The Official Stock Market Thread

[Braswell10]

I really don't like this trend of banning people who express their opinion or thought. No way WSB should have gotten banned. I don't understand how that is even legal.

[monkeymcgee]

The motive is to get paid. The ideological stuff is just for fun.

[monkeymcgee]

And to go back to an earlier post, we’re definitely getting a Michael Lewis book about this now

[trixstar]

Originally Posted by Braswell10

I really don't like this trend of banning people who express their opinion or thought. No way WSB should have gotten banned. I don't understand how that is even legal.

If you’re talking about their discord it should have been banned at least a year ago. I have never in my life been in a more anti Semitic and homophobic discord channel. I left after it was obvious they weren’t going to moderate it. Discord isn’t going to give a megaphone to a channel with over 250,000 people when it’s full of bigoted garbage.

[GeechQuest]

Originally Posted by mike1498

See if it was only about taking advantage of GME because of the fact it's shorted by more than the float, why is this happening with other meme stocks too now?

Based on their writing on the WSB's, I'm more convinced this is supposed to be a general statement towards hedge funds to fear shorting companies. Maybe I'm wrong but I think this is more of an FU to hedge funds than anything else.

Is this a bad thing? I don't know. If they were buying GME because they thought it was a good company and that's what caused the squeeze, that's different. My issue is more of the motive for the squeeze.

It’s because people don’t understand. If you want to try to squeeze the other meme stocks and hurt the hedge funds, have at it. It’s a free market and you can do whatever you want. You won’t beat them at that race though, because they can cover you since the companies aren’t shorted to the gills and beat you on the way down. Again, free market. Winners and losers.

The reason GME is different is because they gambled and mathematically can’t win.

It always has been a free market and people buy overvalued/undervalued stocks all the time for whatever reason they want. It’s their right to do so should they want to take the risk. The only reason why this is an issue is because smart people caught the shorts completely overexposed on GME. If it was just a handful of meme stocks being pumped (TSLA) who cares? Bet against them if you want and make your money that way.

Nobody is taking advantage of GME though. They realized a HUGE market inefficiency and are exploiting it, which is literally what capitalism is all about.

[Braswell10]

Originally Posted by trixstar

If you’re talking about their discord it should have been banned at least a year ago. I have never in my life been in a more anti Semitic and homophobic discord channel. I left after it was obvious they weren’t going to moderate it. Discord isn’t going to give a megaphone to a channel with over 250,000 people when it’s full of bigoted garbage.

I was referring to their reddit, but it seems like it just got unbanned. I only heard about it recently, so I was unaware of those issues in the discord chat.

[trixstar]

Originally Posted by Braswell10

I was referring to their reddit, but it seems like it just got unbanned. I only heard about it recently, so I was unaware of those issues in the discord chat.

I think the mods shut it down to clean it up and try to mitigate all the new accounts flooding it. They think the SEC is actively going through posts. Which it may be but that seems a little tin foil hat to me

[monkeymcgee]

Originally Posted by trixstar

I think the mods shut it down to clean it up and try to mitigate all the new accounts flooding it. They think the SEC is actively going through posts. Which it may be but that seems a little tin foil hat to me

Yeah, I'm sure if the SEC cares about WSB they've been watching it for some time. Comments were getting seriously spammed by bots today, so I imagine they had some housework to do.

[patchgenie]

Originally Posted by monkeymcgee

And to go back to an earlier post, we’re definitely getting a Michael Lewis book about this now

i think there was a chapter on a stock pumper in NeXt.

hopefully, lcm sold geerty.

that is true trixstar, some anti-semitism towards melvin. don't like seeing or reading that garbage.

[mike1498]

Originally Posted by GeechQuest

It’s because people don’t understand. If you want to try to squeeze the other meme stocks and hurt the hedge funds, have at it. It’s a free market and you can do whatever you want. You won’t beat them at that race though, because they can cover you since the companies aren’t shorted to the gills and beat you on the way down. Again, free market. Winners and losers.

The reason GME is different is because they gambled and mathematically can’t win.

It always has been a free market and people buy overvalued/undervalued stocks all the time for whatever reason they want. It’s their right to do so should they want to take the risk. The only reason why this is an issue is because smart people caught the shorts completely overexposed on GME. If it was just a handful of meme stocks being pumped (TSLA) who cares? Bet against them if you want and make your money that way.

Nobody is taking advantage of GME though. They realized a HUGE market inefficiency and are exploiting it, which is literally what capitalism is all about.

