Robinhood, TD Ameritrade halt orders on Gamestop, AMC, other "short squeeze" targets (lawyer, claim)
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Silver would actually be an easy game to play, but it's a different game altogether.
In a way, it's similar. The total shorts on GME should be illegal as hell. There were 140 shorts for every actual existing GME stock. How does that work exactly?? Silver has a similar problem, but the method of making the Wall Street elites panic would be different. There are people who will sell you a certificate of ownership of silver or gold or platinum. The certificate specifically states that you can use it to demand that a certain quantity of the specified precious metal be delivered to you. Silver is the most variable and volatile in the market. The problem is, there isn't enough physical silver to back all of those certificates. You have the same problem with all precious metals, but silver is the most vulnerable here. So all you have to do is buy a whole bunch of those silver credits/certificates, then demand that the physical silver be delivered to you. Without enough silver to do this, the price of silver skyrockets as the issuers of those certificates scramble to find enough of the metal to meet the demand.
The elites shrieking "Foul play!!" would have less of a leg to stand on. With about 60% of all US currency having been printed in the past year, the intelligent move is to grab up a bunch of precious metals, real estate, etc. and ride out the coming runaway inflation. A bunch of Wall Street Bets types making a run on silver is just a smart move financially. It will also uncover yet another massively dishonest practice by Wall Street elites. The lack of sufficient silver to back up all the papers in circulation is the vulnerability -- as well as the means to make stupid amounts of money in the process.
I just received a message from my broker. They are requiring 100% margin for Gamestock, AMC Entertainment and Blackberry.
The party may be over.
Despite all the other legitimate outrages discussed in connection with this matter, from a lending and risk management perspective, requiring a 100% margin on these investments at this time appears to be a very rational and reasonable requirement, given the circumstances.
These day traders should be able to buy this stock without imposition, as long as they have the cash to pay for it. However, this whole exercise is creating bubbles around these stocks that are sure to pop here in the not too distant future. There is no reason why anyone lending money to buy these stocks (the rest of the investment other than the margin) should be compelled to expose themselves to the losses that many will surely be forced to recognize when these bubbles pop.
Requiring 100% margin on these stocks at this time is a smart, reasonable and prudent move.
The conspiracy part of me thinks JP Morgan purposely holds a large short position along with a lot of physical to garner interest in the metal. Would anyone care about silver if there wasn't a large short position? Why have they held such a large position all these years? To keep prices low so they can accumulate... Then there's articles like this..
I doubt they will lose money from our interest in the metal. If they are ending shorting they've done for the last 40 years, it might mean a return to a more normal historical ratio to gold. Time will tell.
The stock is NOT "grossly over-priced" relative to how over-leveraged the short-holders are. There's a perfectly rational reason for why it's priced in the immediate term, namely the over-leveraged short positions have created a massive incentive to go long. There's a battle between competing market signals that, believe it or not, actually does relate to the underlying value of the company even if the current price per share does not. But in the here and now, this price run-up provides two invaluable lessons to institutional traders: 1) don't get so far over your skis with your short positions, because 2) there are now millions of eyes watching you and waiting to pounce on your careless risk-taking.
Professional do not carelessly take risks,they do their homework before they buy or sell a stock based on fundamentals.It is the individual traders with Robinhood,Webush,et all who are careless risk takers,to them it is a game,they dont care about PE,cashflow,future earnings,balance sheet,now they are urging each other never sell,always buy.
GME may be trading at $483,but it is not a $483 STOCK ,YOU dont have to be a financial analyst to see that.
Get off the high horse and admit,we are all in it for one reason-make money.
But in the here and now, this price run-up provides two invaluable lessons to Robinhood traders: 1) don't get so far over your skis with your long positions, because 2) there are now millions of eyes watching you and waiting to pounce on your careless risk-taking.
here is a good one-
SHADQ is good old SEARS Roebuck,it has no real estate,only some retail stores and is in bankruptcy.
On JAN 27-29,6.7 million shares,4 million shares and 2 million shares changed hands?
For what??????????
Here is another one-
SIEB Siebert Co which is a discount stock broker, JAN29 th,36 million shares changed hands??????????
It has 30 millions shares outstanding and only 9 million shares float and there is no news.
The stock is NOT "grossly over-priced" relative to how over-leveraged the short-holders are. There's a perfectly rational reason for why it's priced in the immediate term, namely the over-leveraged short positions have created a massive incentive to go long. There's a battle between competing market signals that, believe it or not, actually does relate to the underlying value of the company even if the current price per share does not. But in the here and now, this price run-up provides two invaluable lessons to institutional traders: 1) don't get so far over your skis with your short positions, because 2) there are now millions of eyes watching you and waiting to pounce on your careless risk-taking.
The GME stock is in fact grossly overpriced and the bubble will burst on the Reddit amateurs soon. The shorts also took an overly risky position.
This is a lesson best learned the painful, hard way for them both.
GME short positions have been in place long before the Robinhood gang shows up.
You know how OPEC works,they said yeah we will adhere to the cut,but do they,they cheat .
So NEVER SELL,JUST BUY,will it hold with a million robinhood and Robinhood like traders,when the price starts falling/
if nothing else,broker will sell for you when you cant meet margin call
The GME stock is in fact grossly overpriced and the bubble will burst on the Reddit amateurs soon. The shorts also took an overly risky position.
This is a lesson best learned the painful, hard way for them both.
"Amateurs" makes it seem like they are not experienced or knowledgeable. It is true that most of them are not professionals, but this is driven by a technical analysis that is sound and proven. This is not the first squeeze on WSB. With big financial institutions like BlackRock and other hedge funds jumping onboard with the reddit traders, it will be interesting to see how this plays out.
Without a doubt, people on both sides will get hurt. It will be those who shorted and those who don't sell their position before it collapses.
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