The Investment Thread (11 Viewers)

[Turfie]

Each of these topics belong next to one another. NAKD, like SNDL, like silver, like RKT, and this week, like SOS, were all blatant hedge fund pump and dumps used mainly to get people off of their AMC and GME positions.

These delays come at a cost though, as the more naked shorting hedge funds do to keep these prices artificially down for cosmetic purposes, the more people buy those naked shares, leading to retail investors in particular owning more shares that the actual float that exists (in AMC's case, it's reported at 90% owned by retail, but that does not factor in synthetic shares)

GME retails owns >90% float as well. I have positions in both and hope they both pop. I’m also prepared for a continuance of shorts.

I have attached a picture from Europe that I can’t stop laughing at. This truly is a Global event.

 

[Turfie]

So the Money Makers execute buy orders via dark pools (so the stock price doesnt go up) and execute sells on open market (which causes the stock price to go down). Plus millions of borrowed shorts on the open market. What’s crazy is the majority of this is legal for now.

 

[St. Geezy]

So the Money Makers execute buy orders via dark pools (so the stock price doesnt go up) and execute sells on open market (which causes the stock price to go down). Plus millions of borrowed shorts on the open market. What’s crazy is the majority of this is legal for now.

Yep...and I think we are slowly learning that this is not something unique.

Ever notice that 9 times out of 10, the supposed "hot stocks" typically go the opposite direction? I think hedge funds have been pumping and dumping stocks on us for years using this methodology.

This is a good read I found on the subject. They have been ripping off us "Dumb Money" retail investors for years. The only difference is now, due to DFV/Roaring Kitty's epiphany last year, we have figured out how to beat them at their own game by merely always holding rather than panic selling like many have traditionally done...

Citadel Securities has captured that retail trading market by generous payments for order flow to at least nine online brokers. (See our report: Citadel Is Paying for Order Flow from Nine OnLine Brokerage Firms – Not Just Robinhood.) There is growing concern among lawmakers that Citadel Securities’ motivation in paying for this order flow is to be able to trade against unsophisticated retail traders, known as “dumb money” on Wall Street, in order to unfairly enhance its own bottom line.

The disciplinary history of Citadel Securities, unfortunately, aligns with that thesis.

On June 25, 2014, Citadel Securities was fined a total of $800,000 by its various regulators for serious trading misconduct. Citadel paid the fines in the typical manner, without admitting or denying the charges. The New York Stock Exchange alleged that the following had occurred:

“The firm sent multiple, periodic bursts of order messages, at 10,000 orders per second, to the exchanges. This excessive messaging activity, which involved hundreds of thousands of orders for more than 19 million shares, occurred two to three times per day.”

In addition, according to the York Stock Exchange, Citadel “erroneously sold short, on a proprietary basis, 2.75 million shares of an entity causing the share price of the entity to fall by 77 percent during an eleven-minute period.” In another instance, according to the New York Stock Exchange, Citadel’s trading resulted in “an immediate increase in the price of the security of 132 percent.”

On January 9, 2014, the New York Stock Exchange charged Citadel Securities LLC with engaging in wash sales 502,243 times using its computer algorithms. A wash sale is where the buyer and the seller are the same entity and no change in beneficial ownership occurs. (Wash sales are illegal because they can manipulate stock prices up or down.) Citadel Securities paid a $115,000 fine for these 502,243 violations and walked away. That’s less than 23 cents per violation.

On January 13, 2017 the SEC settled a case against Citadel Securities for $22.6 million in fines and disgorgements, alleging the following had occurred:

“…two algorithms used by Citadel Securities did not internalize retail orders at the best price observed nor sought to obtain the best price in the marketplace. These algorithms were triggered when they identified differences in the best prices on market feeds, comparing the SIP feeds to the direct feeds from exchanges. One strategy, known as FastFill, immediately internalized an order at a price that was not the best price for the order that Citadel Securities observed. The other strategy, known as SmartProvide, routed an order to the market that was not priced to obtain immediately the best price that Citadel Securities observed.”

