Stock market tips and experiences

[2000cs]

Originally Posted by bimmer pleaser V2

I'd really appreciate some answers on these:

1. Mathematically, how is possible to short 140% of anything? If I have 100$, how can someone borrow 140$ of it?
   
   
2. I am assuming the short positions can be extended (indefinitely?), and this is how the shorters have been dragging this on? And there are fees/interest paid to the share lenders until the position is closed?
   
   
3. Why do Hedge Funds get cash infusion from their peer? Aren't they competitors?

1. The amount of shares outstanding is not the same as the number of shares traded in a day/week/year. If I buy all of the shares of a company this morning and sell them this afternoon, there were buys of 200% of the shares and sells of 200% of that stock today, assuming there were no other transactions other than mine. So it is possible to buy and sell multiples of the outstanding shares, or of the float (another topic).

2. Short positions can be extended indefinitely, in theory. In practice the short has to pay interest on the funds/shares borrowed, and may have mark-to-market calls (when you short at $100 and the price moves to $110, you could have to put up the $10 as collateral to your broker). More typically a short will close out one position and enter into another. Short positions also can be hedged with options. Note the term “hedged” which may explain to a large degree what a hedge fund is and how it is different from a mutual fund.

3. Hedge funds can get cash from any investor. It is common for funds to invest in other funds for a variety of reasons. Banks, brokers and others invest in hedge funds, and some hedge funds are public so you can buy shares directly. High net worth individuals can invest directly into some hedge funds as well, like they do with limited partnerships and other investment vehicles. Hedge funds do compete with each other for capital and sometimes on investments, but they cooperate at times as well, especially where the competitive dynamic is weak (e.g., a hedge fund focused on battery tech might take investment from a broader hedge fund that lacks battery expertise).

[P1]

Originally Posted by TheFanatic

You guys hear about HCMC yet? Huge amount of chatter and watches waiting for open

An 18,000 sq ft warehouse with eight vape shops that’s suing PM? Take my money!

[TheFanatic]

Originally Posted by P1

An 18,000 sq ft warehouse with eight vape shops that’s suing PM? Take my money!

It's more than doubled already since fridays close. The copyright lawsuit looks like a solid case from what the reports are saying. Rumors are they also plan to buy and retire a bunch of their stocks once the lawsuit is won, that will only skyrocket the price and getting in now while it's dirt cheap will lead to huge gains

[vreihen16]

Pigs get slaughtered.....

[MKSixer]

I try to keep things simple.

Buy low, sell high. Immediately move all accrued assets to H and B, LLC.

I'll show myself out now.

[antzcrashing]

Originally Posted by vreihen16

Pigs get slaughtered.....

Be more specific

[TboneS54]

Pigs are greedy. I wouldn't call GME holders pigs. We just like the stock.

[Noneya]

Originally Posted by bimmer pleaser V2

I'd really appreciate some answers on these:

1. Mathematically, how is possible to short 140% of anything? If I have 100$, how can someone borrow 140$ of it?
   
   
2. I am assuming the short positions can be extended (indefinitely?), and this is how the shorters have been dragging this on? And there are fees/interest paid to the share lenders until the position is closed?
   
   
3. Why do Hedge Funds get cash infusion from their peer? Aren't they competitors?

1. Suppose there is only 1 stock that A owns. B borrows it from A and sells it to C. D then borrows it from C and sells to A. Now A has 2 stocks, B has -1, C has 1, and D has -1. The total is still 1, but 200% is shorted and 300% is long. Similar things happen with cash by the way. If you have $100 and deposit it in a bank, the bank could then lend $90 (due to Fed requirements they can't lend 100% of it) to another person, thus increasing the total amount of money that people have to $190.

2. Yes and yes.

3. It's just an investment like any other. If you think someone has a profitable position that they just can't maintain due to capital issues, you can make a deal with them to lend them capital and get a percentage of the future profits.

[bimmer pleaser V2]

Originally Posted by vreihen16

Pigs get slaughtered.....

Still alive and kicking, oink oink.

[vreihen16]

Originally Posted by antzcrashing

Be more specific

Originally Posted by TboneS54

Pigs are greedy. I wouldn't call GME holders pigs. We just like the stock.

I was referring to HCMC mentioned above, which is a sub-penny stock. The only piece of trading advice that a friend who has a seat on the market will offer anyone who asks is that pigs get slaughtered for messing around in the pink sheets and penny stocks.

Regarding GME, I'm starting to think that we are all being played for suckers by the institutional investors and hedge funds the past few days. There has been a pattern of a spike after opening turning into a crater about an hour later before leveling off for the rest of the day. Today's $100+ fall between 9:38 AM and 10:26 AM surely made a tidy profit for whoever was on the short train. Last Thursday's crater was over $300 in two hours, and Friday had a similar $100+ drop albeit after lunch when the backed-up RH buys from Thursday were finally made.....

