OT: Game Stop | Page 15 | Syracusefan.com

OT: Game Stop

Fat tire 13 said:
Portnoy tweeted this morning he sold everything for a $700k loss. Of course he blames everything on Robin Hood. He doesn't mention that if RH didn't block all those buy orders at $300 people would have lost more money...

For him, it is entertainment and he can afford this loss. Wonder if his loyal disciples will feel the same way
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The suits lost a lot last week.
The public turned against Wall Street big time.
Once they saw it’s basically a casino to launder money to their benefit the anti-regulation crowd turned.

I always said keep Warren regulation out of Wall Street now I hope she destroys them.

They lost a lot of support to keep the status quo.

That is why RH is done. They lost customers last week. The brand is garbage now.
 
I
Alsacs said:
The suits lost a lot last week.
The public turned against Wall Street big time.
Once they saw it’s basically a casino to launder money to their benefit the anti-regulation crowd turned.

I always said keep Warren regulation out of Wall Street now I hope she destroys them.

They lost a lot of support to keep the status quo.

That is why RH is done. They lost customers last week. The brand is garbage now.
Expand...
IMO only baby bears got slaughtered last week. Other institutions saw the squeeze and had no problem joining the fray to punish the shorts that were trying to stick around. Once they all covered en masse last week/yesterday all the whale bidders dumped leaving retail to scream "hold the line" still today. I almost never do fundamental research because fundamentals aren't gonna change in 10 minutes, tutes trade the same way. Wherever the juice is. Spy having a bad day? Guess where all the juice is, small caps that have laid dormant for years. Small caps hurting tomorrow? Juice rotates back into tech, or financials, or whatever it maybe. The synchronized rotations though keep the SPX and indices up up up.
 
Todoubled23 said:
I
IMO only baby bears got slaughtered last week. Other institutions saw the squeeze and had no problem joining the fray to punish the shorts that were trying to stick around. Once they all covered en masse last week/yesterday all the whale bidders dumped leaving retail to scream "hold the line" still today. I almost never do fundamental research because fundamentals aren't gonna change in 10 minutes, tutes trade the same way. Wherever the juice is. Spy having a bad day? Guess where all the juice is, small caps that have laid dormant for years. Small caps hurting tomorrow? Juice rotates back into tech, or financials, or whatever it maybe. The synchronized rotations though keep the SPX and indices up up up.
Expand...
I dumped my GME on Friday.

I still have AMC I bought it at 4 and change though.

Robin Hood’s brand is done.
They will survive but they lost a lot of business.

Again as I said I hope Warren passes Glass-Steagall on steroids now.
They won’t get people like me who say stop her anymore.

Wall Street screwed up last week. The hedge funds made enemies out of regular people.
That won’t work long term.
 
Alsacs said:
I dumped my GME on Friday.

I still have AMC I bought it at 4 and change though.

Robin Hood’s brand is done.
They will survive but they lost a lot of business.

Again as I said I hope Warren passes Glass-Steagall on steroids now.
They won’t get people like me who say stop her anymore.

Wall Street screwed up last week. The hedge funds made enemies out of regular people.
That won’t work long term.
Expand...
I hear ya,
Alsacs said:
I dumped my GME on Friday.

I still have AMC I bought it at 4 and change though.

Robin Hood’s brand is done.
They will survive but they lost a lot of business.

Again as I said I hope Warren passes Glass-Steagall on steroids now.
They won’t get people like me who say stop her anymore.

Wall Street screwed up last week. The hedge funds made enemies out of regular people.
That won’t work long term.
Expand...

I get the anger from retail, but I still dont think its anything super nefarious or wrong. It all comes down to liquidity and robinhood among many other brokers were in a dangerous spot.

Short sales were HEAVILY restricted in '08 when markets were in a tailspin, but I've yet to see anyone mention that.

Chinese markets did the same thing after the covid crash. No short sales whatsoever, and limiting how much capital people could pull out.
 
Todoubled23 said:
I hear ya,

I get the anger from retail, but I still dont think its anything super nefarious or wrong. It all comes down to liquidity and robinhood among many other brokers were in a dangerous spot.