See this is where I think the disconnect is. While I believe that Tesla's overvalued, I wouldn't put that into the "meme stock" category because there is actual growth potential. I'm not saying it's worth the valuation it's at, but it isn't going up because people on a forum saying they are going to pump it.

When I say meme stocks I'm talking AMC, Black Berry, Express, GME. People aren't buying them right now because they think there's potential, they are buying them because WSB said they are next to be pumped. Should a group of people be allowed to get together to essentially pump and dump because they know they have the power to do it?

If that's allowed I don't know why insider trading shouldn't be allowed. I could say "well its a free market too". How is insider trading ethically wrong while a forum banding together to cause a bunch of squeezes aren't?

You may have a point with GME but this is farther than GME.

[monkeymcgee]

Originally Posted by mike1498

See this is where I think the disconnect is. While I believe that Tesla's overvalued, I wouldn't put that into the "meme stock" category because there is actual growth potential. I'm not saying it's worth the valuation it's at, but it isn't going up because people on a forum saying they are going to pump it.

When I say meme stocks I'm talking AMC, Black Berry, Express, GME. People aren't buying them right now because they think there's potential, they are buying them because WSB said they are next to be pumped. Should a group of people be allowed to get together to essentially pump and dump because they know they have the power to do it?

If that's allowed I don't know why insider trading shouldn't be allowed. I could say "well its a free market too". How is insider trading ethically wrong while a forum banding together to cause a bunch of squeezes aren't?

You may have a point with GME but this is farther than GME.

Two things:

1. How is what is going on with meme stocks any different from analysts giving price targets or buy/sell/hold recommendations? Groups of people agree with a thesis and they buy. It's not a pump and dump. I'm a regular at WSB and I know it may look that way if you just look at the daily thread--it's like a cheerleading thing for your positions. But every big play has DD behind it or it dies quickly. Even if that DD is "this is heavily shorted and there might be a gamma or short squeeze".

2. You will rarely find a consensus on WSB for anything. Even those who were right about GME had to put up with months of joking and criticism with good arguments. There's no hive mind there, despite what the media may be telling you right now.

[GeechQuest]

Originally Posted by mike1498

See this is where I think the disconnect is. While I believe that Tesla's overvalued, I wouldn't put that into the "meme stock" category because there is actual growth potential. I'm not saying it's worth the valuation it's at, but it isn't going up because people on a forum saying they are going to pump it.

When I say meme stocks I'm talking AMC, Black Berry, Express, GME. People aren't buying them right now because they think there's potential, they are buying them because WSB said they are next to be pumped. Should a group of people be allowed to get together to essentially pump and dump because they know they have the power to do it?

If that's allowed I don't know why insider trading shouldn't be allowed. I could say "well its a free market too". How is insider trading ethically wrong while a forum banding together to cause a bunch of squeezes aren't?

You may have a point with GME but this is farther than GME.

This is the problem though, YOU don’t think it’s a meme stock and YOU think there’s potential for growth. It’s all speculative regardless. I could thin Tesla is completely overvalued and then I have the option to short it and bet against it. We both can do whatever we want.

Not singling you out Mike, you know I respect you, but nobody gets to dictate how I value a stock. We all have access to the same information and can draw our own conclusions on how much “stock” we put into a company. Nobody is “manipulating” anything, they’re just overvaluing a stock. There has to be a buyer and a seller on EVERY stock. Someone values these and is willing to pay for whatever reason they want. It’s their right to do so, whether you agree with it or not.

[mike1498]

Originally Posted by monkeymcgee

Two things:

1. How is what is going on with meme stocks any different from analysts giving price targets or buy/sell/hold recommendations? Groups of people agree with a thesis and they buy. It's not a pump and dump. I'm a regular at WSB and I know it may look that way if you just look at the daily thread--it's like a cheerleading thing for your positions. But every big play has DD behind it or it dies quickly. Even if that DD is "this is heavily shorted and there might be a gamma or short squeeze".

2. You will rarely find a consensus on WSB for anything. Even those who were right about GME had to put up with months of joking and criticism with good arguments. There's no hive mind there, despite what the media may be telling you right now.

I mean what you are saying could be true, but they self proclaim to be "retards" and "degenerates" (For people who don't have context, this is literally what they claim to be I'm not calling them that). They are constantly asking where to YOLO their money and they post their ridiculous gains or loses on there from some highly speculative stock. This isn't the first time they've gotten in trouble either. I'm pretty sure they were the first to take advantage of that glitch on robinhood. While I did not read WSB much ever, I'd watch youtube videos (previous to GME) about the forum. I didn't get much "DD" from that. And regardless, theres a difference between posting your DD and literally writing a post about pumping the stock.

