well my son who is a Millennial has used them and his Gen Z brother the same. He has made over 10K in the last 90 days so........
Anyone Following (or even investing) in GameStop?
- Thread starter SamSwimmer
- Start date
Setting themselves up for disappointment later and trouble. I have been through recessions. This thing is gonna crash.
Is he placing portions of his earnings aside in more stable investments, CDs, mutual funds, etc?
Ally sent this out not too long ago, interesting how how called out two companies by name and pretty much called them worthless.
It was an absolutely wild week on Wall Street as internet hordes drove up the price of GameStop, an unprofitable video-game retailer, from under $20 to almost $350 in what's known as a "short squeeze."
We've seen some wild things in the market lately, but this might just take the cake.
What's a short squeeze?
Short selling involves borrowing and then selling shares of a stock with the intent of buying them back later at a lower price.
But it's a gamble: If the price of a shorted stock rises quickly, the short seller may have to buy back the stock at a higher price before their losses pile up. That's the "short squeeze."
End game for GameStop
This week, short sellers found themselves on the wrong side of the market. Social media users started squeezing GameStop stock – and other down-and-out companies, such as AMC – to epic levels. But short squeezes can be dangerous propositions for both sides.
Squeezed stocks can move violently for no reason and the tide can turn quickly. And when the squeeze is done, everybody tries to sell at the same time.
Now, the SEC and Treasury Department are looking into the short squeezes, and the last thing you want is regulators knocking at your door.
Following the crowd
So is the proverbial juice worth the squeeze?
Getting lured into trading the short squeeze can be tempting. But keep in mind – the masses who moved GameStop to the headlines this week may have been less concerned with making money than they were about making a point. The short story on this short selling situation is to remember that while it may seem exciting at first glance, long-term stock performance ultimately comes down to fundamentals (earnings, cash flow, strategy).
For a look at the history of short squeezes and how to invest through this madness, head to our full Weekly Viewpoint. And as always, I'll be reacting in real time on Twitter at @justLbell.
A note from Lule Demmissie, President of Ally Invest –
Due to the increase in market volatility, our platforms experienced a lot of challenges this week that led to outages and increased customer service wait times. Nothing matters more to us than doing right by you and all our customers. We know how frustrating this can be, and we're working hard to resolve these issues.
It was an absolutely wild week on Wall Street as internet hordes drove up the price of GameStop, an unprofitable video-game retailer, from under $20 to almost $350 in what's known as a "short squeeze."
We've seen some wild things in the market lately, but this might just take the cake.
What's a short squeeze?
Short selling involves borrowing and then selling shares of a stock with the intent of buying them back later at a lower price.
But it's a gamble: If the price of a shorted stock rises quickly, the short seller may have to buy back the stock at a higher price before their losses pile up. That's the "short squeeze."
End game for GameStop
This week, short sellers found themselves on the wrong side of the market. Social media users started squeezing GameStop stock – and other down-and-out companies, such as AMC – to epic levels. But short squeezes can be dangerous propositions for both sides.
Squeezed stocks can move violently for no reason and the tide can turn quickly. And when the squeeze is done, everybody tries to sell at the same time.
Now, the SEC and Treasury Department are looking into the short squeezes, and the last thing you want is regulators knocking at your door.
Following the crowd
So is the proverbial juice worth the squeeze?
Getting lured into trading the short squeeze can be tempting. But keep in mind – the masses who moved GameStop to the headlines this week may have been less concerned with making money than they were about making a point. The short story on this short selling situation is to remember that while it may seem exciting at first glance, long-term stock performance ultimately comes down to fundamentals (earnings, cash flow, strategy).
For a look at the history of short squeezes and how to invest through this madness, head to our full Weekly Viewpoint. And as always, I'll be reacting in real time on Twitter at @justLbell.
A note from Lule Demmissie, President of Ally Invest –
Due to the increase in market volatility, our platforms experienced a lot of challenges this week that led to outages and increased customer service wait times. Nothing matters more to us than doing right by you and all our customers. We know how frustrating this can be, and we're working hard to resolve these issues.
10 grand? 🤣 Cool. Maybe he can join all the youtube guru's telling people how he became a stock picking guru.
The same type of robinhood trader I've been describing.
Yes owned by the US govt like the US Treasury now. Not disputing that but they are never going to allow Bitcoin or whatever to over take that. That is national security issue. It might not be in paper form but they are not going to have it controlled by an outside entity.
