Stock Market Chat

[FGG]

It pumped because of another Elon Musk tweet, as far as I'm aware.

It's actually much more complicated that.

The way I understand it is basically, a bunch of Redditers on r/wallstreetbets (really) were egging each other to buy GameStop stock. Enough of them did this on Robinhood that groups that buy Robinhood data and use it for algorithm trading also bought massive positions on the sudden trend (Citadel I think is one). This caused a massive short squeeze as large investment funds tried to quickly cover. The same thing is now happening with AMC.

Thinking about buying a few shares of VIX actually but I am not sure. Thoughts?

 

[Ed209]

It's actually much more complicated that.

The way I understand it is basically, a bunch of Redditers on r/wallstreetbets (really) were egging each other to buy GameStop stock. Enough of them did this on Robinhood that groups that buy Robinhood data and use it for algorithm trading also bought massive positions on the sudden trend (Citadel I think is one). This caused a massive short squeeze as large investment funds tried to quickly cover. The same thing is now happening with AMC.

Thinking about buying a few shares of VIX actually but I am not sure. Thoughts?

Yea, I actually looked into this in more detail because of the press it's been getting. I was going to add more info but you've already done it.

This is essentially market manipulation which is common, unfortunately.

We were talking about the AMC shorting situation just yesterday in our investment group chat. That's good payback, imo. Those who were trying to short it into oblivion have had a rude awakening.

I personally wouldn't buy into VIX, but that's my preference. I don't see anywhere near enough potential upside to get me excited.

Take a look at the monthly chart:

The RSI on the 14 and 30 day is just above the middle. My risk profile sees this as kind of a 50/50 for a minimal reward; there are far better opportunities. This is just my opinion, though. It isn't something I would go for, but you're not me, which is probably a good thing

 

[Juan]

The GameStop rally has been amazing. It is awesome that individual investors were able to launch a coordinated action triggering a short squeeze.

 

[linearb]

It's actually much more complicated that.

The way I understand it is basically, a bunch of Redditers on r/wallstreetbets (really) were egging each other to buy GameStop stock. Enough of them did this on Robinhood that groups that buy Robinhood data and use it for algorithm trading also bought massive positions on the sudden trend (Citadel I think is one). This caused a massive short squeeze as large investment funds tried to quickly cover. The same thing is now happening with AMC.

Yes and no. What's going on now sure looks like a gamma squeeze, but it also seems like there is as much desire here to "stick it to the hedge funds" as there is to make money. That's got to be the only reason the "wall" is holding at ~$350 a share or whatever. I don't think this kind of thing has happened before and it's been really amusing to me to see the protestations from Wall Street.

I hate Reddit stockbros in a different way than I despise hedge funds, so for me this is hilarious to watch from the sidelines, and the best outcome is that a few hedge funds massively eat dirt before the whole house of cards comes crashing down (because GSE is not, vaguely, a $24bn company).

Thinking about buying a few shares of VIX actually but I am not sure. Thoughts?

doesn't seem like a bad index to pick given the state of the markets, but I wouldn't put any money into markets right now if I couldn't afford to light it on fire. Of course, then then question becomes "what do?" since bank interest rates are almost meaningless.

I haven't changed my long term investment strategies since COVID-19 started but I am in stuff for a long enough haul that I'm basically ignoring how utterly detached from reality the markets are.

It's not just the financial and crypto markets; I happen to have a couple copies of an old Magic: The Gathering card that were worth $400 5 months ago and now they are selling for $1110. No one knows where to put money and crypto nerds are buying out old magic cards.

 

[Deamon22]

The whole thing is pretty hilarious to watch. I jumped in on it (not GME) from my fun trading account with a small amount. If I make a profit, that's great, if not, it was pretty exciting and I learned a bunch.

 

[Croaker]

All the brokers are shutting it down because the plebeians had the audacity to challenge their betters.

 

[Ed209]

They have deleted the buy button on the Robinhood app. Unbelievable. They lose for once, and it appears they have gone crying to the SEC about it. Shows how rigged the game is.

 

[FGG]

They have deleted the buy button on the Robinhood app. Unbelievable. They lose for once, and it appears they have gone crying to the SEC about it. Shows how rigged the game is.

The SDNY doesn't mess around. Robinhood possibly going to get sued into bankruptcy over this.

 

[Ed209]

View attachment 43056

The SDNY doesn't mess around. Robinhood possibly going to get sued into bankruptcy over this.

The irony isn't lost on me that they are called Robinhood, considering the rich lost out to give to the poor (relatively speaking).

You're right, though. There will be a real shit storm over this.

 

[Greg Sacramento]

Traded AMC And GME for profit this week. I've traded both stocks last year long and shorts weren't not a problem in trading. I spent more time with trades in the last week with my own game plan. I prefer my own investing methods. Bought GBR yesterday and sold today over a thousand percent gain.

 

[another sean]

Traded AMC And GME for profit this week. I've traded both stocks last year long and shorts weren't not a problem in trading. I spent more time with trades in the last week with my own game plan. I prefer my own investing methods. Bought GBR yesterday and sold today over a thousand percent gain.

Same, went back into GME a couple of days ago when it was on sale and sold today near the ATH at $460 so up another 360% before it bombed. Then got more at the bargain price of $150. Already doubled in after market and expect a pop gap up at 1am. What a ride (emoji rockets). I like this stock.

Nice move @Greg Sacramento on that GBR, congrats! How did you find such a great play and what convinced you to go in?

 

[Greg Sacramento]

Same, went back into GME a couple of days ago when it was on sale and sold today near the ATH at $460 so up another 360% before it bombed. Then got more at the bargain price of $150. Already doubled in after market and expect a pop gap up at 1am. What a ride (emoji rockets). I like this stock.

Nice move @Greg Sacramento on that GBR, congrats! How did you find such a great play and what convinced you to go in?

Nice trading. You caught the highs and lows.
On GBR - Our new President made five energy decisions in last week that make this set up certain.

Thinking about buying a few shares of VIX actually but I am not sure. Thoughts?

I also think a market correction is about to happen. I mentioned UVXY on another thread, but there's safer ways for protection. If you are interested, I'll give you a list of investment choices.

 

[FGG]

Absolutely, @Greg Sacramento. Let's hear your thoughts.

 

[Greg Sacramento]

Silver miners - but they won't go up 14X like UVXY did last March. UVXY then came back down hard. EXK - a silver miner has good potential in any market/economy that we'll see this year and for the next few years. Biotech should hold.

 

[FGG]

Silver miners - but they won't go up 14X like UVXY did last March. UVXY then came back down hard. EXK - a silver miner has good potential in any market/economy that we'll see this year and for the next few years. Biotech should hold.

I would have to sell something to get EXK (or VIX). My choices would be NVAX (I did end up buying some), DRRX or DM. I have some FREQ too but I'm not selling that atm. I would be selling any of those at a profit. Would you sell any of those for EXK?

 

[Ed209]

I would have to sell something to get EXK (or VIX). My choices would be NVAX (I did end up buying some), DRRX or DM. I have some FREQ too but I'm not selling that atm. I would be selling any of those at a profit. Would you sell any of those for EXK?

Take a look at Cardano and what they are trying to achieve in the world. I think you'd like Charles Hoskinson as a person as well. He has good morals and a proven track history. I invested in him, to be honest.

In March, they are launching Goguen, which is the next stage of their platform where other businesses can build applications on their network. It will be a pivotal moment that has been in the works for years.

They have always taken the academic route, so are involved in publishing papers that are peer-reviewed to push the science forward. I like their integrity.

I realise this isn't for everyone, but it's worth a look.

 

[Ed209]

Skip to 13 minutes in and it'll give you a rough idea. There are better videos but it would take a while to find them.



22:50 is worth listening to, and the rest to be honest to get an idea.

There's a lot of potential upside in this project.

 

[Juan]

It's not just the financial and crypto markets; I happen to have a couple copies of an old Magic: The Gathering card that were worth $400 5 months ago and now they are selling for $1110. No one knows where to put money and crypto nerds are buying out old magic cards.

Hahaha hillarious...

On a broader scale, could the Wall Street rally be sustained on individual investors betting on the stock market without knowing what they are doing?

I mean, considering the economic crisis, it is quite shocking to see that the US stock market is breaking record highs.

 

[Greg Sacramento]

I bought NVAX at $5 a share early in year and sold around $155. I'm not a fan at this price. I had traded that company for years. I posted this earlier in this thread along with other earlier thread posts on NVAX. I also posted earlier in thread on VIX - UVXY.

@FGG - The idea of safer investing is to get in before others. Be glad to assist.

 

[another sean]

Hey @Ed209, do you have any opinion about the XLM coin?

 

[FGG]

Hahaha hillarious...

On a broader scale, could the Wall Street rally be sustained on individual investors betting on the stock market without knowing what they are doing?

I mean, considering the economic crisis, it is quite shocking to see that the US stock market is breaking record highs.

People are waking up to the idea that the market is not based on the economy anymore. It's a casino for billionaires.

Just think of the fact that Melvin Capital's losses on GameStop made Pinterest shares go down (because they had to sell some of their holdings).

It will be interesting to see how the curtain being pulled back changes investing.

 

[linearb]

I mean, considering the economic crisis, it is quite shocking to see that the US stock market is breaking record highs.

it is, until you look at global markets and ask "well, okay, the US stock market is clearly detached from reality, but... where else am I gonna put my money?"

Many EU banks are negative interest, the price of gold and crypto has already beyond spiked. If you're lucky enough to have money to invest in January 2021, what do you do with it?

 

[FGG]

I bought NVAX at $5 a share early in year and sold around $155. I'm not a fan at this price. I had traded that company for years. I posted this earlier in this thread along with other earlier thread posts on NVAX. I also posted earlier in thread on VIX - UVXY.

@FGG - The idea of safer investing is to get in before others. Be glad to assist.

I just sold NVAX now. It popped up about 50% since yesterday. So now I guess I have some funds to mess with. I will look into some of the other suggestions on this thread for where to put some of it.

 

[just1morething]

I bought NVAX at $5 a share early in year and sold around $155. I'm not a fan at this price. I had traded that company for years. I posted this earlier in this thread along with other earlier thread posts on NVAX. I also posted earlier in thread on VIX - UVXY.

@FGG - The idea of safer investing is to get in before others. Be glad to assist.

That's a hell of a return. It would have been nice to have 1000 shares.

 

[Gabriel5050]

I put some pocket change into GME because I have no idea how the stock market works. I would never put any money I actually need into this stuff. The way I see it, it's just fancy, legal gambling.

 

[Greg Sacramento]

Be careful with buying today, as the markets are presently melting down - concern shown by @FGG and self yesterday.

 

[Ed209]

Hey @Ed209, do you have any opinion about the XLM coin?

I used to own some Stellar, Sean, if you go back you'll see me mention them. It's a fork of Ripple and shares the same founder in Jed McCaleb. It is a decentralised banking network which aims to bank the unbanked, and it's fast. There is institutional interest and I like it, personally. The only reason I sold is because the SEC heat that's currently on Ripple spilled over onto Stellar and put a strain on its price. Since I sold, however, it has doubled.

I still like Stellar overall, it has potential.

 

[Juan]

Many EU banks are negative interest, the price of gold and crypto has already beyond spiked. If you're lucky enough to have money to invest in January 2021, what do you do with it?

I'm mostly keeping my savings. I barely invest right now. I think it is very risky and at some point there is going to be a sharp collapse. I have been investing since 2005.

 

[linearb]

I'm mostly keeping my savings. I barely invest right now. I think it is very risky and at some point there is going to be a sharp collapse. I have been investing since 2005.

I think there's likely to be a massive "correction" relatively soon, but I am saving for, hopefully, 20-30 years down the line, so I'm not thinking about the current boom/bust too much.

Still, if we can find a way to pay our mortgage off more quickly, that will be nice: having secured property in a relatively climate-change and social-unrest proof zone seems like a very good thing in this modern world, but as of now the bank still owns 80% of it (or, 67% of it, if I value it at what probable market value is now compared to the town valuation... but I try to not think about that because as soon as the town comes and does that reassessment my taxes will go up a thousand dollars plus a year )

 

[Juan]

Still, if we can find a way to pay our mortgage off more quickly, that will be nice: having secured property in a relatively climate-change and social-unrest proof zone seems like a very good thing in this modern world, but as of now the bank still owns 80% of it (or, 67% of it, if I value it at what probable market value is now compared to the town valuation... but I try to not think about that because as soon as the town comes and does that reassessment my taxes will go up a thousand dollars plus a year )

I honestly think that the nice move for someone living in the US is saving up like crazy and then moving to a cheaper country. Retired people from the UK have been doing this for decades and it is a great strategy. If the person is able to work from home (IT, computing, web services etc) that would just be the icing on the cake.

As you, I am in favour of not having debt even if interest rates are so low. I have zero debt right now, own my apartment etc.

I have been - superficially - reading about dropshipping and SEO strategies, and all those business people in America seem to do online. It seems sort of technical and risky to me, and Spain is a NIGHTMARE as far as taxes and regulation are concerned. Are these online businesses really common in the United States?

I think someone from Tinnitus Talk, some member, traded stuff on eBay and the like for a living, others packaged things for Amazon. It seems awesome to be able to live off that, and I would like to learn more.