Is Citadel’s Hedge Fund a Harmless $35 Billion Minnow or a $235 Billion Killer Shark?

By Pam Martens and Russ Martens: February 23, 2021 ~ At the end of last Thursday’s 4-hour long hearing on the forces behind the wild trading in shares of

wallstreetonparade.com

I honestly think we are in the midst of the secrets of the matrix being exposed. Something much larger is in play right now, particularly in the world of naked, synthetic short shares. It's formed an artificial market bubble that is about to pop and crash the market.

In fact, I think many of the shares we currently own of stocks like AMC, GME, and many others, are synthetic. Think about it - in order to naked short, you have to have buyers. There will literally be brokerages having to buy actual shares once these squeeze events begin. I think this is a big reason why the buy halts happened in late January, because they saw the ****storm brewing.

 

[Turfie]

According to I borrow desk. 510,000 shares of GME were just borrowed to short at 7:12am.

2,000,000 ETFs that contain GME were also borrowed to short this morning. I’m sure AMC will be similar in proportion.

 

[itztime]

According to I borrow desk. 510,000 shares of GME were just borrowed to short at 7:12am.

2,000,000 ETFs that contain GME were also borrowed to short this morning. I’m sure AMC will be similar in proportion.

Yep they both dipped and I bought more AMC with that dip.

 

[Turfie]

This was funny after another red day.

 

[saintmdterps]

Almost all the exchanges have high fees.

Has anyone made money off XRP? The price has tripled the past week or so. I'm sitting on a few. Had an issue with a large transaction before it went up and it failed. Lost out on a few hundred $... meh.

I don’t have XRP because it was delisted from coinbase due to SEC issues. Currently I have ETH, XLM, ADA, and BAT. All have done well over the last couple months.

 

[Kegger]

I'd like to get in on DOT, but binance.us doesn't have it listed (yet). It feels like it could get pretty high adoption.

 

[Snakehead]

I'd like to get in on DOT, but binance.us doesn't have it listed (yet). It feels like it could get pretty high adoption.

Coinbase does not have it either.

Speaking of Coinbase, I thought their IPO was supposed to release today.

 

[Kegger]

Coinbase does not have it either.

Speaking of Coinbase, I thought their IPO was supposed to release today.

Sounds like the IPO is tomorrow: https://investorplace.com/2021/04/coinbase-ipo-can-coin-stock-really-hit-600-after-its-april-14-ipo/

 

[Snakehead]

Sounds like the IPO is tomorrow: https://investorplace.com/2021/04/coinbase-ipo-can-coin-stock-really-hit-600-after-its-april-14-ipo/

Sure is, I've been thinking today was the 14th.

 

[J-Donk]

Sounds like the IPO is tomorrow: https://investorplace.com/2021/04/coinbase-ipo-can-coin-stock-really-hit-600-after-its-april-14-ipo/

I used to buy weed with bitcoins back when it was less then 10 dollars. Yes, I spent them all. I used coinbase a decent amount once bitcoin became more mainstream. I remember them as nothing more then an exchange. Does an exchange really have that high of an evaluation?

 

[Kegger]

I used to buy weed with bitcoins back when it was less then 10 dollars. Yes, I spent them all. I used coinbase a decent amount once bitcoin became more mainstream. I remember them as nothing more then an exchange. Does an exchange really have that high of an evaluation?

They get a cut of every transaction (some of their fees are % based too).

What's the saying? If there's a gold rush, sell shovels?

 

[Snakehead]

I used to buy weed with bitcoins back when it was less then 10 dollars. Yes, I spent them all. I used coinbase a decent amount once bitcoin became more mainstream. I remember them as nothing more then an exchange. Does an exchange really have that high of an evaluation?

That's some expensive weed.

 

[jrdbrn]

I don’t have XRP because it was delisted from coinbase due to SEC issues. Currently I have ETH, XLM, ADA, and BAT. All have done well over the last couple months.

I'm sitting on a nice pile of XRP now. Hopefully it goes to the moon. I've made quite a bit of money so far.