so who's buying GameStop, AMC and BlackBerry tomorrow morning?

[tobijohn]

FWIW, back in my gun slinging days, I'd be shorting silver right here. As it is, I sold some call spreads in GLD this afternoon. A pretty tight stop loss though, a couple dollars the other way and I'm out...

[peskypesky]

but if a hedge fund got caught using a fake account to manipulate retail investors, the SEC would come down on them like a hammer.

[BatUtilityBelt]

I quit managing my own trades after I started picking really good IPOs but was too small to actually get in on them. My instinct is that these are a flash in the pan that will not do well for most people jumping in this late, but if you do, that's great.

[Chocol8]

but if a hedge fund got caught using a fake account to manipulate retail investors, the SEC would come down on them like a hammer.

You laugh, but you might want to research Gary Gensler’s track record. If hedge fund managers were posting on WSB, they will get prosecuted and they know that.

[peskypesky]

but if a hedge fund got caught using a fake account to manipulate retail investors, the SEC would come down on them like a hammer.

You laugh, but you might want to research Gary Gensler’s track record. If hedge fund managers were posting on WSB, they will get prosecuted and they know that.

Do a Google seach for "hedge fund fined". You'll quickly see that hedge funds are regularly doing stuff that gets "prosecuted". Sure doesn't seem to stop them. Sort of like how drug dealers still keep selling drugs despite the war on drugs.

As someone just wrote in regard to the market manipulation by hedge funds:
"When the only consequence is a fine that is a TINY fraction of what they'll make, then it's worth it to break the law for them."

[peskypesky]

Ah you were gonna lose $15b so you manipulated the market?
Anyways, here's a fine for $24m.


"When the fine is less than the profits then it's not really a fine or a punishment.. it's just a cost of doing business.."

[peskypesky]

Mark Cuban did a Q&A this morning with the WSB Redditors and he basically said the squeeze was a brilliant idea...but that RobinHood (and other brokers) f-ed up the squeeze by cutting off the buying.

He said there's still a chance it will work as RobinHood and other brokers start to open up buying of GameStop stocks...but the squeeze lost major momentum. And this allowed the hedge funds to pull out their bag of tricks to lower the stock price from it's highs of last week.

Cuban's advice to holders of GameStop:
"So what to do ?

If you can afford to hold the stock, you hold. I don't own it, but that's what i would do.

Why? Because when RH and the other online brokers open it back up to buyers, then we will see what WSB is really made of. That is when you get to make it all work.

I have no doubt that there are funds and big players that have shorted this stock again thinking they are smarter than everyone on WSB.

I know you are going to hate to hear this, but the lower it goes, the more powerful WSB can be stepping up to buy the stock again. The only question is what broker do you use?"

[tobijohn]

...The only question is what broker do you use?"

IMHO:

https://tastyworks.com/

You can also trade cryptocurrencies through them as well (if that blows up your skirt)...

[Chocol8]

Mark Cuban did a Q&A this morning with the WSB Redditors and he basically said the squeeze was a brilliant idea...but that RobinHood (and other brokers) f-ed up the squeeze by cutting off the buying.

He said there's still a chance it will work as RobinHood and other brokers start to open up buying of GameStop stocks...but the squeeze lost major momentum. And this allowed the hedge funds to pull out their bag of tricks to lower the stock price from it's highs of last week.

Cuban's advice to holders of GameStop:
"So what to do ?

If you can afford to hold the stock, you hold. I don't own it, but that's what i would do.

Why? Because when RH and the other online brokers open it back up to buyers, then we will see what WSB is really made of. That is when you get to make it all work.

I have no doubt that there are funds and big players that have shorted this stock again thinking they are smarter than everyone on WSB.

I know you are going to hate to hear this, but the lower it goes, the more powerful WSB can be stepping up to buy the stock again. The only question is what broker do you use?"

The pump is done even with restrictions lifted. You can only keep a worthless stock at $300+ for so long, and at some point a lot of people are going to lose a lot of money, much of it is likely to end up in the hands of the same hedge funds that were losers last week. In the end fundamentals matter, and GME is a fundamentally flawed business that can barely justify a $20 stock price.

Don’t play that game. There are better ways to blow your money than to donate it to hedge funds and Wall Street pros.

[AnotherJim]

The market is way over inflated. It is not being driven on logic but emotion from the looks of it. A lot of companies are laying off as COVID has expedited work from home initiatives and decentralized where people work. Expect a significant Commercial Real Estate bubble within a year corporations buy out of and dont renew leases. Between these issues and the continuing COVID saga, I would expect a significant drop.

[Chocol8]

The market is way over inflated. It is not being driven on logic but emotion from the looks of it. A lot of companies are laying off as COVID has expedited work from home initiatives and decentralized where people work. Expect a significant Commercial Real Estate bubble within a year corporations buy out of and dont renew leases. Between these issues and the continuing COVID saga, I would expect a significant drop.

Well those are the negatives, the market prices are high because of the expected fiscal policies of the new White House and Congress, and the anticipation that there will be significant inflation pressure created by deficit spending. It’s a situation where you could lose big by simply not being in the market.

The key is picking the right investments that will out pace inflation and avoid the dogs. I agree with your assessment of commercial real estate. Some sectors like urban offices are going to be in trouble for a long time. I wouldn’t touch retail either except at a deep discount. OTOH, there are a number of equities that I expect will perform well, even in a challenging economy.

[uwmcscott]

IMHO:

https://tastyworks.com/

You can also trade cryptocurrencies through them as well (if that blows up your skirt)...

