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Topic	Stock Topic 18
red sox 777 01/30/21 6:28:06 AM #46:	As for the AMC short squeeze, GME has a market cap about 5 times as big and hasn't triggered the squeeze yet so I'd guess AMC has a long way to go before really getting into that area. On the other hand, it appears that the funds generally use portfolio margin where their margin calls are calculated not per stock but based on their entire portfolio....meaning they don't get a margin call until their entire portfolio is at risk of wipeout. Which means everything is connected - any stock they are short going up pushes them closer to their limit, any stock they are long going down also helps. And this month it would appear that's just about every stock they are short has gone up and every stock they are long has gone down. https://twitter.com/ihors3 This is the best source I've found for good information about short interest (including explanations of what over 100% short interest really means). I would say there is a lot of risk for longs but much much more for shorts. There's also risk across the market in stocks these funds are long as they sell those - in retrospect I am disappointed in myself for not having sold a lot of my stocks in companies that are not heavily shorted on Thursday. I was pretty sure that the market was going to fall a lot on Friday after having seen this play out Wednesday. I talked myself out of selling on the theory that it would have to fall by a fairly substantial amount to be worth it since it would lock in a short term capital gain and I can get it into long term capital gain area by waiting a few more months. Also thought that I have protection because if there is a market crash from this, GME will moon. But, if the great short squeeze does happen, the market probably falls off a lot more. If it gets to the point where there are major bankruptcies and brokers start having liability, there is a chance of a cascading collapse like that one day -22% move in 1987. Would be an interesting day to see GME/AMC/BBBY/etc +600% and the rest of the market in circuit breaker red territory. My hope is, the financial system has been using the past 2 days to limit their exposure to avoid this kind of thing. It would not be good for the country. --- September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest! <cite>red sox 777 posted [p:950082195] in Stock Topi... [t:79267121]...</cite> <quote>As for the AMC short squeeze, GME has a market cap about 5 times as big and hasn't triggered the squeeze yet so I'd guess AMC has a long way to go before really getting into that area. On the other hand, it appears that the funds generally use portfolio margin where their margin calls are calculated not per stock but based on their entire portfolio....meaning they don't get a margin call until their entire portfolio is at risk of wipeout. Which means everything is connected - any stock they are short going up pushes them closer to their limit, any stock they are long going down also helps. And this month it would appear that's just about every stock they are short has gone up and every stock they are long has gone down. https://twitter.com/ihors3 This is the best source I've found for good information about short interest (including explanations of what over 100% short interest really means). I would say there is a lot of risk for longs but much much more for shorts. There's also risk across the market in stocks these funds are long as they sell those - in retrospect I am disappointed in myself for not having sold a lot of my stocks in companies that are not heavily shorted on Thursday. I was pretty sure that the market was going to fall a lot on Friday after having seen this play out Wednesday. I talked myself out of selling on the theory that it would have to fall by a fairly substantial amount to be worth it since it would lock in a short term capital gain and I can get it into long term capital gain area by waiting a few more months. Also thought that I have protection because if there is a market crash from this, GME will moon. But, if the great short squeeze does happen, the market probably falls off a lot more. If it gets to the point where there are major bankruptcies and brokers start having liability, there is a chance of a cascading collapse like that one day -22% move in 1987. Would be an interesting day to see GME/AMC/BBBY/etc +600% and the rest of the market in circuit breaker red territory. My hope is, the financial system has been using the past 2 days to limit their exposure to avoid this kind of thing. It would not be good for the country. --- September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest!</quote> ... Copied to Clipboard!
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