[mike1498]

Originally Posted by GeechQuest

This is the problem though, YOU don’t think it’s a meme stock and YOU think there’s potential for growth. It’s all speculative regardless. I could thin Tesla is completely overvalued and then I have the option to short it and bet against it. We both can do whatever we want.

Not singling you out Mike, you know I respect you, but nobody gets to dictate how I value a stock. We all have access to the same information and can draw our own conclusions on how much “stock” we put into a company. Nobody is “manipulating” anything, they’re just overvaluing a stock. There has to be a buyer and a seller on EVERY stock. Someone values these and is willing to pay for whatever reason they want. It’s their right to do so, whether you agree with it or not.

That's totally fine. Do you believe the reason people are buying GME is the same reason they are buying Tesla? I think they are both overvalued, but I think it's pretty clear the difference between the two. Do you agree? Or did people all the sudden realize the value in GME? While we can disagree with Tesla's valuation, it's price isn't because of a specific forum trying to pump it.

[monkeymcgee]

Originally Posted by mike1498

I mean what you are saying could be true, but they self proclaim to be "retards" and "degenerates" (For people who don't have context, this is literally what they claim to be I'm not calling them that). They are constantly asking where to YOLO their money and they post their ridiculous gains or loses on there from some highly speculative stock. This isn't the first time they've gotten in trouble either. I'm pretty sure they were the first to take advantage of that glitch on robinhood. While I did not read WSB much ever, I'd watch youtube videos (previous to GME) about the forum. I didn't get much "DD" from that. And regardless, theres a difference between posting your DD and literally writing a post about pumping the stock.

Look, it's definitely more gambling than investing there. Much of the banter is posturing and joking around--they take the 4chan part of the motto to heart. But I'm pretty old (mid-40s) and I've learned more about the market in the 2.5 years I've been going to WSB regularly than I knew up to that point. There are a lot of people who know quite a bit about some sophisticated trading strategies and can explain them well. Particularly with options.

I get that it seems chaotic and stupid from the outside, but the performance of my IRA looks a hell of a lot better than it did before I started reading WSB. But sometimes you take a L following DD you read there. Sometimes a big L. In a sense, that's what's is a bit offensive to WSB about the reaction of the hedge funds to making a bad trade with GME--instead of sucking it up and making a better trade, they're using all the channels at their disposal to cry about it.

[GeechQuest]

Originally Posted by mike1498

That's totally fine. Do you believe the reason people are buying GME is the same reason they are buying Tesla? I think they are both overvalued, but I think it's pretty clear the difference between the two. Do you agree? Or did people all the sudden realize the value in GME? While we can disagree with Tesla's valuation, it's price isn't because of a specific forum trying to pump it.

I think the value in GME is that the shorts have to unwind their positions. Right now, GME is more “valuable” not by fundamental measures but by pure supply and demand measures.

I’ve made my positions on GME known.

Yesterday I had sell orders for 6 shares at $225. Those expired at bell yesterday. I took data this morning, reassessed my position and realized that $225 was “undervalued”.

Valuation isn’t strictly determined by P/E, Debt, Revenue, you name whatever other measure you want to assign to “value”. Yes, right now GME is more valuable to me than Tesla. If you feel it’s way overvalued, you’re welcome to short it and make a killing on the way down. I’d recommend against that though.

[TheFrenzy]

I’m no Twitter comedian, but my hope is that everyone who was ever forced to trade in 25 basically new video games for $3.85 in store credit at GameStop is able to make what they should have received in the first place and then gets out.

[NeedChapmans]

Originally Posted by GeechQuest

Valuation isn’t strictly determined by P/E, Debt, Revenue, you name whatever other measure you want to assign to “value”. Yes, right now GME is more valuable to me than Tesla. If you feel it’s way overvalued, you’re welcome to short it and make a killing on the way down. I’d recommend against that though.

What you're seeing here is what we've been seeing in other markets. Crypto markets. Card markets etc.

The stock market was always supposed to be based on value because when you boil down the actual asset you own; a piece of the company; it's valuable because of the money the company generates (or things the company owns). So while one BTC has no intrinsic value; one Mike Trout auto has no intrinsic value; a share of stock is/was supposed to.

