What's next after GME? A Discussion.
We are only halfway through the week and it has already been crazy. I don't follow stocks, but the WSB vs Melvin fight on Gamestop (GME) is all over the news.
Two things I would love to discuss here:
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Who is next after GME? Some highly shorted stocks have already shot up to the moon today, including AMC, Express, Bed Bath Beyond, Macerich, etc. While some of those companies do have good fundamentals (AMC and Macerich for example), some are really just junk stocks? How long will this last?
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Will this change the way big time short-sellers advertise their shorts? Will SEC step in and regulate online forums discussing stocks?
Mod Note - See more WSO discussions on GME:
What's next after GME? A Discussion.
several of my posts either didn't make it through, or are in hiatus.
I think
1) several key players will no longer announce their strategy
2) several brokers may restrict customer accounts to prevent this from happening again (as already happened today)
3) in the longer run, there may be additional restrictions by the SEC
edit: apparently the administration is "looking into" this market behavior as well, as reported by several media outlets
I feel like 2 and 3 are a big slap in the face on free market.
I understand that and side with you on this one.
but look at marketwatch and the main article is that Schwab and TD Ameritrade will now block retail traders on a list of securities.
some powerful people made a few phone calls and we are out. that's how this game works.
Engineering a short squeeze is already market manipulation and illegal. Pimco paid a ton of money over manipulating ctd baskets. Just need to enforce what’s already in the law. I bet the sec finds a few medium fish in it to prosecute. Security law always has too much grey area to ever get convictions on someone with good lawyers (Igor ostoyavich, drw) but smaller fish have gone down.
L/S industry would basically be dead with this behavior. Mass market short raids would destroy them. GameStop might be special as I don’t believe they’ve diluted which is the normal way a short squeeze ends - maybe chewy guy in on it.
Option market would also be somewhat dead on smaller stocks. Can’t sell options if an army of retail can attack. Would limit options to only the biggest companies and indexes.
I don't understand what the SEC could even do though. This isn't insider trading?
"Hey you! You can't just buy that stock as a meme! You have to have a smart, educated decision based on 4 hours of DD! You're breaking the law!"
technically, this wasn't illegal. but many of those redditors' life savings are on the line here and many are leveraged to the maxed, even with borrowed funds. a number of private insolvencies isn't in the interest of anyone and they may curtail at least this behavior.
I don't know which methods otherwise were/are illegal or not.
Wall St bets is specifically advertising the trade as a take down the hedge fund squeeze the shorts. Colluding to short squeeze is illegal.
buying stock as meme isn’t illegal.
easy
1) use a stock screener to find stocks with high short interest as % of float
2) remove stocks without large options open interest
3) buy them all
Do you think we'll see more run ups in bigly shorted names (Macerich, accelerated diagnostics, etc.) Over the next few weeks?
I think it’s up to how GME bubble turns out. If it pops badly people might avoid this strategy. If it actually flies to the moon, then who knows what would happen.
Emergence of retail investors as a singular force (ie. Bunch of retail investors collectively agreeing to make certain trades impactful enough to move the market) is a game changer. The dynamics of the market completely changed.
My thoughts are that this new emergence of retail investment is here to stay. But not to the extent where they can single handedly put multi billion dollar funds out of business. They'll just be yet another member of the financial ecosystem, too small to dictate how things go but big enough to pay close attention to.
1) Market makers will adopt a new behavior that will enable these retail investors. If market makers love one thing, it's activity. This is pretty self explanatory tbh.
2) Prop shops will do anything to for this kind of activity to sustain. Also self explanatory.
3) Exchanges LOVE this kind of activity. They are forced to halt trading due to certain regulatory and capacity issues (like their computers literally can't handle the amount of volume). Exchanges will also do anything to make sure this type of retail investing is here to stay. They might try to self-regulate the market by building our products and services that curtail the extremes of retail investors before the SEC decides to kill the party.
4) On the other side, there are some institutional interests who wants to keep the status quo. But these guys are never powerful (in terms of amount of volume they control in the market) nor have enough political clout to stop the change. Public markets are too open.
