Board 8 > Stock Topic 30

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ChainLTTP posted...

I wonder what would happen now if we had a Depression-level event in the market. I feel like people are too savvy to ever let that happen because anyone with cash would be buying the dip before it could totally crater.

Yeah, I feel like even if Millinnials and GenZ have very little wealth tied up in traditional assets (land, real estate, retirement funds), they still have some disposable income and comparatively little expenses, so they'd be able to buy all the dips even if older investors grow fearful and pull their money out.

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ChainLTTP posted...

I wonder what would happen now if we had a Depression-level event in the market. I feel like people are too savvy to ever let that happen because anyone with cash would be buying the dip before it could totally crater.

The Fed would not let it happen nowadays. The problem then was that there wasn't much cash floating around in the system; now, the Fed would flood the system with cash.

It's funny how the Depression, run with a free market, did vastly more for the cause of economic equality than leftist politicians ever have. Lots of rich people lost their fortunes in that crash. Now, leftist politicians have no problem with a Fed that protects the investor class at every turn. I'm okay with that because I own stocks but if you are holding cash or bonds, you really are ultimately the one paying for all of these efforts to send the market higher, because it's the value of your money that's getting inflated away.


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CaptainOfCrush posted...

Yeah, I feel like even if Millinnials and GenZ have very little wealth tied up in traditional assets (land, real estate, retirement funds), they still have some disposable income and comparatively little expenses, so they'd be able to buy all the dips even if older investors grow fearful and pull their money out.

I feel like with all 3 of those are things it is rather hard to pull money out in order to buy a dip. Imagine trying to refi your house last March to buy the dip - by the time your new loan has closed the dip is already over!

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So Fintel says that 330% of GVSI volume on Friday was shorted. That's absolutely insane. This was when George tweeted that he has the books and is ready to go pink current. Basically the biggest catalyst for a custodianship before a reverse merger announcement and it's crazy anyone would short a stock after that. Has to be institutions that do no research and just short every penny stock in existence because they win 99% of the time. I am so tempted to try and manufacture a short squeeze here and fuck these guys over.

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I definitely think if you were to do such a thing you should publically say so on a public message board in this topic before you do it

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Who would find this. It would be much more likely to find it on reddit. And WSB had like 3 million members already when they publicly disclosed their short attempt on GME. Obviously hedge funds are paying attention to them now, but I think it's safe to say they're not paying attention to Board 8

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So googling "G**I board 8 StartTheMachine" gets Stock Topic 29 to show up. Lots of specifics needed and not even this topic! But sure, for SEO purposes I won't mention it again. I have no idea if I would have any influence to even make something like that happen. Maybe I'm an active enough part of various stock communities on discord that respect me after my crazy gains, it would be possible to get some whales on board. But I've only made a few posts on the penny stocks reddit in the last year or so since I don't normally trade these, and that's the one I would probably really need to make an impact, I think.

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I think he's thinking more about the legality of it. I'm not sure what you mean by "manufacturing" but it sounds sketchy.

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Oh, I just mean the same thing that's happening in basically every meme stock - no one is buying those because they're funadamentally undervalued; they're buying solely because of the huge short positions. I just mean, bring enough attention to the insane short squeeze potential that's here. That's not illegal or almost every GME and AMC shareholder would be in jail.

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No, please mention it again. Beacuse this is public. I would be very interested in investing based on public knowledge

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Jeez dude you haven't been paying much attention to meme stocks huh

Seriously do you think all of WallStreetBets is suddenly getting arrested tomorrow or what?

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StartTheMachine posted...

Oh, I just mean the same thing that's happening in basically every meme stock - no one is buying those because they're funadamentally undervalued; they're buying solely because of the huge short positions. I just mean, bring enough attention to the insane short squeeze potential that's here. That's not illegal or almost every GME and AMC shareholder would be in jail.

Posting information about short positions is one thing; your post appeared to imply something else? Because you already posted that information here, so by implication there was something else that you might do in the future?

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Okay wow, deleted all my posts in regards to this theoretical thing I probably was never going to do

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Lol what did I miss

Did I miss a money making opportunity?

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I wanted to start a movement against a stock that is 330% shorted but masterplum was like hey man that's not cool when poor people make money so I didn't

he is welcome to describe it in his own words

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Lmao

Really it's just 330% short volume from one day, but I don't think plum or red sox understand the legality of these things. Literally the entire reason the GME people aren't breaking the law is because everything was done publicly. That's the whole thing. Discord is also considered public so none of that can get anyone in trouble for insider trading. Posting on a public forum is actually what you want to do to lawfully organize a short squeeze - private messages are what you want to avoid.

Now you know. Anyway, the squeeze will happen without me and this was just a hypothetical idea. I doubt I ever will do it, but it's tempting to get some discord groups organized for a squeeze.

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Insider trading and market manipulation are separate issues. The SEC has gone after people for pump and dumps and bear raids before as market manipulation.

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red sox 777 posted...

Insider trading and market manipulation are separate issues. The SEC has gone after people for pump and dumps and bear raids before as market manipulation.