What this experiment has proven (call it whatever you want) is that you're correct. Fundamentals have long escaped this market, just as they have in others. The "value" of a stock is simply what someone else is willing to pay; all the usual ratios and figures be damned.

GME is just the beginning. This is going to be wild.

[nabzy28]

Are they going after First Majestic, next? ~20-25% reported shorts, and I don't know how much of the float is held by institutions/insiders. Over 1 million shares traded after hours with a 7 mil. daily average.

[GeechQuest]

Originally Posted by NeedChapmans

What you're seeing here is what we've been seeing in other markets. Crypto markets. Card markets etc.

The stock market was always supposed to be based on value because when you boil down the actual asset you own; a piece of the company; it's valuable because of the money the company generates (or things the company owns). So while one BTC has no intrinsic value; one Mike Trout auto has no intrinsic value; a share of stock is/was supposed to.

What this experiment has proven (call it whatever you want) is that you're correct. Fundamentals have long escaped this market, just as they have in others. The "value" of a stock is simply what someone else is willing to pay; all the usual ratios and figures be damned.

GME is just the beginning. This is going to be wild.

At least in the stock market if I feel something is overvalued I have the OPTION to bet against it and be rewarded handsomely.

I wish I could bet against base Prizm rookies. I’d make a killing.

If you want to bet against a stock it’s available to all of us, just be mindful of the short float because it could be detrimental to your bank account.

There are what? 3500 different stocks. Only the ones with insane float amounts are being “overvalued” because in doing that I’m creating value not against the company but against those who bet against it too heavily. It’s real value too.

Free market, nobody is forced to play.

[RW3isTHEGOAT]

Originally Posted by GeechQuest

What regulation could you push for?

I said it a few pages back and JMarch answered adequately. It’s a free market and you can’t regulate risks people will take.

Why would you EVER allow a stock to get shorted over the total share amount? The risk you take on at that point is insane should people get wind of it.

All social media has done is made it easier to spread this information. Sure many are buying and don’t know why this is happening, but A LOT of people do know. The fact the people do know, has ANYBODY who shorted this completely screwed.

This stock isn’t a pump and dump. That’s not what this play is and don’t let anyone tell you otherwise. This is a “You took on a risk insanely great and got
yourself stuck” play.

Sucks to suck, but anybody who shorted this has has ample time to get out. Smart people did close their positions with massive losses, but other idiots filled their shoes because they thought “this is just a pump and dump and I’ll make a killing on the dump”. They’re wrong, and will be crushed too. The more you short this thing the more fuel you add to the fire.

As of close there were only 350,000 shares available at 53% interest to short. That’s insane.

But today as people who bought in and sell fearing that this is a pump and dump and just want out at a 100% win, more will fill their places. It’s a never ending cycle until anybody who shorts this realizes they can’t win because they’re shorting shares that don’t actually exist.

makes sense, but when does the stock go down though?

[finfangfan]

Looks like today will be another wild one. Nasdaq down and GME up to $475 in premarket. We will be waiting forever for eTrade, etc to load this morning at open.

[finfangfan]

Originally Posted by finfangfan

In the last 10 minutes of trading Friday, I picked up 300 shares of XSPA @ $1.77 using my profits from flipping PLTR. XSPA used to be airport spas but pivoted their business model last year to provide COVID screening at airports. Their stock shot up last year early COVID to $7+ but they’ve struggled to get things together. Friday they bounced 11% and I’m hoping the momentum continues through the weeks/months ahead.

XSPA up to $2.95 in premarket this morning. Apparently it’s another heavily shorted stock and is getting caught up in that. I didn’t know about that when I bought into my small position... I was just buying for the COVID screening at airports concept in the unlikely event it took off.

[monkeymcgee]

Originally Posted by finfangfan

Looks like today will be another wild one. Nasdaq down and GME up to $475 in premarket. We will be waiting forever for eTrade, etc to load this morning at open.

I reopened a smaller position in GME at $300 after the short interest drop never really materialized. I’ll hold this until that changes significantly. As you said, another chaotic opening in store for us today.

[finfangfan]

Originally Posted by monkeymcgee

I reopened a smaller position in GME at $300 after the short interest drop never really materialized. I’ll hold this until that changes significantly. As you said, another chaotic opening in store for us today.

I’m actually going to miss the open as I will be out on an errand. Probably wouldn’t be able to buy/sell anything anyway in first 20 mins but I will probably miss a few great buying opportunities while I’m out but hopefully not too many selling opportunities.

And congrats on once again likely making $ on GME. I was too chicken for that one.