5) What Regulators would do is a mixed bag IMO. On one side, stock exchanges (all of whom have strong incentives to keep this retail investment party going on), are very very tight with regulators. Often, stock exchanges are primary drivers of certain regulations as well. But all that might change depending on the political climate.
Some administration might be convinced that "curtailing" the volatility might somehow be good for regular people because someone lost a lot of $ and went in debt. I don't think they'll completely kill the party but they'll probably try to disincentivize this type of behavior a little bit through traditional means (raising capital requirements for day trading, limiting leverage on accounts under certain money value, etc...). That's what the government always does when everyone's having too much fun. But it'll take some time until they take action. Regulators move slowly as we know.
Enjoy the party while it lasts (couple months probably).
Nonetheless, retail investors are now a force to be reckoned with.
Based 🚀🚀🚀
...6. Bubble explodes in the near future, because retail investors cannot sustain this level of cooperation for long.
Honestly, it's too early to tell how this "coalition of retail investors" will pan out.
There are lots of interest groups who want to take advantage of this opportunity to influence/educate/guide/"whatever you call it" the retail investors in what they do. Some may have malicious intentions and may get regulators to think "retail investment bad muh". But there are many more players who want the retail investors to be a regular part of the market dynamics.
Again, exchanges LOOOOVE this coalition of retail investors. Market makes absolutely love them as well for all the activity they are generating. Long-term fundamental shops may frown upon this retail movement but surely they don't have enough skin in the game to care.
Only players who aren't happy are probably some HFs who are worried their positions might get compromised.
Heck, you might even see some sort of leadership structure forming among the retail investors (some "smart money" accounts on reddit that leads where the money goes). They might even try to self-regulate themselves once they realize they need to be smarter to actually make money.
My point is, there is just TOO MUCH interest to keep this retail investment coalition going on.
On your third point, the exchanges are actually pretty indifferent to this. They don't make any money from retail trading.
No but they make money from whomever is on the other side of the trade.
I didn't want to point it out before but this is just wrong.
Retail investors don't buy ports from exchanges nor pay exchanges directly in any other way. So you're kinda right? But not really.
Here's a FACT. Often times, Market makers are the ones who actually execute the trades that brokerages put in. Brokerages get paid for handing off the actual trades to the market makers, market makers get to know their counter parties even better, and retail investors get their trades executed in an efficient manner. Win-win-win.(this is particularly true for Robinhood, which has 60% market share for retail investors last time I checked). Anyways, there always is a middle man btw retail traders and exchanges who actually makes the trades. And they pay exchanges to trade.
Simply put, More retail investors = Higher trade volume. Higher trade volume = more money for exchanges. Therefore, More retail investors = More money for exchanges.
I wonder if WSO can pull off something like this? I would assume the average users here have way more to play around with than the $1,400 redditors got.
I second this actually.
We probably don't have enough $ as WSB to move the markets (higher average funds per person but much much less people) but surely we can act as a knowledge sharing coalition of funds.
As long as there aren't any compliance issues, who would say no to little extra $$$?
Can someone tag wso adminis on this?
Agreed, could definitely be a fun idea. Maybe another section for the forum too.
How would this be possible with mandatory hold periods?
Where we droppin boys?!
compliance issues. Thats the biggest problem many of us face. If compliance approves
Would be interesting, we can even piggyback on some of the movements that WSB is creating to multiply our momentum.
WSO hedge fund? I'd let you invest all my silver bananas
I would be soooo down - could you imagine Fox covering this? R/wallstreetbets Vs. Wall Street Oasis
After watching what they're doing to Melvin, I'm not sure I'd want to show up to that vs battle. Apes together strong, and they have many more apes.
https://www.wallstreetoasis.com/forums/wsos-rwsb
Nah, probably too much red tape with compliance to pull this off.
Wall Street Bets probably has more money than you'd think. The median investable assets is probably low, but there are going to be a surprising number of people with a decent number of assets. Heck Elon Musk joined WSB discord a few weeks ago.
