corduroy
Active Member
Bought 5 GME in the pre market. Just a little more por la causa.
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GME and AMC stock action (out of main)
- Thread starter Electroman
- Start date
Hedge fund body alarmed by retail investor frenzy 'distortions'
Hedge fund body alarmed by retail investor frenzy 'distortions'
Reuters
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“What is dangerous, amid this trading frenzy, is that retail investors have been chasing prices so far above any sane valuation and that many will end up nursing losses,” AIMA CEO Jack Inglis said in a letter to members, who manage $2 trillion.
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Inglis said finger wagging at hedge funds was not new and short-selling is tightly regulated, requiring positions to be published, allowing others to trade against them.
...
Hedge fund body alarmed by retail investor frenzy 'distortions'
Reuters
...
“What is dangerous, amid this trading frenzy, is that retail investors have been chasing prices so far above any sane valuation and that many will end up nursing losses,” AIMA CEO Jack Inglis said in a letter to members, who manage $2 trillion.
...
Inglis said finger wagging at hedge funds was not new and short-selling is tightly regulated, requiring positions to be published, allowing others to trade against them.
...
It's interesting that The Guardian is doing a hit piece on redditors buying silver. The guardian has published many anti Tesla stories over the years, I wonder if the 'shorts' have influence at the Guardian. Too coincidental.
it does smell fishy...and from the surface, that outcome looks like a premeditated centralized decision. but it is not really
the centralized decision was to raise margin requirements to 'protect' a bulk of the entities that make up the centralized system. the impact of that decision may vary across the individual entities
for the short HF, they wont have the cap to commit to leave themselves so exposed to one side...may have to cover a bit, or get cap injection (cohen/griffin) - (also in this case melvin wasnt direct to nscc/dtcc/occ, but rather likely through prime brokers...same concept though)
for RH, they may not have enough capital to simply pledge it to the centralized system (NSCC, DTCC, OCC) to clear and settle their increase in volume, total value, and value at risk (depending on portfolio composition) in stock and options trades from day to da. the decision to raise margin is collective, the formulas used are constant, similar to what thay are for individual, liek RegT margin, or Protfolio margin). the brokers and banks (anyone who has 'customers') run risk mgmt on cust and collective accts just as clearinghouses run a risk parameter across each aprticipants net holding and require them to commit sufficient capital...ongoing
if they dont have enough capital to handle the increases listed above, what are their choices?
limit new exposure? stop trading altogether?
im not defending any of them...its a 0 sum game is all. its likely less conspiracy and more a result of collective CYA...at the expense of removing the customers complete and absolute freedom to trade.
again, this is the way its supposed to work, that doesnt mean all actors are beyond even a hint of doubt
also again, in an environment with no oversight or guidance for scenarios like this, everyone scrambling to protect their own interests. sec / finra didnt say peep until fri/sat a week or so into this, and they didnt even really say anything to this point anyway, just generalities. youd think sec had been defunded, gutted, and neutered for ~ 2 decades..oh..wait
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Have a buy order for 50 chairs at the lower BB. Just in case the bair raid on opening will occur as I feel it will.
Really want to help this cause.
As others have said, it's not only about GME, AMC et al. but about the super crooked hedgies out there. I hope a healthy discussion occurs after we hopefully see more funds BC.
We need some new rules on a global scale (one can dream, right ?).
- Leverage must be reduced drastically, or be forbidden altogehter.
- Naked short selling should be banned.
- Instiutionals should have to disclose long AND short postions.
- Transactions (buys and sells) must be taxed (minimally) in order to reduce HFT and speculation. No tax on gains. (we have that in Switzerland, togehter with no tax on gains as of now).
- This will lead to investing vs. gambling.
Dreaming to much ?? Happy Monday everybody, do the right thing.
Really want to help this cause.
As others have said, it's not only about GME, AMC et al. but about the super crooked hedgies out there. I hope a healthy discussion occurs after we hopefully see more funds BC.
We need some new rules on a global scale (one can dream, right ?).
- Leverage must be reduced drastically, or be forbidden altogehter.
- Naked short selling should be banned.
- Instiutionals should have to disclose long AND short postions.
- Transactions (buys and sells) must be taxed (minimally) in order to reduce HFT and speculation. No tax on gains. (we have that in Switzerland, togehter with no tax on gains as of now).
- This will lead to investing vs. gambling.
Dreaming to much ?? Happy Monday everybody, do the right thing.
JRP3
Hyperactive Member
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JRP3
Hyperactive Member
... aand the order executed at 15:58 CET (must be 10 am in NYC) .. so predictable, and on the rise again.
so I'm sitting on 150 chairs, not selling anytime soon. I guess we oldtimers on TMC really know what diamond hands are... lomg since IPO ; )
so I'm sitting on 150 chairs, not selling anytime soon. I guess we oldtimers on TMC really know what diamond hands are... lomg since IPO ; )
closed.Well done! I bought this morning in Germany @ 310 EUR ~ 375 USD
Seems Short interest is < 60% now.
https://twitter.com/garyblack00/status/1356250551953072128
schwab halted trading at 10:30 EST in GME
@$213
resumed at 10:33 EST
@$235
@$213
resumed at 10:33 EST
@$235
Doggydogworld
Active Member
It's not anywhere near that simple. Even this long thread oversimplifies things, but does hit the high points.
Just remember, you do not actually own the shares or the cash in your margin account. You only own a promise from your broker. This layer of abstraction lets your broker give the illusion of instant trading - press the buy button and in seconds your account shows 10 more shares of TSLA and $8000 less cash. But the actual trade doesn't happen for another 2 days. This convenience adds all kinds of risk. As your broker adds new customers and existing customers pile into a few highly volatile stocks they must supply more capital and/or reduce exposure to those stocks.
It doesn't matter if you personally are creating that risk -- it's the sum of all margin accounts and their behavior that matter. Because all those accounts are pooled together into one big master account.
The tactic seems to be to create a dip, Let the wallstreet autists/retards buy the dip. As soon as they do it, slowly walk the stock down. This not only causes the most ardent followers of the moment to lose money, but also lose faith.
today is full of fake heads. Obviously very unfair, because short sellers can gang up, however, reddit army cannot buy as fast and coordinated.
today is full of fake heads. Obviously very unfair, because short sellers can gang up, however, reddit army cannot buy as fast and coordinated.
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So, I understand there a war going on and we are in the middle of it. So how might this resolve? If the short interest is less than half now compared to early January, I'd guess there is a limit to how much upside there could be.
On the downside i understand there are a lot of never sells, but there would come a point in 1 week, 1 month, or an year, when a good chunk of folks will move on?
Ultimately if GME stabilizes at a level much higher than where it would have been otherwise, that's a positive. If the company can raise some funds at that level, that would be a net economic positive, in addition to a redistribution of wealth from wall St to wsb.
Probably a worthy outcome even if a bit haphazard.
On the downside i understand there are a lot of never sells, but there would come a point in 1 week, 1 month, or an year, when a good chunk of folks will move on?
Ultimately if GME stabilizes at a level much higher than where it would have been otherwise, that's a positive. If the company can raise some funds at that level, that would be a net economic positive, in addition to a redistribution of wealth from wall St to wsb.
Probably a worthy outcome even if a bit haphazard.
It isn't that they can't short, it is that they can only short on the up-tick.
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