of money and lots of social media pushing this narrative, but the GMEers aren't buying it. Tragically, some people not directly involved may buy in and end up getting burned because of it.

[intrepidity]

2. Are there restrictions on buying?

If people can only buy one share, but can sell unlimited, well, that affects the market.

[calguy]

5. The brokers had no choice

The clearing houses were demanding the brokerages like Robinhood put up more margin capital up front. In Robinhood's case, they would have had to put up around 3 billion dollars in order to process the trades.

[intrepidity]

6. I understand that

is it still the case, though?

[calguy]

12. Yes

[Miguelito Loveless]

3. And yet, hedge funds and Wall Street banks

do this all the time. This time the little guys burned the pros.

We need to ban shorting and any trading "instrument" that isn't about tngible, productive investing.

[calguy]

8. The little guys beat the pros "last week"

This week it is the pros' turn to make their money back. So many newbies stupidly got suckered into buying junk stock at prices 1000's of percent higher than they were worth. They willingly shelled out their cash and if they don't sell, they most likely loss 90% of their money. The pros are jumping at the opportunity to short a $10 stock at over $300.

[brooklynite]

10. What people didn't think about...

Yes, the Hedge Fund had to buy shares at an inflated price to cover their loans, but they don't have to buy YOURS....and they won't if you haven't put your shares up for sale at the moment they're buying.

[Drahthaardogs]

21. If everyone holds, this fails.

Just have to hold until the calls come in

[calguy]

28. The only problem is......

everyone is not going to hold.

[Drahthaardogs]

30. They will hold

Diamond hands are winning this

[calguy]

37. The chart tells a much different story

charts don't lie

[Drahthaardogs]

38. They do during a ladder attack

You keep pretending this is Econ101. This is all out war. Corruption vs corruption. You do you though.

[fishwax]

45. but the chart shows very little volume

Today is the slowest day since this started, so it's hard to buy that the mass sell-off has begun. It could still go up from here, if there are still a lot of shorts who haven't covered (and who are paying interest and face a lot of pressure to buy). Or, they could slowly bleed out their short position when the attacks drive the prices down ... but since they can't actually get out of their short position without buying there is still going to be some prices support at the lower end of those attacks. So it could very well stay in the 200-250 groove (with occasional swings above or below) for several more trading periods. It's pretty fascinating to watch, I think, and there's a great deal of speculation and guesswork on either side, wrt how much short exposure there is left to squeeze and how much stamina there is in the long position.

I also wouldn't bet heavily against this very real possibility: the "reddit rebellion" is, at this point, obscuring the fact that much more experienced and knowledgeable players have gotten in on the long game at this point (Ryan Cohen, who founded chewy.com, is the company's largest single investor), and so the noobs jumping on board when it soared to triple digits last week wouldn't really have much of an effect on the price anyway. How much would you be willing to bet on shorting gamestop at 250, knowing another spike could prompt a margin call and wipe you out? In the long term, there is no doubt in my mind that the price of this stock will go down. And it may, indeed, go down in the short term. But I don't think it would be a very safe thing to bet on.

It looks like the stock is falling towards close today, but still on pretty light volume. It will be interesting to see how the aftermarket plays out.

[Decoy of Fenris]

47. You're right, charts don't lie. And GME holders are holding strong.

Tiny amounts of volume difference, meaning WSB buyers are holding.

[Demsrule86]

40. Hedge Fund should not even be allowed. Bring back bucket laws. These folks contribute nothing.

[Happy Hoosier]

11. Anyone who bought the bubble....

deserves to get burned.

But I think Shorts are a financial disaster, and should be outlawed. They produce NOTHING. Get rid of them.

[Demsrule86]

41. I agree...

[Miguelito Loveless]

14. Absolutely true,

which is why shorting should be banned, and per share transaction taxes should be added.

The pros do have to worry about what stock will be targeted next for a short squeeze that could cost them billions. The "nuclear weapons of financial destruction" are now availble to everyone. What happens when next time it is a similar group orchestrated by the North Koreans, the Iranians, the Chinese or the Russians?

Disarm now, or face economic obliteration in the near future.