US Treasury Proposes Sweeping New Disclosure Rules On Bitcoin, Other Cryptos
The U.S. Treasury Department proposed new rules that the government says would make convertible digital currencies like bitcoin less attractive to criminals.
www.pymnts.com
U.S. Treasury Secretary Steven Mnuchin said in a prepared statement that the new proposed rule “addresses substantial national security concerns in the CVC market and aims to close the gaps that malign actors seek to exploit in the record-keeping and reporting regime. The rule, which applies to financial institutions and is consistent with existing requirements, is intended to protect national security, assist law enforcement and increase transparency while minimizing the impact on responsible innovation
It's a different world Herdman. It's already happening and the US govt wont be the one ultimately controlling it. I should have used "US" currency in the quotes in my previous post.
Chase just put this out, a bit more generic and corporate than Ally's.
Dear client, Individual investors demonstrated their market impact this week like never before. While the past year has been unpredictable, the record-level trading volumes and market volatility of this week may have been exhilarating for some and exhausting for others. As we head into the weekend, I want to offer you resources that will help you make smart, more confident trading decisions, not just in the coming days but for the long-term. At J.P. Morgan, we believe your investments should help you reach your goals, not distract you from them. |
Read our take about what's happening in markets now. Don't miss the forest for the trees. Many companies reported earnings in the past few weeks, and 80% of them beat expectations. Another COVID-19 vaccine is approaching its final trial. Markets will likely remain volatile in the near term but our outlook for 2021 stands. Before investing, consider the underlying fundamental health of a company. J.P. Morgan Wealth Management clients can access our award-winning equity research any time in our mobile app or on your desktop. Understand how any investment fits into your long-term goals and at what point you might need the cash from your investment. Read more tips for investing in volatile markets. For our clients who are new to You Invest, welcome. We hope you enjoy the research and trading features we offer. For our long-time clients, thank you for your trust and please know that J.P. Morgan will continue to offer the tools to help you make smart wealth management decisions in any environment. No one can guarantee market stability, but at J.P. Morgan we can offer you the strength of an investment company that has weathered many storms alongside our clients over the past 200 years. Welcome to our company. Sincerely, Kristin Lemkau CEO, J.P. Morgan Wealth Management |
So many companies are over valued right now. Gonna be another 2008 or 2009 soon boys. I am telling you
BS. Game Stop is easily a $1,000 a share company.
@raleighherdfan
This gives more credence to your thoughts. Looks like some tech and regulatory limitations at play for the shut down. So much leverage at such a small group of stocks ...,
This gives more credence to your thoughts. Looks like some tech and regulatory limitations at play for the shut down. So much leverage at such a small group of stocks ...,
I don’t have any clue what it should be.
If you think it’s over valued then sell now...especially if you’re closer to retirement.
Right now with these low interest rates there is no where to put your money other than the market. Unfortunately I was locked out of a few private equity deals (music royalty fund, marijuana hedge fund, distressed asset fund, et al) due to not being a qualified purchaser.
Wish I could get in Universa Investments...but probably need a cool 30 million to get in there.
if the feds put all this money out there in circulation for state bailouts, pork, etc. then aren't the interest rates going to have to go up?
Not necessarily. I’m not an expert, but rates in Europe and Japan have been near zero or negative for a decade or more as I recall.
Weren’t you bragging about your retirement portfolio just about everyday prior to January 20? Now all of a sudden it’s a bad thing the market is so high Atleast be consistent
I was bragging but at the same time it has been too high for awhile now. Also why I have tried to mitigate risks.
Rambling about you not understanding the Bernies and Trumpers agreeing on something? Well yeah, you don't understand that. In the end, populism is populism and comes from the same frustrations, left or right or whatever. See Germany post WWI.
Duh.
I think most of these folks are just having fun playing a little side hustle. Remember when poker got really popular? Fvcking around day trading on Robinhood seems to be the new Texas Hold Em.
Poker used to be kinda seedy lol.
That said, I know a few serious crypto guys. My only real financial regret in life: not going all in on Bitcoin early. Do you know what the first financial transaction done with Bitcoin was? Buying a Papa Johns pizza...for 10k Bitcoin. Jesus Christ...I wish I had 10k Bitcoin today lol.
Who knows. Are the "laws" of economics changing? Maybe. Related, here is an article on a growing belief full employment no longer spurs inflation.
https://www.nytimes.com/2021/01/18/business/economy/full-unemployment-fiscal-policy.html
Could that be due to aging populations slowing growth/stagnating growth? Not enough fvcking going on?
