The Investment Thread (18 Viewers)

[El Caliente]

Might want to clear that strategy with accounting to make sure that would reflect in earnings. Basic research says it would not.

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leapfin.com

I thought about that as well. We shall see what becomes of that plan. It’s similar to the silver play that they are kicking around to kill JPM. It doesn’t make sense, but somehow it makes sense to them.

 

[El Caliente]

I'm trying to understand your point, but I'm missing it, can you explain it directly? What is it that you think is happening, how is it sustaining, and what is the outcome?

I think you think that people just talking realistically about how stock shares are valued and traded are somehow doing the work of the institutions and supporting 'status quo' and I'd like to better understand why you think that.

The sentiment shared by those on WSB is that the media is working with The Street, and the media is saying that the shorts are dead so perhaps now is a good time to consider taking profits. It’s easy to understand why investors and those siding with WSB are skeptical. Shorts are far from dead, and hedge funds have far from learned their lessons on shorting.

If we want to see change on The Street (from regulations to trading policies) WSB has to win this one. There is no other way.

 

[superchuck500]

I have a couple of coworkers who realize that due to their 30 day restriction they won’t get out in time, so for them making a monster return on GME was secondary, their primary goal was to see how far this will go.

Right now there is a push from many different media outlets (and in the sub) to sell off now. Nobody dedicated to the cause is selling their position as who would that benefit? Who benefits from these folks selling their positions? Sure take back what you put in, but if you have made millions over the initial investment, and money wasn’t the end game then don’t sell, otherwise you are serving the people you are trying to crush.

I can understand if someone already booked a large gain (millions in your example) and wanted to hold remaining shares to prop up the hedge squeeze. That's reasonably sensible to me. What isn't, however, is having a large gain on paper but holding it, to be eventually wiped out based on some premise of sticking it to some hedge funders who got over-exposed.

 

[superchuck500]

The sentiment shared by those on WSB is that the media is working with The Street, and the media is saying that the shorts are dead so perhaps now is a good time to consider taking profits. It’s easy to understand why investors and those siding with WSB are skeptical. Shorts are far from dead, and hedge funds have far from learned their lessons on shorting.

If we want to see change on The Street (from regulations to trading policies) WSB has to win this one. There is no other way.

Who cares what "the media" says? They never understood it in the first place, so what value is their opinion?

 

[El Caliente]

I can understand if someone already booked a large gain (millions in your example) and wanted to hold remaining shares to prop up the hedge squeeze. That's reasonable sensible to me. What isn't, however, is having a large gain on paper but holding it, to be eventually wiped out based on some premise of sticking it to some hedge funders who got over-exposed.

Bane was a man before he saw the light, and by then it was blinding. The folks involved in the GME/AMC/BB play don’t care about unrealized losses like you and I might, but by and large the majority of these folks are the down trodden, they would rather see this as a victory in a battle of class warfare, than take the money and run. It’s commendable.

 

[SaintInBucLand]

The sentiment shared by those on WSB is that the media is working with The Street, and the media is saying that the shorts are dead so perhaps now is a good time to consider taking profits. It’s easy to understand why investors and those siding with WSB are skeptical. Shorts are far from dead, and hedge funds have far from learned their lessons on shorting.

If we want to see change on The Street (from regulations to trading policies) WSB has to win this one. There is no other way.

Hopefully this leads to legislation regarding shorts. The way these hedge funds are doing it, shorting is not just about losses, it's about the destruction of jobs and lives.

 

[El Caliente]

Who cares what "the media" says? They never understood it in the first place, so what value is their opinion?

Many of the Johnny Come Lately type who recently joined in on the WSB investment didn’t know about it until their friend or family told them about it, and they headed to CNBC, Fox Business, Yahoo Finance. Etc, to give them some sort of confirmation that this was a good/bad investment. So for many, the media was the push they needed to get them into the investment, and the media is banking on their voices being the ones to get folks out of this investment.

 

[El Caliente]

The brokers are already pleading to be regulated - though I'm sure they want to limit that to 'retail investor' activity.

Did you watch Vlad on CNN the other day?

Companies should have a rule that the CEO should Never, Ever, Ever be allowed to speak on tv. Lol. Between he and Tom with Interactive Brokers, this should be understood by the Wall St types. Oh well.

That said, gone are the days of commission free trading. Free ain’t free.

 

[Chris]

Many of the Johnny Come Lately type who recently joined in on the WSB investment didn’t know about it until their friend or family told them about it, and they headed to CNBC, Fox Business, Yahoo Finance. Etc, to give them some sort of confirmation that this was a good/bad investment. So for many, the media was the push they needed to get them into the investment, and the media is banking on their voices being the ones to get folks out of this investment.