[BMW F22]

Originally Posted by vreihen16

I was referring to HCMC mentioned above, which is a sub-penny stock. The only piece of trading advice that a friend who has a seat on the market will offer anyone who asks is that pigs get slaughtered for messing around in the pink sheets and penny stocks.

Regarding GME, I'm starting to think that we are all being played for suckers by the institutional investors and hedge funds the past few days. There has been a pattern of a spike after opening turning into a crater about an hour later before leveling off for the rest of the day. Today's $100+ fall between 9:38 AM and 10:26 AM surely made a tidy profit for whoever was on the short train. Last Thursday's crater was over $300 in two hours, and Friday had a similar $100+ drop albeit after lunch when the backed-up RH buys from Thursday were finally made.....

+1 something seems a bit off. Corps aside, retail investors could double dip by shorting and holding out at the same time.

[Cyberdemon]

Originally Posted by BMW F22

+1 something seems a bit off. Corps aside, retail investors could double dip by shorting and holding out at the same time.

https://twitter.com/Kephrii/status/1...7Ctwgr%5Etweet

Short ladder attack, pulling out all the fun moves in our regulated but not so regulated environment.

[TheFanatic]

Originally Posted by vreihen16

I was referring to HCMC mentioned above, which is a sub-penny stock. The only piece of trading advice that a friend who has a seat on the market will offer anyone who asks is that pigs get slaughtered for messing around in the pink sheets and penny stocks.

Regarding GME, I'm starting to think that we are all being played for suckers by the institutional investors and hedge funds the past few days. There has been a pattern of a spike after opening turning into a crater about an hour later before leveling off for the rest of the day. Today's $100+ fall between 9:38 AM and 10:26 AM surely made a tidy profit for whoever was on the short train. Last Thursday's crater was over $300 in two hours, and Friday had a similar $100+ drop albeit after lunch when the backed-up RH buys from Thursday were finally made.....

the only reason hcmc has been gaining traction is due to whats been going on in recent news with its patent lawsuit. the results of that can make a massive difference with that stock price. They also have regular sec filings that show the company is at least legitimate and has investing potential over the run of the mill penny stocks from fake companies.

I do agree though that the powers a be who are manipulating the markets are using whats been going on with gme, amc and others to gain massive profits. it's ironic that as soon as there is a boom where they would lose it gets halted, plateaus, and then stays or falls. hcmc was no different. many trade companies prevented people from buying today. There are thousands of comments on the forums of people who are being denied the ability to buy into these stocks. These big investors got caught at first but now they're using it to make billions because they have the influence with these trade companies.


Top that off with some of these companies are now forcing stop losses on people they couldnt hold through a dip if they even wanted to. It's outright unfair


a decent video that talks about hcmc a little

[antzcrashing]

Originally Posted by vreihen16

I was referring to HCMC mentioned above, which is a sub-penny stock. The only piece of trading advice that a friend who has a seat on the market will offer anyone who asks is that pigs get slaughtered for messing around in the pink sheets and penny stocks.

Regarding GME, I'm starting to think that we are all being played for suckers by the institutional investors and hedge funds the past few days. There has been a pattern of a spike after opening turning into a crater about an hour later before leveling off for the rest of the day. Today's $100+ fall between 9:38 AM and 10:26 AM surely made a tidy profit for whoever was on the short train. Last Thursday's crater was over $300 in two hours, and Friday had a similar $100+ drop albeit after lunch when the backed-up RH buys from Thursday were finally made.....

Good analysis. Here are my thoughts. I think that the fact that robinhood and many other brokerages are limiting to 1 share (or none) of new positions is creating a market vacuum. Basically you cant have any new large positions and despite reddit and twitters best efforts, people are selfish (or differently motivated) and some are selling. The result is a stock drop like we saw today. I would add to this that wall st hedge funds may be using other tricks that we are not aware of, ie backroom phone calls putting a strong hold on short covering. Its a game of who has the biggest ammo and strongest will, and in today's battle the shorts won.

[BMW F22]

Originally Posted by Cyberdemon

https://twitter.com/Kephrii/status/1...7Ctwgr%5Etweet

Short ladder attack, pulling out all the fun moves in our regulated but not so regulated environment.

So let’s say they keep doing that, aren’t HFs already winning since they double downed on shorts? This will drive prices down and people start getting scared and dumping their shares which perpetuates the downturn. Supposedly this dip is before the rocketing similar to the VW squeeze but I don’t know. I don’t have a crystal ball and can’t help being a bit skeptical.