Short sales were HEAVILY restricted in '08 when markets were in a tailspin, but I've yet to see anyone mention that.

Chinese markets did the same thing after the covid crash. No short sales whatsoever, and limiting how much capital people could pull out.
Expand...
Well I guess I need the SEC to investigate Robin Hood and the hedge funds to believe it.

I don’t believe RH.
 
Alsacs said:
The suits lost a lot last week.
The public turned against Wall Street big time.
Once they saw it’s basically a casino to launder money to their benefit the anti-regulation crowd turned.

I always said keep Warren regulation out of Wall Street now I hope she destroys them.

They lost a lot of support to keep the status quo.

That is why RH is done. They lost customers last week. The brand is garbage now.
Expand...
I think the situation is a little more complicated than that. When it first unfolded, I very much believed there were shady forces at work (Stevie/Melvin/Citidel) blocking people from buying.

Then digging deeper into volatility and the credit that needed to be posted to the clearinghouses, it made me realize there were more logical explanations. The fact that RH's CEO could not articulate the problem made it sound worse than it was in practice.

Edit - adding a couple things on RH. They did raise $3.4 billion last week and had 600K downloads on Friday. I see people talking about leaving, but need to see some evidence

Say GME and the other meme stocks give back all the gains. Who loses, who is to blame? Portnoy is still blaming RH. Let's be clear though. RH blocking those buy orders actually kept people from buying the top, and the restriction was for one day. I don't know if that narrative will hold for the long term.

Portnoy sold everything this morning, and then tweeted about it. He front ran his disciplines. That's only a minor point. Portnoy does an excellent job trash talking, and took Stevie Cohen down. He very much connects with the regular person and points out hypocrisy when he sees it. However, he is also promoting behavior that is financially unhealthy (reckless day trading). He can scream all he wants about the system being rigged. In the end, if you are a person who pissed away a bunch of money in the market, you have to decide what you learned from the experience. And the world moves quickly. That anger may be channeled to something else than the hedge funds.

The fact is there are all sorts of relationships within Wall Street that are less than moral, and borderline illegal. I'm just not convinced this was the moment that changes things

What may happen? More restrictions on short selling, and more circuit breakers for single stock volatility. That is my best guess, and even lean towards no new regulations.

There are 1000s of hedge funds. If 1-2 blow up because of GME, they are a minor blip in a long history of hedge funds blowing up
 
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Nobody came out of this looking good. Robin Hood. Hedge funds that short 140% of the float of a stock. And stock message board types that appealed to retail investors greed by encouraging them to pay outrageous prices for a dog eared stock (GME) that should trade at fractions of what they paid for it. Just to stick it to the man. You can't make this sheet up.

The pandemic has created a lot more retail investors as they day trade and speculate on crazy stocks like GME and AMC. AMC's bank debt trades at 80 cents on the dollar yet it had a market equity cap of $6 billion a few days ago. That's nuts. This type of behavior is usually indicative of a near term market top. At some point the FED is going to have to stop with the fire hose of new money as it's just encouraging crazy speculation.
 
bpo57 said:
Nobody came out of this looking good. Robin Hood. Hedge funds that short 140% of the float of a stock. And stock message board types that appealed to retail investors greed by encouraging them to pay outrageous prices for a dog eared stock (GME) that should trade at fractions of what they paid for it. Just to stick it to the man. You can't make this sheet up.

The pandemic has created a lot more retail investors as they day trade and speculate on crazy stocks like GME and AMC. AMC's bank debt trades at 80 cents on the dollar yet it had a market equity cap of $6 billion a few days ago. That's nuts. This type of behavior is usually indicative of a near term market top. At some point the FED is going to have to stop with the fire hose of new money as it's just encouraging crazy speculation.
Expand...
yep, theres been unlimited liquidity, anywhere but bonds. They cycle and rotate through sectors and it all adds up for now for SPY to keep right on going up so long as interest rates stay here. The cash seeks out anything at all even zombie companies because there is no other game in town.
 
bpo57 said:
Nobody came out of this looking good. Robin Hood. Hedge funds that short 140% of the float of a stock. And stock message board types that appealed to retail investors greed by encouraging them to pay outrageous prices for a dog eared stock (GME) that should trade at fractions of what they paid for it. Just to stick it to the man. You can't make this sheet up.