On the grapevine, I know quite a few consultants who are in WSB and have thrown in their bonus money as YOLOs (20k+) into GME.
The distribution of WSB is probably 70-80% very low investable assets, 10-30% working professionals with good incomes, 1% whales who like the memes.
I'm throwing around $2mm in there right now and I know at least two dozen members who have more than double what I do who are active. Someone did a poll and estimated the average account is like $6k, multiply that by over 3mm users and you see how dramatically it can pile on.
What you're suggesting is illegal. I think you should focus your energy on finding a good oportunity and sharing your analysis with others who might also agree with your analysis.
long $WSO
https://www.wallstreetoasis.com/forums/wsos-rwsb
$NAKD !!!!!!!!!
Whats next after GME? Well personally, im officially solidifying my choice to pursue dentistry instead of finance.
Yea i'll make more money if I was with you elites, and I would save myself from ruining the best years of my life, socially and financially.
HOWEVER, just by seeing the sheer negative sentiment against Wall Street today, really made me realize what I prioritize more in life.
Yeah the negative sentiment is mostly misguided anger, but still, I think this whole phenomenon is net loss for the traditional Wall Street model in general.
What the gatekeepers of this financial industry fail to internalize, is that their prestige and exclusivity comes at the price of envy and hate from their less polished and less distinguished peers.
Basically, you have one life to live, and imagine giving that life to the Street, for some extra tendies and love from the elites. Imagine.
EDIT: After re-reading this, I sound like I am dogging the entire industry for no reason, and that this post is entirely unnecessary. I deleted my old account, but you guys truly did help me a lot when I was seriously debating dentistry or the IB/high finance track. Most of you wrote me off as another scumbag non-target, and that is reasonable. But a few of you, had a lasting impact on my decision making. You all taught me that you truly can get to wherever you want in life, as long as your willing to pay your dues. Unfortunately, my severely under-represented state school put me in a spot where the dues I would be paying are vastly greater than my more distinguished colleagues. This is at the point I realized my passion for finance may not be realized career wise, but that is completley okay. There is a huge value the polished resume brings to the table when dealing with potential clients, and I fully appreciate that, even though I highly disagree with the model in general. I just think that someone who is as passionate as I am should be taken seriously, without having to go through months and months of brutal cold-calls, and essentially whoring myself out to get the attention of a recruiter. So I chose healthcare, and treated finance as a sidehobby shit posting on WSB for the memes and potential gains. While I was already killing it pre-GME, my net worth has easily come to a level I have never seen before, and I dont even care if I lose it all. Seeing the traditional Wall Street model get blown up, would be enough satisfaction. Yeah, yeah, Plotkin will be fine, I get it, but still, this type of headline making news only scrutinizes the industry further, and I want no part of it. Don't worry though, most of you will probably make way more money than I ever will, and have an insane network, so don't be discouraged from this post. You all know the price to break in, and see the value as much as I did. Good luck to you all, but I am holding GME either to 0 or until I am satisfied with the microscopic impact I made in this historical moment in financial markets.
EDIT 2: how about before you throw monkey poop at my non target self, why don’t you instead, persuade me on why u mad. I said, I’m thankful for you guys for actually helping me out with advice! I’m not a disgruntled non target that got rejected, I never actually committed to recruitment.
In fact, it simply came down to the fact that I just needed to shadow both professions. The prosthodontist welcomed me with open arms, and the other was too closed off. No way I’m whoring myself out on LinkedIn to simply get a 5 minute coffee with an absolute brainlet in a powerful position, just so I could get a CHANCE to see what the job is actually like. Nope, by default, a non-target is not a viable candidate, and if you actually grasp how ridiculous this actually is, maybe you see where I am coming from. All of this for “muh exit opp”, which will ultimately lead to the same menial work politics as any other wagecuck.
Is this what makes you mad? That I won’t whore myself out like the rest of the non targets?