[SCREAM3R]

Originally Posted by BMW F22

So let’s say they keep doing that, aren’t HFs already winning since they double downed on shorts? This will drive prices down and people start getting scared and dumping their shares which perpetuates the downturn. Supposedly this dip is before the rocketing similar to the VW squeeze but I don’t know. I don’t have a crystal ball and can’t help being a bit skeptical.

You should be a bit skeptical, that means you're thinking lol. I bought a decent amount of GME but I have wondered the same as you have. Something else that bothers me is the amount of people comparing GME to VW. VW had similarities sure, but the majority of the shares were owned by one company not millions of separate retail investors. There is no guarantee of a dip before the big spike nor is there a guarantee it will spike nearly as high.

[BMW F22]

Originally Posted by SCREAM3R

You should be a bit skeptical, that means you're thinking lol. I bought a decent amount of GME but I have wondered the same as you have. Something else that bothers me is the amount of people comparing GME to VW. VW had similarities sure, but the majority of the shares were owned by one company not millions of separate retail investors. There is no guarantee of a dip before the big spike nor is there a guarantee it will spike nearly as high.

I’m thinking of jumping in tomorrow if it dips even further (closer to $100 is my comfort point). But I’ll have to sleep on it tonight and see. For all we know the ride might be over and that rocket ran out of fuel early. Looking at Reddit made me wonder how many people are true investors and how many are just sheep following blindly. Not saying it’s a bad thing. I’m just leery when a big group just does and says the same thing. Some could just be in it for themselves and using others to cash out.

[vreihen16]

I am out of GME tomorrow morning, if the cyclical price climb trend hits again and puts me over my buy-in price.....

[NorCalAthlete]

Links from reddit - data / resources / reasons the squeeze is not over yet.

Riiiiiiiight.

At these levels, it's NOT about the price of the stock. It is the number of shares in the hedge funds' possession. That's why they want you to sell.

https://www.sec.gov/data/foiadocsfailsdatahtm - first text file, search "GME", and you'll see the fails to deliver suggesting a real number in the millions, unheard of - these are purchased shares that couldn't be found. I have no idea how this simple metric isn't widely reported.

Hedge funds get paid more by fraudulently creating more shares when the stock goes under. They cannot cover anywhere near this price level because the shares don't exist. Manipulating the number of shares also dilutes the reported short float. Retail is holding on to shares they need and just not letting go, as some of those shares retail has are fraudulent. By the time they run out of money in interest payments dragging this out, it'll be a massive shitshow.

KEEP IT UP

More info: http://counterfeitingstock.com/CS2.0...tingStock.html

:edit: 84 GME @ $87.16 avg.

:edit 2: Please note one reason prices are still high is to encourage retail go to other stocks (looking at you AMC, BB, NOK), or get more easily duped by some scam like silver. It's always been about GME.

When it comes time for them to pay up, expect the price to drop first.

:edit 3: The price is now around where the volume dropped off. I think we're at the bottom, as long as we hold. I think the chance of seeing big upword moves is as high as its ever been. Unless they want us to sit here for a day. It's all very expensive psychology for them.

From @AlphaRRCapital1 on Twitter. Unable to buy shorts cause there isn’t enough shares available. Hold tight boys

Volume is low. Don’t believe the news. No one is selling. $GME is going to the moon. Hold on.

GME: MMs have until TOMORROW 2/2 to buy shares!! It can be anytime TODAY or TOMORROW! HOLD STRONG

STOP FREAKING THE FUCK OUT. 💎👋
MMs have until TOMORROW 2/2 to buy shares from expired 1/29 ITM calls.

Exercise Settlement Time: Exercise notices tendered on any business day will result in delivery of the underlying stock on the second (T+2) business day following exercise.

source: https://www.theocc.com/Clearance-and...Specifications

We were expecting a short ladder attack. It has happened every day since Wednesday 1/27.

We won last week. We made all calls between 115 and 320 strike expire in the money. That means MM has to buy shares in order to hedge against those expired ITM calls.

It can happen anytime TODAY or TOMORROW.

https://preview.redd.it/8dhhcvtzewe6...=webp&328e04da

If you take a look at NASDAQ's real-time trades, you can see only lots of 100 being traded back and forth: https://www.nasdaq.com/market-activi...al-time-trades

15 U.S.C.A. § 78i - the Illegality of Short Ladder Attacks (Legal insight)

Dear SEC and President Biden,

I am calling on you today, pursuant to 15 U.S.C.A. § 78i, titled Manipulation of Security Prices, to prohibit manipulative and deceptive tactics that artificially depresses the price of GME and AMC securities in contravention of the laws of the United States.