Yes absolutely. Pump and dumps are very illegal. And...the guy who is now custodian of GVSI was a scam investigator for a decade - his job was literally combating those! P&Ds require misleading information. If I were to attempt to organize a squeeze, I would be providing honest information.

Once again, the same reason the short squeezes on GME and AMC were legal - no one made any misleading arguments about their value. Instead, they only presented factual information about the short positions.

also the market is incredibly manipulated by the super wealthy every day because they have the money necessary to move markets here's some spoiler text if you didn't know

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But won't someone think of the poor short sellers that make money from selling what they don't own in hopes to profit from companies failing?

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StartTheMachine posted...

I wanted to start a movement against a stock that is 330% shorted but masterplum was like hey man that's not cool when poor people make money so I didn't

he is welcome to describe it in his own words

You totally misread me

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StartTheMachine posted...

Literally the entire reason the GME people aren't breaking the law is because everything was done publicly

I read it as plum was trying to be encouraging in a snide way because this website is public.

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Stocks are on sale today except for AMC.

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Yeah l thought plum was being encouraging in a sarcastic way lol

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Fed meeting is today at 2:30 EST. Market will either dip more or rise!

Should I continue holding AMC or let go nowish?

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Take the gains!

I wonder if it's reached its high

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Bitcoin really struggling to break that $42k resistance threshold. Once that happens, I think we see a crypto bull market again (we'll see how long that lasts).

Fed meeting concludes today, recommendations come around 230 EST.

https://www.usatoday.com/story/money/2021/06/16/coca-cola-shares-dropper-after-christiano-ronaldo-moves-coke-bottles/5293590001/

This has got to be the most dramatic reason for a share drop of all-time.

IDK, there could be dozens of reasons for a share price to drop but people are always quick to attribute it to one random thing.

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Rough week

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Might only stock up today is NET, so close to breaking $100

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ow my portfolio

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Knew I should have put in some money on SQQQ calls. Market always craps when Jerome talks.

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Ive been waiting for an opportunity to get back in since losing $11k, but Ive stayed out because of this meeting.

Thank you Federal Reserve for the green today.

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greengravy294 posted...

Knew I should have put in some money on SQQQ calls. Market always craps when Jerome talks.

I only think of SQQQ after the market goes red and never before when I have a feeling it will be a red day.

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Zachnorn posted...

I only think of SQQQ after the market goes red and never before when I have a feeling it will be a red day.

Just look at the long term chart for SQQQ. This is one of the worst investments ever dreamed up.

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Zachnorn posted...

I only think of SQQQ after the market goes red and never before when I have a feeling it will be a red day.

Market has dipped every time the Fed has talked for like half a year.

That said, this was a real short window type thing since I was only really thinking of weeklies and to scalp while the algos dropped the prices on everything.


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Thing is, the market dipped unilaterally in lock step. Definitely was algos behind it. Once people actually digested what was said...well, it corrected itself.


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red sox 777 posted...

Just look at the long term chart for SQQQ. This is one of the worst investments ever dreamed up.

It's not meant to be an investment, from what I understand. It's meant for short term profits for traders.

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DNN at $1.50! To sell and re-buy hmm...

Zachnorn posted...

It's not meant to be an investment, from what I understand. It's meant for short term profits for traders.

But unless you have a good reason to believe you can time it well enough to overcome the overwhelmingly negative average daily result, a short term trade on this is just gambling at a disadvantage.

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I don't play with the stock market more than "buy stocks/ETFs low, sell them high, get dividends along the way" but isn't that just how shorting is? You buy SQQQ as a way to short QQQ using an ETF and since stocks go up more than down, you're more likely to lose money with SQQQ just as you would if you shorted QQQ yourself.

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Zachnorn posted...

I don't play with the stock market more than "buy stocks/ETFs low, sell them high, get dividends along the way" but isn't that just how shorting is? You buy SQQQ as a way to short QQQ using an ETF and since stocks go up more than down, you're more likely to lose money with SQQQ just as you would if you shorted QQQ yourself.

Shorts tend to lose money on average, but the thing about levered ETFs like SQQQ is that there's an additional problem generated by the goal of matching daily percentage returns and the mathematics of multiplying percentages. Like, if QQQ drops 10% today and rises 10% tomorrow, it doesn't get back to even - it'll still be down 1%. But, SQQQ would have fallen 30% the first day and risen 30% the second day - and it's still down 9%. Much worse than the 3% you'd expect! Over time, these losses are brutal.

How hedge funds use shorts is typically to increase their leverage. Like, if they have $100, they'll invest $300 long and $200 short. This is 5x leverage, but they'll argue that there are only really exposed 100% on the long side because the shorts act to hedge the longs. Of course the hedges don't always work because they aren't in the actual same stocks - they might, say, buy Ford and short GM. In January this strategy blew up on a lot of funds when their short stocks mostly soared and their long stocks fell.

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I don't have any moral issues with leverage as an investment strategy, but greater leverage (ie: debt) theoretically opens the investor up to greater risk. My problem is when life *does* present these hedge funds a shit sandwich, they take a couple bites, realize they don't like the taste, then call the CEO of Robin Hood and pressure him to shut the app down. In a fairer world, they should eat the whole sandwich.

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The Golden Rule at its must potent :^)

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