Theres no way to be this blunt without sounding like a typical non-target, I can see that by the comments, but this recruitment process is SO far detached from reality. I am still young and really might be talking out of my ass, but ever since the choice was made, I can hardly find support for regretting it. Hell, I can still shoot my shot if I wanted, but honestly, I realized, most people wont sell themselves to the Street, not because they are too lazy or incompetent, but because its actually a major meme that requires literally no real brainpower you get out of the natural sciences. All that Billions, Industry, Succession on HBO shit is being dramatized for the masses, and watch the trash come piling into this forum. I give it about two years before this sub is saturated with folks much less distinguished than even myself, trying to break in. That's when you know you are facing a dying industry.
This might be the most non-target shit that I have ever read on this site
honestly thought the post would get some more love lol
lmao someone’s mad they didn’t get an offer
Heh
Didn't read your edit. -1.
I was baked and euphoric but to be honest I shouldn’t have added that GME bit. Message woulda came across better.
I just wanna save this for later. Respect for bucking the majority. GME 🚀🚀🚀
Prestigious in their own minds. 95+% of the country doesn't know the difference between retail banking and investment banking. My friend who is in an MBA program today thought hedge funds do what private equity does.
The fact is, there is a near 100% chance that the hedge funds were defeated at their own game by a bunch of nobodies, and instead of taking their lumps they called the ref--who they happen to be sleeping with--to change the rules exclusively to their benefit, and then sent their hired goons on to the mainstream media to talk how it's common for the clearinghouses to halt trading for the benefit of the public, liquidity, blah blah blah. Except, they didn't have a problem clearing sale orders. They seemed to have all the capacity in the world to clear sale orders, which just coincidently was to the benefit of the hedge funds.
Today exposed how the game is rigged. Even I was shocked. I'm a hardcore capitalist and conservative, and even I'm blown away at how nakedly rigged the system is. These hedge fund managers for decades must have been able to pull all kinds of strings to their benefit. This just brought out the corruption into clear daylight.
Thanks for your post, I was quite intrigued reading that.
I agree, hardcore capitalist myself. I don't feel that healthcare should be a right, yet as a hopeful future Dentist, I would be willing to take a pay cut if America truly decided on single payer. I couldn't take that same relative cut whilst having to deal with companies and deals all day.
I know all these prospects on this forum are extremely bullish about their future career, but a lot of wannabe traders and investors are going to naturally be interested in Investment Banking. You bet your ass tik tok will be the catalyst too.
I promise you, this whole thing about Investment Banking and retail banking being hard to distinguish for the average person, will become a thing of the past. Investment banking will end up having to open the gates, and the industry WILL be saturated. The whole premise of ivy leagues being the smartest, and therefore most capable, is about to be massively challenged. At least thats what I think.
Ok now think about. Could Citadel in theory drive insane volume and purchase all their shares as they sell??
<3
I can get behind this. Thanks for your post.
-Why is it ok when bunch of hedge funds gang up on other hedge funds (like they did on Herbalife Ackman shorts)
-Why is it ok when Citadel exploits retail flow to such a ridiculous degree it's not even funny
-Why is it ok for hedge funds to get x10 leverage to gamble and chase momentum around
-If someone at a hedge fund had come to the same conclusion as WSB (that other muppets are balls deep short and have no way out) and made them squeeze, noone would care
But suddenly because it's bunch of loose kids it needs to be regulated, you are not allowed to win.
because the hedgefunds own the politicians and the regulators LMAO. this is wall street, the people who had 0 qualms letting an entire country starve while stealing their money, you really think they'll let the little guy win
IMO if another hedge fund did this then it would be illegal. There’s the pimco precedence for it.
Big issue is it would be very difficult to prove. Especially if they never discussed it in gchat etc. A lot of trading firms record gchat and company phones so if manipulation occurs they can stop it early or have the evidence to shift the blame.
ackman shorter Herbalife and gave a presentation why he thought it was a zero. People can do their own research off of his research and then trade. Icahn did buy but he presented it as a cheap stock and not an attempt to squeeze ackman.
BB may be up next.
can anyone check if their Robinhood app can purchase GME or AMC? stopped working for me.
interactive brokers is still fine and IG as well.