[calguy]

13. Shorting has been around since markets were created

Short selling is a valuable component of the market just like buying on margin is.

[Miguelito Loveless]

16. That's what everybody claims

and yet buying/shorting on borrowed money never ends well long term. Big shorts also have lots of reason to lie and rumor monger about the company they short, making it a self-fulfilling prophecy.

[calguy]

17. Shorting turns out very well if the price goes down

Just the same as buying turns out well if the price goes up. There's really no difference except that the trades bet on different directions.
This notion that short selling is somehow evil is just bullshit. If I correctly predict a stock is going to go down, why shouldn't I be able to trade it and make a profit from it?

[intrepidity]

22. There is a difference

one bets on failure, the other on success.

It is much, much, much easier to manipulate a failure than a success.

A parallel phenom is the difference in how Ds vs Rs govern: one seeks to build up government, while the other just destroys it. One takes years, the other just moments. They are not mirror images, nor flip sides of the coin.

Similar principle applies with short vs long positions in stocks.

False equivalencies should be exposed, not reinforced.

JMHO

[calguy]

25. Markets go up and they go down

It's always been that way and it always will. It has nothing to do with good and evil.
The scammers at Reddit have convinced a lot of novices that somehow buying a company for a thousand times more than it's worth is somehow a "cause" and not a stock trade. The Reddit pumpers have done exactly what the "evil" hedge funds have been accused of doing, except in reverse. They don't give a shit about some "cause". They give a shit about making a ton of money, and they were very successful. In a month or less the little guy will sitting there with his pockets picked wonder if it's still a "cause". The only thing he'll know for sure is he has a lot less money now than he did before he bought into the "cause".

[Miguelito Loveless]

29. There is a difference

short sellers are pulling for failure, and people to lose their jobs. They sell shares they don't own to profit from people's ruin. They also have a vested interested in helping spread bad things about the company, even lies. When I invest in a company, my money is going to support its operation, hire people and produce a product. Shorting does no such thing. It is profiting on people's misery, while doing all you can to bring about that misery.

There is NO ethical/moral argument for shorting stocks. I have heard lots of theoretical ones, but have not seen any in practice. Short-sellers are ghouls.

[Drahthaardogs]

20. When it's a collaboration to drive a business into bankruptcy

It should be illegal

[Demsrule86]

42. No it is not...and margin buying helped cause the 1929 crash.

[no_hypocrisy]

7. Margin calls can be painful

[brooklynite]

9. My BIL (a successful venture capital manager) bought into this...

...fortunately with money he can afford to lose.

[jmbar2]

15. Trading platforms like Etrade are swamped, overwhelmed

GME diving all morning --it's taking up to 30 mins to get sell orders filled. This will be a very painful lesson for a lot of newbie traders.

[Drahthaardogs]

18. You're Wrong. It's a Ladder Attack

It’s a collaborative attack by the hedge funds to drive the price down. As long as our Reddit followers hold, it cannot work.

Remember, all of this came about because abusive shorting by a collection of hedge finders was initiated to drive GME into bankruptcy.

This was orchestrated, manipulated,and executed. Reddit gave the little guys an opportunity to collaborate and stop the bullshit.

GME HAS value, and actually thanks to new gaming consuls had a decent 4th quarter. These fucks were already selling the carpet.

Has NOTHING to do with what you are talking about

[intrepidity]

23. and, I've read, some houses are forcing stop loss sales nt

[calguy]

26. In a month's time you'll find out how naive you are

[Hav]

31. Do you follow the Wallstreetbet forums on reddit?

I did it today for fun. They call themselves monkeys and degenerates, they admit they aren't experts and joke about their stupidity. That is kind of endearing but it feels a bit odd that one can see several of the same talking points from them repeated here. Not sure whether that's a good sign.
I guess we'll see how it turns out but it's hard to believe they'll go to the moon, as they say.

[calguy]

33. Newbies always search the chat rooms for "talking points"

Just like political chat rooms.
As far as will it go to the moon?
Yes, it already did last week. Now it's on the return trip back to earth. The easy money has already been made. The scammers who planned this pump have already cashed out and planning their celebration vacation trip to the Islands or are driving around in their new Mercedes.

