r/wallstreetbets .... is this something to worry about?

[sarginger]

I'm far from an expert trader (hence why I joined a few months ago), but this seems like a fundamental change. What I am referring to is the reddit community's organized efforts to create a "short squeeze" on stocks like BB, AMC and of course GME (which rose from like $20 to $470 in 2 weeks based on nothing to do with the company it represents).

I remember a while back reading comments about Robinhood traders influencing the markets by a "strength in numbers" approach, but never noticed a huge impact. However I feel this GME move has verified their technique of getting their $3million+ (as of yesterday) followers to all go in on a stock to force it to do what they want. In a way combined they have billions of $$ at their disposal, but individual risk is low ($1000?) if all of their members joined in. Why wouldn't this just keep growing?

For the pros on here ... is this something to be worried about for the "average" investor? Do we now need to keep on eye on Reddit as part of an investing strategy?

[AstuteShift]

Nah, far from it. Just don’t chase stocks and just relax

The market of disorder, so far the masses are revolting but soon the contrarians will have the favour and so on

[Eric]

At the Macro level I believe it might be, but probably not for the reasons you think...

I was complaining to a coworker that I need to be a crappy employee and make more trades at work, the market close being right in the middle of my workday has caused me to miss out on some fantastical gains. (I was going to sell covered calls against my BB stock this morning but that option went down by 85% while the regular market for us plebes was closed.)

His reply to me was:

“Your market” closed… The rest is open… you know, the preferred avenues where your prosperity is regulated.

And then I peered into my imaginary crystal ball and saw a future where "My market" as a plebe retail trader closes at 3pm Central (GMT -6:00); but no matter which brokerage I use "my market" (or portions thereof) will also close at random times for having a brokerage account under $10M (pick a sufficiently high number) to protect the interests of the hedge funds and institutions (and Billionaire private investors).



Robinhood was not the only one to deny retail trades today. Charles SchwAmeritrade and Interactive Brokers Group also halted trades on r/wallstreetbets darlings.

[Budge]

I'm far from an expert trader (hence why I joined a few months ago), but this seems like a fundamental change. What I am referring to is the reddit community's organized efforts to create a "short squeeze" on stocks like BB, AMC and of course GME (which rose from like $20 to $470 in 2 weeks based on nothing to do with the company it represents).

I remember a while back reading comments about Robinhood traders influencing the markets by a "strength in numbers" approach, but never noticed a huge impact. However I feel this GME move has verified their technique of getting their $3million+ (as of yesterday) followers to all go in on a stock to force it to do what they want. In a way combined they have billions of $$ at their disposal, but individual risk is low ($1000?) if all of their members joined in. Why wouldn't this just keep growing?

For the pros on here ... is this something to be worried about for the "average" investor? Do we now need to keep on eye on Reddit as part of an investing strategy?

The irony may be Reddit's organised efforts against the short sellers' market manipulation but may land them in trouble. They will be accused of what they oppose - market manipulation. Justice may be with them but the law will be against them.

[AstuteShift]

I’m wondering if the FED and these players will freeze accounts when the market finally corrects. Imagine not being able to buy the discounts. Anything is possible in a gestapo state

[Yodean]

I’m wondering if the FED and these players will freeze accounts when the market finally corrects. Imagine not being able to buy the discounts. Anything is possible in a gestapo state

When the market finally corrects, the FED and the Overlords will want us to buy, so I don't think they will prevent the masses from going long. They might impose different types of limits on shorting assets, though . . . hmmm, didn't this happen in some form way back in 2008/9? Or maybe there was discussion of this sort of approach, i.e. during certain times, only allow the retail investor to go long, and prevent them from going short.

[AstuteShift]

I’m wondering if the FED and these players will freeze accounts when the market finally corrects. Imagine not being able to buy the discounts. Anything is possible in a gestapo state

When the market finally corrects, the FED and the Overlords will want us to buy, so I don't think they will prevent the masses from going long. They might impose different types of limits on shorting assets, though . . . hmmm, didn't this happen in some form way back in 2008/9? Or maybe there was discussion of this sort of approach, i.e. during certain times, only allow the retail investor to go long, and prevent them from going short.

Since the trend is positive, shorting is a disaster anyway. Let’s see what these players will do

[stefk]

https://invezz.com/news/2021/01/28/silv ... -to-metal/

They now want to focus to the silver market. Will this army of little traders be strong enough to win against JP Morgan? The following weeks may be very interesting.

[stefk]

Question: could they create a silver short squeeze, buying en masse SLV without physical delivery?

[SOL]

Question: could they create a silver short squeeze, buying en masse SLV without physical delivery?

Yes, technically they could as they hold Silver bullion though it is held by a third party. As of August 2020, it held over 362 million ounces of Silver. The number has probably surged considerably since then. So if these chaps attack this sector hard enough they could cause some damage.

Note however the bigger trend here is that the Fed is allowing the masses to gain power as the end goal is to kill the banksters. The Fed does not really need them for much longer and so expect more avenues that the banks use to rely on making money to be attacked.

This also is an acceleration of the major culling we spoke a few years ago, where we stated that all the middlemen and the fake top players would be killed. Many of these middlemen think they are more than just glorified brokers because they were allowed to become so fat, but they forget fat pigs are easier to slaughter.

[stefk]

Thanks Sol for the response. What happens with wallstreetbets is incredible, I think this can only happens with Americans. To join their forces not only to say, but to do it together. Here in Europe, such thing would be impossible.
We are too much individualists......

[NoLimit201]

Question: could they create a silver short squeeze, buying en masse SLV without physical delivery?

Yes, they could. The owner of SLV shares indirectly owns physical silver through the iShares Silver Trust SLV ETF which tracks the silver price.

This excerpt from "SLV: Time To Buy This Silver ETF https://seekingalpha.com/article/437874 ... silver-etf" well explains how the SLV influence the physical silver price:

When American stock traders buy SLV shares faster than silver itself is being bought, SLV share prices threaten to decouple from silver to the upside. That would cause SLV to fail its silver-tracking mission. So, the fund managers must step in to offset that excess demand and often do. Keep this in mind.

When investors buy SLV shares faster than actual physical silver itself is being bought, SLV share prices could run to the upside away from actual silver prices. The fund managers will sell new SLV shares to balance the demand. With the new money raised they buy physical silver. When investors dump off SLV shares faster than silver itself is being sold, SLV shares could dip far below silver prices. In this case managers step in and do some buying back of SLV shares. They raise the capital necessary to do these buybacks by selling some of the fund’s physical silver bullion.

[SOL]

The commodities market is a differrent beast as it is so huge, let's see if they can affect it as strongly as they can individual stocks. If the Fed allows this, then it is game over for banksters and it means the Fed wants them dead in less than 24 months

[Yodean]

The commodities market is a differrent beast as it is so huge, let's see if they can affect it as strongly as they can individual stocks. If the Fed allows this, then it is game over for banksters and it means the Fed wants them dead in less than 24 months

A related question: assuming the Fed wins in this war against the banksters, would this affect the security of brokerages, i.e. for all of us retail investors who hold assets in these trading brokerages/banks, are our assets safe?

[SOL]

brokerage accounts are a differrent beast. The Fed is targetting Investment bankers now, then they will move to regular bankers. If they target firms that offer stock accounts, it means they will debut an alternative before attacking them. In theory the Fed could become the first and last lender for everyone. After all they create all the money, why do they need Banks in the age of AI to do a job they could do just as well and in the process con the masses that they love them.