stocks in meltdown mode

[SunnySide]

My little brother is a wallstreetbets member. He cashed out 2 days ago.

Big money guys shouldnt be able to short sale (sell stock they dont own on assumption it will go down and they will then buy the stock). Hedgefund big money guys target a stock. Sell a stock (they dont technically own) for $10 bc the volume them and their other hedges do it at in unison will drive the price down. Then they buy the stock for $8 or whatever it goes down to complete the previous sell at $10, pocketing $2 for a stock they never owned.

Meanwhile, single mom and dads (who actually own the stock) watch their stock price go from $10 to $8 over night not bc of a companys PE or financials (things that are supposed to dictate stock price and market activity) but bc some hedgefund investors decided to target gamestop or whatever stock for a short sale cash grab while on their yachts or some strip club.

It blows my mind this is legal.

So wallstreetbets decided to buy gamestop and not stop buying gamestop so instead of the price going down it went up and up bc wallstreetbets didnt stop buying.

Now these hedgefunds who thought they could buy the stock at $8 and make a quick $2 ...... have to buy the stock at like $300 and are losing $290 or where ever they cut their losses.

I am not a stock person, this is my layperson understanding and I could be wrong or way over simplyfing things to the point of being inaccurate.

This is like a modern day robin hood.

[SunnySide]

Two of the major hedge funds targeted by investors on Reddit pushing up the stock price of GameStop have waved expensive flags of defeat and sold out of their investments, losing millions of dollars.

On Wednesday, the stock price of GameStop (GME), the mall retailer for video games, soared 134%, a staggering increase of 748% in just one week after Reddit investors launched a chaotic short squeeze attack to increase the price and screw over major investors.

Wall Street hedge funds, including Citron Research and Melvin Capital, had shorted the stock, meaning they bet against it and needed it to drop in price in order for their investments to be successful.
https://www.buzzfeednews.com/article...-street-losses

After the flurry of activity on Wednesday, TD Ameritrade, one of the free brokerage apps commonly used by young investors, briefly restricted trades on some stocks, including GameStop and AMC (another target of the WSB crowd) “in the interest of mitigating risk for our company and clients." That frustrated many who saw the halt as Wall Street firms stopping investors from making trades that would improve their personal wealth.

------------------
Crappy how the hedge fund guys were able to get TD and robinhood to pause activity so the could regroup ... at the expense of people like me and you being able to make money off it.

if pride didnt get in my way, id make my little brother my financial advisor. the language he uses sounds like Japanese to me.

[CRedskinsRule]

I sold AMC yesterday at a 400% win. I bought a bit of AMC and Cinemark a while ago thinking they will rebound. At this point Cinemark also has been a very nice growth.

Sent from my SM-G973U using Tapatalk

[MTK]

Imagine if you bought in with GS at $3 and sold off at $347? Fuck.

[SunnySide]

The battle between the financial establishment and small individual investors is heating up, and the situation is already becoming political — in some cases providing some interesting common ground.

The anger is bipartisan. Rep. Alexandria Ocasio-Cortez (D., N.Y.), Rep Ro Khanna (D., Calif.), Sen. Ted Cruz (R., Texas) and even Donald Trump Jr., eldest son of the former president, have all called out the situation as unfair for individual investors.

As Robinhood and other brokerages halted buying of Gamestop (GME), AMC (AMC) and other stocks Thursday, only allowing users to sell their positions, a wave of anger — and accusations of hypocrisy toward Robinhood — washed over parts of the trading community.

Hedge funds could buy and sell, but on many platforms, retail investors could only sell.

“This is unacceptable,” AOC tweeted on the news. “Fully agree,” Ted Cruz responded.

https://www.yahoo.com/finance/news/t...171906758.html

CRed - nice return, i thought movie theaters/airlines/restaurants would be dead

[Chico23231]

Establishment Always Wins

[MTK]

Originally Posted by Chico23231

Establishment Always Wins

aka the system is rigged

sometimes we get these blatant examples of it

[Chico23231]

Originally Posted by MTK

aka the system is rigged

sometimes we get these blatant examples of it

I know a managing director who works with hedges funds for a big firm.

I haven’t asked yet...but these hedge funds guys will first want blood. They are gonna make someone pay. They are maybe the most aggressive, blood thirsty folks in global banking & markets.

Also remember, there a lot of folks worldwide waiting to see what happens...lotta folks not happy.

Establishment Always Wins

[mredskins]

My BIL supposedly made a million dollars in his stock. He put $2k on ENZC and it grew by 50000%

My wife was telling me, I was just like ok.

Not sure I believe it

[Giantone]

Hedge Fund guys getting a taste of their own medicine .

[sdskinsfan2001]

Do Hedge Funders only try to short stock? That is their whole mission?

If so, this couldn't happen to a nicer group of people.

Talk about uniting the clans.

What do companies get from selling to these people? Is it because they're confident the stock will still go up, even though a company is actively working on dragging it down?

[CRedskinsRule]

Originally Posted by mredskins

My BIL supposedly made a million dollars in his stock. He put $2k on ENZC and it grew by 50000%



My wife was telling me, I was just like ok.



Not sure I believe it

Looks like ENZC was selling at around 10 cents after opening in December and went up to 25cents yesterday. While that's great profit its not making a million dollars. You can always Google a stock ticker and see the chart of pricing

Sent from my SM-G973U using Tapatalk

[mooby]

Not gonna lie, I wish I was smart enough to understand the stock market enough to buy in on the Gamestop/AMC/etc. stocks while the gettin' was good.

But everybody smart enough to understand the stock market says the first rule is if you don't know what you're doing, don't buy individual stocks.

So here I sit watching everybody else get rich off the action.

I understand the basic concept of stocks, you buy low and sell high. Don't put all your eggs in one basket. Diversify your bonds, ninja. But this whole concept of short-sales and selling stocks you don't own so you can buy them back later at a lower price doesn't make sense to me at all. I just can't understand why you would be allowed to sell a stock you don't own.

Makes me happy seeing people who manipulate the market for a living (and get rich doing it) getting a taste of their own medicine though.

[sdskinsfan2001]

Rich people/companies/firms fucking over every day Americans = Something we can all get behind hating

But yet it's all perfectly "legal" and has been going on forever. We're always left holding the bag.

[sdskinsfan2001]

What kind of person thinks to himself/herself: What do I want to do for a living? I know, I want to get rich while fucking over my neighbor.