[Drahthaardogs]

39. Hoping that in a month the light will be shone

On the predatory tactics of hedge funds and something will change.

Don’t you get it? That is what this is about.

[greenjar_01]

35. Oh boy

[fishwax]

19. there were even bigger drops on Thursday and Friday than today, though

and each day it bounced back. So far today there have been a couple of noticeable drops, but the volume has been pretty low, so there is still time for this to fight it's way back today. I'm not saying it won't drop eventually, of course, but I'm not convinced it's going to be today.

[LuckyCharms]

24. Broadbrush statement.

Short ladder attacks. Low volume attacks that can't last forever. These hedge funds have to pay fees until they cover. This stock swings $100 either way while you blink your eyes.

GME brick and mortars are going to be sold and they will enhance their digital platform long term (next 2 years). GME has value.

No one really knows the true short interest, and how much has already been BOT to cover. Don't underestimate the Redditors. Diamond Hands and all that. These people know how to take a stand and are strong enough to hold.

As far as AMC, I'm up 12% since the open.

[calguy]

27. Glad you are up 12% AMC since the open

Only down $3 right now since the opening print, or about 17% loss for anyone who bought at the open and held. Both AMC and GME have put in lower highs since the pump began. This is the pattern with pump 'n dump plays. You'll see a few pops higher as those who missed the initial spike "buy the dip", but as those folks get exhausted, the longs run out of new buyers and the price eventually returns to near the levels it was at before the pump play began.

[whttevrr]

43. I scalped a little $AMC today but it was a little stressful towards the end of my morning.

It was more 😬😬😬😬
Than 🚀🚀🚀🚀

[calguy]

44. Hope you're not in it anymore

It's about to go red.
I've tried to short it but there are no shares to borrow. I'm content to watch from the sidelines. I didn't lose a dime.

[whttevrr]

52. No, I'm trying to stay all cash right now.

[calguy]

56. Good job

[Vinca]

32. I read today somewhere that now they're going after silver prices.

I plan to keep an eye on it since I have a stash of scrap silver and will sell if it goes crazy. Guess the days are gone when people invested in the actual value of a company.

[Decoy of Fenris]

48. Don't buy into the silver propaganda.

Most of it is being pushed by the same hedge funds involved in GME; high silver gives them more capital to cover their GME shorts, so the Reddit brigade is staying out of it. Lots of self-serving market-manipulation propaganda from the Hedgies today, Silver included.

[Vinca]

50. I'm not investing in it. I go to yard sales and pick up bits and pieces here and there. If it's

not a maker or special piece worth keeping for resale, I usually sell it as scrap to a local jeweler. I can sell low or sell high after the Reddit people inflate the market.

[haele]

36. Don't think so, many of them actually intended to risk money to stick it to the hedge funds.

Spouse has been reading from the sub-reddit, there are still nerds who are pissed about ToysRus and other companies that were ruined by the hedge fund shorting them to make a profit.

They also don't appreciate that RobinHood is actually a data mining front for hedge funds, so the wolves can continue to feed off the small guys and day traders.

Haele

[Decoy of Fenris]

49. Are you new to trading? Seems like it, since the WSB crowd are holding steady.

The price is dipping due to hedgies short laddering, as any given basic report on the state of GME will show. Volume of trades is flatlined, WSB are holding strong, while shortsellers are doing what shorties do best; Prove they're the scum of the earth that will do anything it takes for money, in this case blatant market manipulation to save their worthless asses.

[calguy]

55. Sounds like a line right off a message board.

That sucking sound you here is your money going down the drain.

[Lady Freedom Returns]

51. Oh the drama!

What's going to happen next?

[Hav]

53. After-hours trading is brutal

Around 20% down since closing.

[calguy]

54. Rug pull time

Way under $200 now. AMC down a buck too.
Newbies learning how it feels to be played.

[RANDYWILDMAN]

57. They taught the lesson, not getting it...

Are you a supporter of banks and hedge funds ??

[calguy]

58. The market doesn't care one way or another

The fact is it appears everyone who wanted to buy into the "cause", already has. All buyers eventually become sellers and the price of the stock crashes, as you're seeing right now. The buyers are tapped out.