Game Stop Stock, GME
 

Under $20 on Jan 11. Pushing $350 as of a few minutes ago.

Someone please explain this to me.

https://www.marketwatch.com/investing/stock/gme?mod=watchlist_ticker

The Duke Brothers were betting that the stock would go down. Louis, Ray, and Ophelia got all of their friends to buy buy BUY. As the price went up the Dukes went further into the hole and eventually lost their seat on the exchange.

I'd like to sell, sell, SELL, but that seems like a risky proposition.

some thing like when porsche almost bought VW but got eaten and owned

short selling is selling a stock you do NOT have in hopes of getting it cheaper later

Hedge fund bet it will go down. 130% (!) of stock is shorted. Reddit got wind of this. Someone called Reddit crowd "autists", "living in moms basements" etc.

Redditors started buying this in pure spite. Short squeeze happened, which meant price went up even further. So Redditors actually started making money.

If I owned any and the price went to 350 I would sell sell SELL.

Don't want to be the last one holding that bag! It's retail market manipulation instead of the big boys doing it.

This is why I stopped buying/selling individual stocks years ago. None of this has anything to do with company performance. Way over my aging head

Express is on a run.

In the end the Porsche family ended up with 51% of VW so they have controlling interest in VW, and all the subsidiary companies. Bottom line they won.

Great reference....love that movie!!:D

and BTW...the same thing is happening with AMC Theaters stock, though their run up has a tiny bit to do with their CEO announcing they would not file for bankruptcy, but still going crazy.

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What’s going on now is very entertaining.

Some hedge funds and traders are jumping in to join the Reddit/WSB action on the long side. Others are liquidating (or hedging) their shorts which forces them to liquidate (or hedge) their longs. Traders are picking through lists of the stocks most owned long by hedge funds and shorting them, just as others are picking through lists of the stocks shorted by hedge funds and going long them. It’s a dogpile, and fun to watch.

Does it really matter? I have my doubts. First, the stocks that are getting targeted are small, there’s not a lot of market cap being whipped around. Second, this can all get shut down in a second: the dealers can jack up options premia by 5-10X which will choke off the action, the exchanges can halt trading so that options expire worthless, the brokers can raise margin requirements and restrict accounts, the SEC can make any and all of that happen, and the traders who get caught out will have no recourse. The IRS is going to come in for its pound of flesh. And trading with the intent of manipulating stock prices is illegal, not that the SEC will go after thousands of Robinhooders but there are some prominent ringleaders who could be taken out.

My best guess is that when/if this starts threatening the stability or functioning of the market, it will be crushed. No-one really cares if Melvin Capital or other small hedge funds who haven’t been diligent with their risk control go bust, or if a bunch of daytraders give up their profits.

I’ve been checking my portfolio names against lists of hedge funds top longs and shorts, and checking r/WSB for mentions of those names. It’s wasting my time, basically, but nothing more.

Last comment: being very exposed on the short side to a stock that has high short interest is stupid, and every experienced market participant knows it’s stupid. High short interest is actually a “positive” factor in my stock screens (ideally high and starting to decline). No sympathy for the guy who got caught short GME or AMC. If he’s at a hedge fund, he will probably get fired. Most genuine long/short funds will not tolerate a fast drawdown of several percent, they’ll pull capital or terminate the manager in a blink. Those funds are all about risk control. At the same time, no sympathy for the “regular Joe” who loses his retirement savings or the money he needs for his mortgage or college tuition by being a day late to the game. If you can’t take the heat, stay out of the . . .

Amazing.
http://forums.pelicanparts.com/uploa...1611768654.jpg

KOSS is up 200% today and was as high as +300%. I need to get on that Reddit board and gamble a few K. ;)

Thank you!! :D

What's amazing is that if that person is still holding, the stock is up over $330 right now

Short Squeeze.

If I had bought in at $20 or $50 or $100, I'd absolutely be out at $330. Hell, I'd have probably been out at $250 or maybe $200. Being greedy is a good way to loose what you've got.

But then I'm just not a gambler.

^ This.