I've always said there are long-term reasons immigration has been pretty much welcomed into the USA...one of those being keeping our fertility rate up high enough to grow economically. You are never going to POTUS go on TV and explain, "Well, those Mexicans have more babies and that's a good thing," but I am pretty sure that has been part of the thinking.
I think the Dems want more people on the dole and more people to vote for them
Are we really confident the hedge funds are out of their positions on GME?
When have we ever heard in real time what position a hedge fund does or doesn’t have?
I know it’s reported on CNBC but color me skeptical.
When have we ever heard in real time what position a hedge fund does or doesn’t have?
I know it’s reported on CNBC but color me skeptical.
Too Funny now NYSE twitter was hacked and they are telling everyone to Hold Gamestop.
New York Stock Exchange Twitter account allegedly hacked - New York Daily News (nydailynews.com)
Pretty sad when they cannot even keep their Twitter account safe.
New York Stock Exchange Twitter account allegedly hacked - New York Daily News (nydailynews.com)
Pretty sad when they cannot even keep their Twitter account safe.
Probably wont know for sure until SEC filings come out.
I have little doubt that hedge funds were behind the actual "squeeze" being conducted/reported. No doubt retail buyers were playing along...but, they were ultimately going to be the orange getting squeezed once the big boys started dumping their shares on them. The "play" was basically over for serious players by the time it hit the major media last week IMO.
Bottom line, a few avg joes hit a lottery ticket in their RH account. Good for them. I know they splurged by taking their old lady to a Holiday Inn Express last night...just hope they dont start believing they are skilled at the process.
A? I know guys who were mining when this shit was new. About 2011 to late 2014 was the heyday for hobbyist miners. Most people spent theirs...but others did not. Then it got more complicated with ASIC mining.
I am shocked ITT doesn't have courses on blockchain.
https://www.cnbc.com/2021/02/05/gam...rce=iosappshare|com.apple.UIKit.activity.Mail
Shocking....
Robinhood? "Crypto nerds"? pfffft. 🤣
The prevailing narrative was that a band of Reddit-inspired small traders rose up against Wall Street by buying GameStop en masse, forcing a short squeeze by professional hedge fund managers, who were forced to cover their negative bets or risk catastrophic losses.
But several signs are pointing to institutional investors as big drivers of the wild price action on the way up.
“Although retail buying was portrayed as the main driver of the extreme price rally experienced by some stocks, the actual picture may be much more nuanced,” JPMorgan global quantitative and derivatives strategy analyst Peng Cheng told clients in a note. JPMorgan’s quant team uses public data from exchanges and applies a proprietary methodology to identify which flows are from retail traders. GameStop was number 15 on the firm’s retail buying list for January.
However, it’s possible the noise from this crowd caused most to overlook Wall Street co-opting this trade to make a fast buck as well, data shows.
As I stated. The big players drive stock prices. "Retailers" simply dont have the scratch to squeeze billion $$ hedge funds.
Shocking....
Robinhood? "Crypto nerds"? pfffft. 🤣
The prevailing narrative was that a band of Reddit-inspired small traders rose up against Wall Street by buying GameStop en masse, forcing a short squeeze by professional hedge fund managers, who were forced to cover their negative bets or risk catastrophic losses.
But several signs are pointing to institutional investors as big drivers of the wild price action on the way up.
“Although retail buying was portrayed as the main driver of the extreme price rally experienced by some stocks, the actual picture may be much more nuanced,” JPMorgan global quantitative and derivatives strategy analyst Peng Cheng told clients in a note. JPMorgan’s quant team uses public data from exchanges and applies a proprietary methodology to identify which flows are from retail traders. GameStop was number 15 on the firm’s retail buying list for January.
However, it’s possible the noise from this crowd caused most to overlook Wall Street co-opting this trade to make a fast buck as well, data shows.
As I stated. The big players drive stock prices. "Retailers" simply dont have the scratch to squeeze billion $$ hedge funds.
The fact is that almost none of the investors believe in the Gamestop business. The company operates a chain of stores in the United States that sell computer games and consoles. Once, it was a great business, but now people buy games and consoles on the Internet, and Gamestop has begun to lose its turnovers. I realized this when I started to better study trading on the stock exchange on https://fbs.com/. As a result, most serious investors have long sold the company's shares. Moreover, many funds not only sold shares, but they also shorted them, that is, borrowed shares from a broker and sold them on the market in anticipation of a price drop.
Last edited:
