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Roaring Kitty to testify on GameStop alongside hedge fund managers

reuters.com

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Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#81

Post by alecco »

stereolambda wrote: post #66

Older RoaringKitty YT spreadsheet videos (before he became all about GME and before much of anyone watched his streams) are interesting to watch for a person casually interested in finance. They are very nerdy in discussing his approach to investing, tools etc. and don't present any clear recipes. He had/probably still has a biggish public portfolio of stocks and seemed to base it on financial analysis applying the v…

> ...applying the value investing style. I thought this style is pretty much dead, because market efficiency has increased compared to the times when Benjamin Graham analysed securities by hand

I thouhgt this style is pretty much dead, because the Fed is out of control stimulating the markets. Even purchasing bonds and ETFs. As if they embraced the "stonks only go up" meme.

But what about the US dollar? Hmm...

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#82

Post by rcxdude »

sillysaurusx wrote: post #50
DavidSJ wrote: post #39

Earlier quoted context omitted.

I think the requirements were calculated at the brokerage level and not the individual customer level.

One level up, I think! Think of it like a pyramid: the clearinghouse sits at the top, the brokers are in the middle, and the rest of us dirty peasants sit at the bottom where we belong. The clearinghouse covers 95% of trades on Wall Street. So the clearinghouse issued a decree: "we are no longer able to support opening positions for GME, AMC, and KOSS." Since most brokers use this clearinghouse, that means almost all…

Not quite right. There's the DTC (which carries out 95% of the trades), then there's clearing houses (sometimes a seperate entity, sometimes part of the broker: the larger ones all do their own clearing. e.g. Robinhood has their own clearing house), then there's the brokers, then the traders. The DTC said 'we need 100% collateral on these trades' (probably because they viewed there being a significant risk that someone, somewhere, would not be able to pay up for the trades they're making in a big way), and then APEX clearing (which is the clearing house used by a lot of smaller brokers but not 95% of the market) said 'we can't support opening new positions' because their liquidity would be sucked up by the requirement, blocking most of the smaller brokers. Robinhood did similar for similar reasons independently of APEX, but some other brokers not using APEX could still trade (either because they had more cash on hand or because their customers weren't buying as much of affected stocks).

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#83

Post by sumedh »

ivalm wrote: post #63
emteycz wrote: post #60

Earlier quoted context omitted.

There's no work to be done, the answer is no.

Can you point to a GME like price action of a non-penny stock ticker? Of course we both know the answer is no. Things shot up, things shot down, of course people who bought the hype lost money. There is nothing surprising here.

> There is nothing surprising here.

Then why disable buying and not selling, if things were volatile the exchange could have stepped in and stop the trading. There was really no reason for DTCC to increase the margin to 100%.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#84

Post by drivebyops »

5350-uiop-1130 wrote: post #38

What about Musk making tweets about bitcoin whilst his company has a large investment. Isn't that market manipulation or maybe does not apply to rogue billionaires.

He only tweeted memes about dogecoin. And after the SEC filing about their Bitcoin plans, it makes sense why he didn’t tweet about Bitcoin before it

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#85

Post by AmericanChopper »

BLKNSLVR wrote: post #9

Is this investigating Robinhood's halting of trade? That's mentioned towards the end of the very short article, but nowhere does it explicitly specify what is being investigated and why. The article says this: "The House Financial Services Committee is examining how an apparent flood of retail trading drove GameStop and other shares to extreme highs, squeezing hedge funds like Melvin Capital that had bet against it."…

> very interesting to watch

And potentially nothing more than that. House committee hearings are usually little more than a show for the media. Politicians turn up to get their sound bites, the media gets a couple of photos of public figures looking uncomfortable while being questioned, then everybody goes home and nothing else happens.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#86

Post by onedognight »

sillysaurusx wrote: post #44
voiper1 wrote: post #36

Earlier quoted context omitted.

If they required 100% collateral, why did that mean Robinhood stopped trades? Why couldn't they allow trades with 100% settled funds?

I highly recommend https://youtu.be/4RS4JIEVyXM?t=60 -- I didn't understand any of this myself till watching that. (Still don't! But I'm less confused.) My understanding is that the clearing firm informs everyone "Hey, we no longer support opening positions in three stocks specifically: GameStop, AMC, and KOSS." Literally everyone, including Robinhood, was forced to only allow people to sell GME. Somehow Fidelity was…

> Literally everyone, including Robinhood, was forced to only allow people to sell GME.

Not literally. I was able to buy w/Schwab when it was restricted by RH. I tested this specifically to see if I should change brokers.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#87

Post by thefounder »

zappo2938 wrote: post #74
sillysaurusx wrote: post #44

Earlier quoted context omitted.

I highly recommend https://youtu.be/4RS4JIEVyXM?t=60 -- I didn't understand any of this myself till watching that. (Still don't! But I'm less confused.) My understanding is that the clearing firm informs everyone "Hey, we no longer support opening positions in three stocks specifically: GameStop, AMC, and KOSS." Literally everyone, including Robinhood, was forced to only allow people to sell GME. Somehow Fidelity was…

Fidelity is largest stock holder of GME.

So in the end it can be done when the right people make profit

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#88

Post by rcxdude »

Shacklz wrote: post #76
hntrader wrote: post #65

Earlier quoted context omitted.

Promoting something that you own isn't illegal. Jack Dorsey and thousands of others are promoting BTC while simultaneously owning it on social media. Musk also promotes TSLA and SpaceX to his benefit (since he holds equity). It may be a bit of a grey area ethically since he didn't disclose his ownership until later, but if he was doing it because he really believes in crypto and it's not just a cynical attempt to pum…

> who get paid to flash products in front of their users without disclosing that they're being paid. Which is why it's not just ethically wrong but also illegal in many countries. Why the US allowing such behavior is beyond me.

It is not legal in the US. If you're being paid to show or use something and there's no reasonable expectation that you would be, it must be disclosed. The FTC has guidelines on this and has gotten involved in the larger cases of this happening (such as the CS:Go skin gambling scandal where big streamers were being paid to stream gambling on the site, often a fake version with no actual risk and/or distorted rewards). You'll find most larger 'influencers' are aware of this and take steps to mention when something is sponsored, but there's a huge number of smaller ones where there's little enforcement.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#89

Post by onedognight »

jimminy wrote: post #77
3001 wrote: post #71

Earlier quoted context omitted.

Charles Schwab did not implement restrictions.They had a banner until last week saying that when you log in.Stop spreading misinformation

> “The bottom line is that clients are still able to trade in GME, but we’ve put some restrictions on certain types of transactions in the interest of helping mitigate risk for our clients,” Schwab said Wednesday in a statement.[0] They very much did 3 weeks ago. Not to the same degree as the smaller brokerages, but they still put limitations on margin trading, and restrictions on options. [0] https://www.thinkadviso…

RH kept you from buying GME; Schwab did not. This is a huge difference.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#90

Post by sumedh »

Supermancho wrote: post #20
sumedh wrote: post #13

Earlier quoted context omitted.

> but it feels like there are more important things to be working on right now. Institutions abusing the system is not important?

Important to rehash in political theater? No, it's not important.

Then where is the right place for that?
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