Section 78i(a) clearly states that "It shall be unlawful for any person, directly or indirectly, by the use of the mails or any means or instrumentality of interstate commerce, or of any facility of any national securities exchange, or for any member of a national securities exchange -- (2) To effect, alone or with 1 or more other persons, a series of transactions in any security registered on a national securities exchange, any security not so registered, or in connection with any security-based swap or security-based swap agreement with respect to such security creating actual or apparent active trading in such security, or raising or depressing the price of such security, for the purpose of inducing the purchase or sale of such security by others."

Currently, GME and AMC stock prices are actively being manipulated using a mechanism called "short ladder attacks" to depress the price of these stocks in contravention of 15 U.S.C.A. § 78i. "Short ladder attacks" occur when large institutions in possession of the aforementioned stocks sell them for just less than market value in rapid succession between one another in order to drive the price down. The fact that short ladder attacks exist is apparent from on-going market activity that can be seen here

https://www.reddit.com/r/wallstreetb...dder_attack_4/

https://i.gyazo.com/d33d2d9346092b3c...fc394225c3.png

(Check this from the huge dip last Thursday. No volume but still an enormous dip in price)

https://preview.redd.it/nmiqx27md4e6...=webp&56177e33 https://www.reddit.com/r/wallstreetb...ing_explained/

check this out

Such blatant attacks readily establishes prima facie case of market manipulation and must be investigated by the SEC immediately. Further silence from the SEC on this matter, which can be investigated quite quickly, not only encourages further market manipulation but also further diminishes public trust and faith in the U.S. Government.

Finally, section 78i(f) makes it clear that "Any person who willfully participates in any act or transaction in violation of subsections (a), (b), or (c) of this section, shall be liable to any person who shall purchase or sell any security at a price which was affected by such act or transaction."

I am calling on you to do your job. The direct manipulation of GME and AMC stock prices is an on-going crisis that directly hurts the public interest and is AGAINST THE LAW. You must act now before it is too late.

Sincerely,

Your Average Retail Investor

Edit: Feel free to copy, share, do whatever with this. I really don’t care. My work is worthless unless something is actually done to stop this. Also, thank your for the awards 💎🙌

Edit 2: if you want to copy this, go ahead, if you’re having trouble, dm me and I’ll send it to you directly

Edit 3: There was a suggestion to post this on Twitter. Whoever wants to can go ahead or dm me if you need to make it smaller. 🙏

Edit 4: So, I have sent this to the SEC, but I expect nothing more than a form letter, which is basically a garbage non-answer (Google it). I’d rather this get some media coverage so feel free to spam this on Twitter or w/e. No credit necessary

Bloomberg and other media is trying to tell us that it’s over and short interest for $GME has dropped all the way from 120% to 39%. ⚠️This is false.⚠️ That massive amount of short closing would show as a MASSIVE increase in volume�� and MASSIVE increase in stock price�� BUY THE FUCKING DIP

[bimmer pleaser V2]

Originally Posted by NorCalAthlete

Links from reddit - data / resources / reasons the squeeze is not over yet.

Riiiiiiiight.

At these levels, it's NOT about the price of the stock. It is the number of shares in the hedge funds' possession. That's why they want you to sell.

From @AlphaRRCapital1 on Twitter. Unable to buy shorts cause there isn’t enough shares available. Hold tight boys

Volume is low. Don’t believe the news. No one is selling. $GME is going to the moon. Hold on.

GME: MMs have until TOMORROW 2/2 to buy shares!! It can be anytime TODAY or TOMORROW! HOLD STRONG

15 U.S.C.A. § 78i - the Illegality of Short Ladder Attacks (Legal insight)

Bloomberg and other media is trying to tell us that it’s over and short interest for $GME has dropped all the way from 120% to 39%. ⚠️This is false.⚠️ That massive amount of short closing would show as a MASSIVE increase in volume�� and MASSIVE increase in stock price�� BUY THE FUCKING DIP

That subreddit is turning into the_donald. Cult of delusion.

[NorCalAthlete]

Originally Posted by bimmer pleaser V2

That subreddit is turning into the_donald. Cult of delusion.

Already cashed out my principal. Letting the rest ride to see what happens. Got in at $40, might as well stick it out - worst case I make $0, best case I make $750k or so.

If delusion is what it takes, so be it. Fundamentals went out the window about a year ago.

[P1]

Originally Posted by BMW F22

I’m thinking of jumping in tomorrow if it dips even further (closer to $100 is my comfort point). But I’ll have to sleep on it tonight and see. For all we know the ride might be over and that rocket ran out of fuel early. Looking at Reddit made me wonder how many people are true investors and how many are just sheep following blindly. Not saying it’s a bad thing. I’m just leery when a big group just does and says the same thing. Some could just be in it for themselves and using others to cash out.

You referring to WSB? I think 99% of those 8.1M will be “like so over this” in a few days.

“Like, I like put in $500 and I didn’t like see a 1,000% a day spike. Like, for real. I’m SO like over this, ghaaa!”