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Thanks Sanchez. Appreciated.
Individual investors are being stripped of their ability to trade on Robinhood app
and hedge funds and institutional investors can continue to trade as normal.
Yes there will be a bit of a pyramid effect where the last ones out will lose big
The real take-away here may be that these small punters still think they are 'sticking it to the man'...whereas they may be just unwittingly betting against eachother at this point, and potentially bag-holding.
yes ... but with a price 10x 2 weeks ago and 20x 4 weeks ago, an awful lot of late punters stand to look their shirts.
One up against the hedge shorters, but the cost to 'real people' will be high
More amateur traders I was referring to there. Seems like a bit of a mug's game, full stop, anyway.
I look forward to someone in the know explaining how this '140%' is able to be...
I thought only the use of derivatives (options) is public knowledge....is it the case that we never really know how many actual shares are sold short?
My feel is that there is not enough attention given to the methods of the institutional players and whether they are operating within the law. It's frustrating to only really see the one example so far (Melvin Capital)...surely there are more who have been caught short, as it were.
Wouldn't touch shorting and advanced share buying tactics with a bargepole. It's a wise man who knows his limitations, and I have limitations.
Moral here: Stick to what you know or prepare to get hammered.
I absolutely enjoy seeing the ****ters, sorry I mean shorters, getting utterly smashed in the US. If you agree recommend Sanchez post.
The predator became the prey on wall street
How the hell can you short 140%, the instruments available are bonkers, they just keep finding new tos to make money with but this time they got burnt.
A theme for the last 12 month would perhaps be that old rules and norms do not apply, just look at the whinging bears on wall street as the market and major market participants (fed) has not done what they expected, now the little guys are fecking up their plans as well.
#Bearstoo or should that be #Bearstew
There was no where near the level of shorting when it was paper certificates either. The issue seems to be than in hours a company can be tanked online whereas that would have taken weeks and a lot of luck in the old days.
I do accept that if you can 'bet' long, you should be able to bet short, but I rather think there must come a time when limits are placed - the market is just getting distorted out of all shape
Hi Biffy Boy, have a look at what has happened to the GameStop /AMC /BB/Nok share prices look at the Reddit forum r/wallstreetbets, #stonks on Twitter and read the article above.
Basically a redditor tracked down hedge funds with obscene short positions and suggested other redditors work together to buy up their stock. This garnered a lot of attention and other investors quickly joined in. The hedge fund who was shorting GameStop was part of a short position that equated to an absurd 139% of the shares in issue.
When redditors started buying it pushed the price up and subsequently forced the shorts to close in a rising market pushing prices up further - the fund with the largest exposure has now filed for bankruptcy when their losses exceeded the entire valuation of the fund.
The 'bad words' element refers to the efforts to shut the forum down over some obscure Icelandic swear words. It's all in the articles. Wall Street don't like it because they don't like it when other people realise they can use their own tactics against them.
Even Elon Musk got on board... and by the looks of it nearly every 18 year old with Christmas money in America.
It is all over social media. Have a look.
Sanchez hi. Could you please explain in Lehman’s terms what’s going on regarding this “bad words” topic. Any info would be gladly received. Cheers.
I hope no one is now in any doubt as to how rigged this deck is now.
The MM's manage to get the price down by nearly 25% to hit mid 18's the day before tax return sales must be made, alongside the fact we know they sold short on the recent rise, despite recent commodity price rises, proximity to Eskom news and the fact that it could not be more clear that sentiment for this company is hugely bullish.
Sure.
Thanks for those who have recommended. Be confident that your peers think the same as you.
vauch - are you suggesting that all long term shareholders should ask for their share certificates to the be made out to them ?
I wonder what impact that would have.
As long as there is a God in the heavens, there's always gonna be stoopid!
Don't underestimate the ability of some to snatch defeat from the jaws of victory.
Interesting article
https://www.ft.com/content/4f76d769-4460-450f-9373-1e54f7da6c19
They do however seem to have met with some success Alfa - as the SP is demonstrating...
Over 100 likes for your post Sanchez - obviously there is very strong holding here.
The problem is that the Market Makers have misjudged our ability to understand the company and so instead of having a bunch of brainless trading muppets they can rinse and repeat shares from they instead have those who stoically sit back and say 'do your worst' and 'thank you very much for the cheap shares'.
This makes their problem worse because shares - they have none. So what we need is for some muppets to sell their shares now, preferably those who have gambled with leveraged bets on spreadbet platforms - geniuses that they are they will have save the 20% capital gains tax on the losses that they will make today.
Over 100 likes for your post Sanchez - obviously there is very strong holding here.
The problem is that the Market Makers have misjudged our ability to understand the company and so instead of having a bunch of brainless trading muppets they can rinse and repeat shares from they instead have those who stoically sit back and say 'do your worst' and 'thank you very much for the cheap shares'.
This makes their problem worse because shares - they have none. So what we need is for some muppets to sell their shares now, preferably those who have gambled with leveraged bets on spreadbet platforms - geniuses that they are they will have save the 20% capital gains tax on the losses that they will make today.
Booms are comeing
Banning shorting will never happen.
This issue was never a problem when all stock purchased was in cert format.
Now they bunch loads of purchases together and fu== with our shares
Just ban shorting, problem solved.
There are many shares like this that are materially undervalued. It is about time PI's clubbed together and stopped shares being shorted, drifting after news and being walked down for a placement. Maybe the tables are about to turn.