The pandemic has created a lot more retail investors as they day trade and speculate on crazy stocks like GME and AMC. AMC's bank debt trades at 80 cents on the dollar yet it had a market equity cap of $6 billion a few days ago. That's nuts. This type of behavior is usually indicative of a near term market top. At some point the FED is going to have to stop with the fire hose of new money as it's just encouraging crazy speculation.
Expand...

Just curious, how long have you been paying attention to reddit's ties to retail investors?
 
did the hedge funds, and big money, really lose on this?

yes, a couple of hedge funds lost big, but ultimately, the common guy (with their own money) helped raise the value of the company to $21B, up from $1.3B, and I keep wondering if a lot of hedge funds/big money are the ones who got the money out of the stock since they are likely more sophisticated and know all the ways to filter out money better than a common retail person would


this might be a bad analogy, but it's kind of like me (who has little clue about poker) joining a poker game with a bunch of professionals halfway through it. yes, i could probably dump a ton of money on the table and squeeze a few people out, but likely, some professional is going to swoop up all my money by the end of the game.
 
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mscanlo said:
did the hedge funds, and big money, really lose on this?

yes, a couple of hedge funds lost big, but ultimately, the common guy (with their own money) helped raise the value of the company to $21B, up from $1.3B, and I keep wondering if a lot of hedge funds/big money are the ones who got the money out of the stock since they are likely more sophisticated and know all the ways to filter out money better than a common retail person would


this might be a bad analogy, but it's kind of like me (who has little clue about poker) joining a poker game with a bunch of professionals halfway through it. yes, i could probably dump a ton of money on the table and squeeze a few people out, but likely, some professional is going to swoop up all my money by the end of the game.
Expand...

The truth is you would be better off putting your money into an S&P ETF over the past 25 years than you would a Hedge Fund.
 
mscanlo said:
did the hedge funds, and big money, really lose on this?

yes, a couple of hedge funds lost big, but ultimately, the common guy (with their own money) helped raise the value of the company to $21B, up from $1.3B, and I keep wondering if a lot of hedge funds/big money are the ones who got the money out of the stock since they are likely more sophisticated and know all the ways to filter out money better than a common retail person would


this might be a bad analogy, but it's kind of like me (who has little clue about poker) joining a poker game with a bunch of professionals halfway through it. yes, i could probably dump a ton of money on the table and squeeze a few people out, but likely, some professional is going to swoop up all my money by the end of the game.
Expand...
BlackRock reportedly made 2.4B alone on GME with a 13% stake. Who knows what the big banks made scalping this both ways.

Poker comparison is spot on. Too many tried to leapfrog the basics, can definitely get lucky. But unfortunately hitting it big as your introduction to trading can be the thing you look back on and say "wish that never happened" cause you're expectations and wanting to chase that feeling will take you out much faster.
 
Cusefan0307 said:
The truth is you would be better off putting your money into an S&P ETF over the past 25 years than you would a Hedge Fund.
Expand...
yeah, i know. wasn't my argument. Heck, Peter Lynch will even say a 2nd grader can beat them over the long run in selecting stocks. I just meant that they have more experience pulling money out quickly than a common person does. I remember getting into complex instruments during school, and it hurt my head, and I was decent in school.
 
mscanlo said:
did the hedge funds, and big money, really lose on this?

yes, a couple of hedge funds lost big, but ultimately, the common guy (with their own money) helped raise the value of the company to $21B, up from $1.3B, and I keep wondering if a lot of hedge funds/big money are the ones who got the money out of the stock since they are likely more sophisticated and know all the ways to filter out money better than a common retail person would


this might be a bad analogy, but it's kind of like me (who has little clue about poker) joining a poker game with a bunch of professionals halfway through it. yes, i could probably dump a ton of money on the table and squeeze a few people out, but likely, some professional is going to swoop up all my money by the end of the game.
Expand...

Mudrick Capital made $200 million by selling out of the money calls on AMC and GME.
 
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