Robinhood isnt letting people enter new positions into those stocks
thanks.
unfair.
It keeps coming on and then going offline for seemingly every shop (TD, Robinhood, Schwab, etc). Feels like they're making GME, AMC, NOK and other a one-in-one out type of situation or at least trying to throttle down the buy momentum.
All the retail brokers have limited trades on the short squeeze plays. This is a massive class action in the making. 🚀🚀🚀
I’ve already seen lawyers taking class action requests.
AAL went up a lot today. I was paper trading risky options and made almost 800% on $20 OTM calls. Its mad
What a pussy.
Yes. The people in charge of the U.S. government do not believe in the 1st Amendment. They will absolutely come after this freedom as well. It will end up in court and it'll be a toss up who wins.
Anyone have a WSO tag for someone at the SEC?
SECfinance
LMAO, wrong SEC Andy ;)![]()
This is reminding me of the unibomber manifesto - the end result isn't looking pretty for the retailers.
This shit they pulled is market manipulation to such a ridiculous degree.
They ban retail from buying, then short more to tank the market, knowing that noone will be around to buy, then allow the shorts to close lower with the scared retail.
It's disgusting, my whole desk agrees which is funny
just gonna leave this here: https://www.highshortinterest.com/nasdaq/
have fun guys and gals, hope you all make some money
Best explanation of what is going on, just going to leave it here:
https://www.shortsight.com/gamestop-shorts-down-5-billion-in-2021/
https://twitter.com/ihors3
He literally said he will allow customers to buy GME again when it goes back to $17... which means he believes he will only let people trade at $17. THIS IS THE EVIDENCE OF MANIPULATION. Only cares about rich getting rich by protecting his customers NOT the ordinary people trying to make little money.
DODGECOIN TO THE MOON. Anyways these people should go to ETH which runs 24/7 and the network is decentralized. THIS IS WHY WE NEED DeFi
UH OH WSO is turning into r/wsb
Sounds like you're scared but i wont throw monkey shit at you. Decentralized finance will be the future in the next decade once scalability issues are solved.
🦍 APES 🦧 TOGETHER 🐒 STRONG 🦍
🔫 Always has been
Robinhood restricts crypto trading as Dogecoin soars 300 percent
https://www.google.com/amp/s/www.theverge.com/platform/amp/2021/1/29/22…
This is the best timeline
This entire thing has made me even more bullish on DeFi and DEXs as the future of finance. Check out Uniswap.
Uniswap is climbing fast!!! 👀🚀🦍
wonder what the impact on Robinhoods anticipated IPO is gonna be...underwriter is gonna have a tough struggle there
Did you see Chamath's tweet? I'm betting not great. They'll have to give their stock away to people who sign up.
Why it only happened on Robinhood?
What's next after GME?
"CCIV! YOU GUYS GONNA MERGE?!? Lucid baby!"
If you know, you know.
$AG - silver about to breakout the coming months. Buy calls if you want to own a helicopter. This is not financial advice.
Love the username lmao
https://imgur.com/a/f3GAOO1
$AG
where we are dropping guys?
soon, when the tendieman comes, to send our rocket into the sun 🚀
Linear Growth: Add x
Geometric Growth: Add 1%..10%
Exponential Growth: x2, x2, x2
$1000 doubled 10 times is $1 million
Teaching people that a 2%OTM sold when 1%ITM Call can make our group stronger
When we are all millionaires we can go after bigger companies
We'll hopefully see more care from funds in overextending themselves.
Short exposure to this degree will never happen again - a case example of fiduciary irresponsibility, 143% short interest and holding heavy shorts in other companies simultaneously: insanity.
This is the same liquidity crisis as 2008 and feb 2018, it will happen again, just not in the same instrument/ asset.
Low liquidity plays are high risk, retail just caught a piece of the pie this time with the long funds buying any liquidity.
Supposedly crypto XRP getting pumped tomorrow morning 8:30am EST. Telegram group with 125k members. Should be interesting. Gonna throw something at it and see if it sticks
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