When you have 3 million individuals in the retail market trading in unison, that is no longer individuals - it acts like a firm or corporation. <-- my opinion.

Market manipulation in most cases is illegal. Just because the "casino market" is difficult to regulate, that does not make it legal.

-Z

I got in at $84 yesterday.

It’s great that Wall Street can manipulate the market for years, but they minute they lose they cry about how unfair everything is.

I guess my question would be, is a bunch of people all getting together and saying "we are going to buy every share we can of this stock" considered manipulation?

Now, shorting the stock and then putting out hit pieces, I get that...but a bunch of people all doing the same thing at the same time doesn't feel like manipulation to me.:confused:

From Investopedia:
What's going on with GME, AMC, and the rest sure sounds a lot like market manipulation to me...

market manipulation is very much legal, and happens all the time.

this

I guess I just see it differently. A bunch of people buying a stock wouldn't be my definition of "manipulation". If they were all going out and only buying product at Gamestops, or putting out articles with fake earnings, then ya. But just all purchasing stock at once? Seems hard to prove doing something because you saw other people on the internet doing it is manipulation.

OK, so what happens if wall street decides to put them in their place? They could crash it all and make money on the recovery, they don't care.
It's their game, don't wake the sleeping tiger.

The guy counting cards at the casino usually doesn't care how the casino will react.

For now, it's fun to root for that guy.

This was them putting wall street in their place as I understand it. They perceived WS shorting the stock (manipulating the value) and negated the effect with mass individual purchases.

And it is quite funny to hear the hedge funds all crying unfair to practices they perfected and engage in with impunity.

http://forums.pelicanparts.com/uploa...1611790990.jpg

It is easy to prove if people are publicly stating they are buying to manipulate the market. What is there left to prove in that?

Hedge fund managers went after anyone they could at Porsche, I'd expect them to have lawyers combing public info and finding those participating with the intent of market manipulation.

Certainly an interesting situation for sure.

I bought a few hundred AMC shares after hours cheap. Hoping for --B I G-- things tomorrow !

Epic battle shaping up for tomorrow when the market opens, many can't trade in AH/PM, so opening bell will be wild.

Jim Cramer called out all the WS pros that were whining. The hedgefunders driving around in their Lamborghinis got spanked. Calling the WSB Redditors a "greed hive".

Hate to tell you: Wall Street is the definition of 'greed hive'

Where is anyone publicly stating they are buying to manipulate the market? Have you looked at the subreddit? A ton of people telling everyone to buy, a ton of people posting screenshots of their purchases, a ton of people telling everyone to stick it to the man, ...is any of this market manipulation?

How is this any different than Cramer recommending a stock to his millions of followers? or Elon tweeting "I like etsy" and their stock rockets up?

Telling people to buy a stock or stating that you bought a stock isn't market manipulation.

Surprised no one has mentioned the king of all of this, u/deepf**kingvalue. A guy who has been on the GME train for like 18 months, with real DD (he seems to be an analyst full time...or WAS lol). He has been telling people how it could be a 5 or 10 bagger when it was $4, with a chance for a squeeze, I dont think he even saw this coming, but he did call his finish as January 2021. So far his calls and leaps have taken him from starting with $53k to $48mm as of today and he is still in.

Exchanges and brokers starting to shut this down. Some brokers imposing “closing transactions only” in some expiries, meaning trader can only close out an existing options position, can’t open a new one.

No one is discussing that SEC and brokers allowed hedge funds to short 139% of the floating shares in company that was struggling but had no loans? And now there is a big scramble to save poor hedge fund...

It is currently +4% in Germany. Things like this happen only once in the blue moon. Dotcom crash, 2008 crash, algo flash crash, VW short squeeze. And now this...

According to what I can read on net, GME is still heavily (>100% shorted). Shorters will need to cover if GME stock remains artificially propped up . Enter combined gamma squeeze and short squeeze. Perfect storm.

There is a risk that hedge funds will (or already are) sell their other long positions to cover short bets in GME, which might bring whole marked down...market which is already in stratosphere compared to fundamentals.