I saw a comment from someone proudly saying they blew 2 months worth of rent money on GME, and his very next sentence was something like "I sure hope they send out that stimulus check soon". While this whole thing is a valiant effort to "stick it to the man", a bunch of naive *individuals* will be left bag holding and (ironically) begging for government handouts.

 

[El Caliente]

I saw a comment from someone proudly saying they blew 2 months worth of rent money on GME, and his very next sentence was something like "I sure hope they send out that stimulus check soon". While this whole thing is a valiant effort to "stick it to the man", a bunch of naive *individuals* will be left bag holding and (ironically) begging for government handouts.

I don’t disagree with this at all. The build up in this greater fool experiment will go down right next to Tulip Mania. Several high profile individuals have already exited, so by and large you are looking at a lot of common man holders. It’s going to suck for whoever is left to turn out the lights. In the meantime. They are going to brake a lot of hedge funds, and make the entire industry uncomfortable.

 

[Tapxe]

I saw a comment from someone proudly saying they blew 2 months worth of rent money on GME, and his very next sentence was something like "I sure hope they send out that stimulus check soon". While this whole thing is a valiant effort to "stick it to the man", a bunch of naive *individuals* will be left bag holding and (ironically) begging for government handouts.

I seem to recall having to bail out Wall St and getting nothing for it not too long ago. If the virus wasn't so badly mishandled, then this might not be happening. Yet, here we are.

 

[superchuck500]

Many of the Johnny Come Lately type who recently joined in on the WSB investment didn’t know about it until their friend or family told them about it, and they headed to CNBC, Fox Business, Yahoo Finance. Etc, to give them some sort of confirmation that this was a good/bad investment. So for many, the media was the push they needed to get them into the investment, and the media is banking on their voices being the ones to get folks out of this investment.

If they needed the media to tell them whether it was a “good/bad investment”, that suggests to me that they’re in it for the financial investment and not the more egalitarian “investment” in an effort to bring about more democratic change to US markets, yes? I don’t think many people not involved with WSB even get that angle (I didn’t really realize it until you explained it, I thought it was just to make money off of catching some hedge funds in a highly exposed position - a classic short squeeze for the purpose of making money).

But if that’s the case and they (the ones who got the info from the media) really are in it as a financial interest, then we’re back to the idea that hold, particularly past this immediate episode, is probably losing money.

 

[EGLSShin]

If anything, the pandemic is making many normal folks to finally come to the realization that they're just the grease that keeps the machine churning.

 

[El Caliente]

If they needed the media to tell them whether it was a “good/bad investment”, that suggests to me that they’re in it for the financial investment and not the more egalitarian “investment” in an effort to bring about more democratic change to US markets, yes? I don’t think many people not involved with WSB even get that angle (I didn’t really realize it until you explained it, I thought it was just to make money off of catching some hedge funds in a highly exposed position - a classic short squeeze for the purpose of making money).

But if that’s the case and they (the ones who got the info from the media) really are in it as a financial interest, then we’re back to the idea that hold, particularly past this immediate episode, is probably losing money.

This week I have taken more calls from friends and family regarding “what is going on in the market?” And “what are options, and are they a good investment?” than I have in the last 5 years. I don’t know a great deal about stocks and bonds as I work in commodity trading, but the fact that folks are asking me these questions is very revealing about people’s interest in entering the market on this one play, and how just a small amount of confirmation bias is all it will take for them to swing one way or the other on this play.

While there is a good number of these folks joining in lately (based of varying levels of confidence), they don’t make up the larger composite. The new investors are in for the money, however it’s the majority of folks in on this play who have been in on it for a while (hence the swell in pps prior to this week), who want to bring about change. The media’s part in this is to carry the water for funds, and help shake the trees and get folks off their positions.

In the case of WSB, while technicals are relevant, depending solely on technicals has gone out the window, and have been replaced with “I like the stock.” It makes no sense.

 

[El Caliente]

If anything, the pandemic is making many normal folks to finally come to the realization that they're just the grease that keeps the machine churning.

Yes, so apparently last year 400,000 new unique accounts were created on RH last year alone. This pandemic has brought to a hault to most casinos and sports betting, and folks needed something to throw that money at.

I believe in this past week, one of the beautiful things all the gorgeous memes have shined a light on is just how the system is fixed, and how class warfare isn’t just some myth. Folks are finally seeing how this movie is playing out, and they would rather be Sheriff Brody or Hooper, rather than Quint.