WallStreetBets vs WallStreet: It's not about the money anymore • Hacker News Board

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#21

Post by Osiris » Thu, Jan 28, 2021, 2:54 PM UTC

ericmay wrote: post #10

waylandsmithers wrote: post #4

I don't know- there must be institutional players on the long side by now right? Either way, _eventually_ someone will be left holding the bag when the stock comes back down to earth.

Retail traders are literally locked out of buying new shares... they were a scapegoat the whole time. $GME is up 11% as of the writing of this post. Who is buying it? This is actually making me angry to watch. -edit- I had like one share - Robinhood just sold my shares without me ordering it. Dunno what happened there.

I had a pending market order fill at opening but now by brokerage mobile app won't log me in.

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#22

Post by tyleo » Thu, Jan 28, 2021, 2:55 PM UTC

For anyone coming in now, dang’s recap comment provides some resources with background information on what’s happening: https://news.ycombinator.com/item?id=25933543

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#23

Post by dragontamer » Thu, Jan 28, 2021, 2:55 PM UTC

ericmay wrote: post #10

waylandsmithers wrote: post #4

I don't know- there must be institutional players on the long side by now right? Either way, _eventually_ someone will be left holding the bag when the stock comes back down to earth.

Retail traders are literally locked out of buying new shares... they were a scapegoat the whole time. $GME is up 11% as of the writing of this post. Who is buying it? This is actually making me angry to watch. -edit- I had like one share - Robinhood just sold my shares without me ordering it. Dunno what happened there.

I just checked my TD Ameritrade account. I'm able to buy GME just fine (though I didn't hit the "confirm" button).

I know RobinHood messed up here. But... they never had a good reputation to begin with. Its an open secret that RobinHood's entire setup is kind of crap.

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#24

Post by jefflombardjr » Thu, Jan 28, 2021, 2:55 PM UTC

vthallam wrote: post #11

This is market manipulation 101. I hope they pay for it, but I doubt any lawmaker is interested in investigating them.

Care to explain how this is market manipulation?

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#25

Post by guerby » Thu, Jan 28, 2021, 2:56 PM UTC

One thing to know about the stock market is that it gives the real time price of a stock, but also the real time price to set the price of a stock (by matching the order book volume up to the price you want to reach, then maintaining it).

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#26

Post by itake » Thu, Jan 28, 2021, 2:56 PM UTC

waylandsmithers wrote: post #4

I don't know- there must be institutional players on the long side by now right? Either way, _eventually_ someone will be left holding the bag when the stock comes back down to earth.

My understanding is retail investors are buying stock now at $200/share, with the expectation that institutional players will be forced to buy it back at +$200/share to cover their shorts.

This will leave the original holders of the shares (the ppl the shorters borrow the money from) with a stock worth less than $200, but maybe more than their original purchase.

If the retail investors don't "get out", then definitely a few will be caught with the bag, but I think its mostly going to be institutional investors paying crazy prices for this stock.

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#27

Post by boringg » Thu, Jan 28, 2021, 2:56 PM UTC

Feel like the platforms are helping out hedge funds by making it challenging to put more pressure on the short squeeze before Friday. Sounds a bit like a cartel in co-ordinating activity under the guise of "reducing risk exposure" - shepherded on by the Financial media.

Trade itself is no longer on technical merits (except those in early) but have you looked at valuations across the stock market these days -- everything is off given pandemic. So that line of reasoning by all the financial talking heads just proves they don't understand the moment.

It's pretty reckless behavior for sure but its more about rage and control then anything imho.

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#28

Post by [deleted] » Thu, Jan 28, 2021, 2:56 PM UTC

waylandsmithers wrote: post #4

I don't know- there must be institutional players on the long side by now right? Either way, _eventually_ someone will be left holding the bag when the stock comes back down to earth.

[deleted]

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#29

Post by mgr86 » Thu, Jan 28, 2021, 2:57 PM UTC

What I find interesting is that RobhinHood has removed GME, AMC, BB, and other WSB darlings. This immediately caused massive drops before market opening. Why does this read poorly to me? I don't do much trading on RH, but I had been using it to monitor the prices as I passively follow this saga. People are upset, and I get it.

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#30

Post by pmart123 » Thu, Jan 28, 2021, 2:57 PM UTC

tenaciousDaniel wrote: post #8

As someone who is not very educated in finance, I'm curious how to interpret today's events. Is nasdaq/robinhood/everyone else transparently manipulating the market on behalf of hedge funds? Or are these standard mechanisms in place for preventing the stock market from swinging wildly out of control? I don't know if it's standard to completely block trading on one or more stocks.

A bit of both. If you are running a fund and down 50% from the events over the last few weeks, it's your fault. At the same time, stocks shouldn't be moving 100% each day.