I noticed that my Vanguard account also appears to have the ability to buy/sell trades for no fee, would that be equivalent to something like this? I had a Datek account way back in the late 90's when you got charged for every transaction, but since I've almost stritlyl invested in either index funds or through my employer options like 403b, etc.

[tobijohn]

I noticed that my Vanguard account also appears to have the ability to buy/sell trades for no fee, would that be equivalent to something like this? I had a Datek account way back in the late 90's when you got charged for every transaction, but since I've almost stritlyl invested in either index funds or through my employer options like 403b, etc.

Most of the big online brokerage firms no longer charge for stock trades but they still charge for stock options and commodity futures transactions...

[peskypesky]

Most of the big online brokerage firms no longer charge for stock trades but they still charge for stock options and commodity futures transactions...

Yeah, I was shocked to discover that Etrade no longer charges for trades. I have an account with them...but hadn't actively used it in about 6-7 years. r

[uwmcscott]

I noticed that my Vanguard account also appears to have the ability to buy/sell trades for no fee, would that be equivalent to something like this? I had a Datek account way back in the late 90's when you got charged for every transaction, but since I've almost stritlyl invested in either index funds or through my employer options like 403b, etc.

Most of the big online brokerage firms no longer charge for stock trades but they still charge for stock options and commodity futures transactions...

Can you use your Roth IRA contribution to purchase stock, or does a Roth have to be in a specific type of account specified by the brokerge/investment company? For example, I've got a roth IRA accouint at Vanguard which is in an Index 500 fund.

Also, how in the hell do you make any sense out of buying selling indiviudal stocks these days? Is it actually possible for an individual investor to do it without spending a ridiculous amount of time on reseach?

[Chocol8]

You can buy whatever you want with an IRA, Roth or otherwise, as long as the broker you use allows it. Through TD Ameritrade, I can buy funds, individual stocks, bonds, and options. Basically the same as I can with my non-IRA account.

Picking individual stocks is hard and usually takes work. The main exception is if you know a company because you are a customer or supplier or something along those lines. For example, If you bought a newfangled sprocket from a relatively unknown upstart Spacely’s and you notice that it is better than the competition and their customer service is better too, you might consider buying a few shares.

[glasshand]

Cuban's advice to holders of GameStop:
"So what to do ?

If you can afford to hold the stock, you hold. I don't own it, but that's what i would do.

Why? Because when RH and the other online brokers open it back up to buyers, then we will see what WSB is really made of. That is when you get to make it all work.

I have no doubt that there are funds and big players that have shorted this stock again thinking they are smarter than everyone on WSB.

I know you are going to hate to hear this, but the lower it goes, the more powerful WSB can be stepping up to buy the stock again. The only question is what broker do you use?"

So now that we're about a week out...how's that working out for everyone? Since then the stock has lost about half its value and looks like it's returning to the general trend it had for the previous year minus late January. If you're a long-term fundamentals kind of investor, sure, hold onto it, but that's not really what he was talking about, and given that Robinhood removed trading restrictions on GME back on the 4th and it's continued to behave like a balloon leaking air...

[mozz]

Like I said, once you read the article on Yahoo or Fox or wherever, it is too late and you are now the sucker they were looking for.

[tobijohn]

Like I said, once you read the article on Yahoo or Fox or wherever, it is too late and you are now the sucker they were looking for.

There's an old expression: "Buy the rumor, sell the news." When I see a particular financial topic mentioned in the main stream press, it's time to go in the opposite direction...

[mozz]

That's true in more ways than one. I don't know if I read it here or somewhere else, Robinhood and the likes of make money when you buy and sell. They make it so easy. If the market goes up or down does not really matter, when you buy or sell they take a small cut.

That being said, I am up now 193% since I joined in Sept. When you get a few thousand $ in there you start to get scared. Narrowed down all the stocks I was buying and only have 4 currently but so far so good.

[tobijohn]

That's true in more ways than one. I don't know if I read it here or somewhere else, Robinhood and the likes of make money when you buy and sell. They make it so easy. If the market goes up or down does not really matter, when you buy or sell they take a small cut.

That being said, I am up now 193% since I joined in Sept. When you get a few thousand $ in there you start to get scared. Narrowed down all the stocks I was buying and only have 4 currently but so far so good.

Robinhood and other online brokerage firms that offer commission free stock trading do not take the other side of your trade, instead they make their money on stock transactions by selling their order flow to the many high frequency trading firms,. This actually results in better order execution for the retail customer than the old specialist system ever did...

[peskypesky]

Like I said, once you read the article on Yahoo or Fox or wherever, it is too late and you are now the sucker they were looking for.

Yep. This guy could see the short squeeze was already over by Feb. 1.

https://www.thestreet.com/mishtalk/econ ... ueeze-over

It might have lasted a bit longer if RH and other brokerages hadn't stopped retail traders from buying shares...but it wasn't going to last for long when you're playing against the big boys.

[Chocol8]

The short squeeze was over on January 26th when the original shorts had covered. Everything after that was the result of momentum and media coverage.

[peskypesky]

The short squeeze was over on January 26th when the original shorts had covered. Everything after that was the result of momentum and media coverage.

Short interest is still very high. 78% today.

[Chocol8]

The short squeeze was over on January 26th when the original shorts had covered. Everything after that was the result of momentum and media coverage.

Short interest is still very high. 78% today.

That’s not the same hedge funds, not at the same prices, different time horizons, different abilities to cover margin etc.

The original positions that allowed the short squeeze to happen were covered on Tuesday the 26th. The massive jump in price invited other well funded short sellers to jump in at much more profitable values.