Clearly it cannot be ignored any longer. When this whole $GME thing started, I had mixed feelings about it and couldn’t quite make a decision one way or the other. On one hand I LOVE the idea of “the little guy” beating the people that they’ve felt have been beating them down for years. At the same time though, my formal education is in finance/economics, and I didn’t see any fundamental reason that could justify anyone spending their hard earned money investing in Gamestop even at a $30 stock price, NEVERMIND a $100-$200 stock price!
But as things have proceeded I’ve realized a few things. People aren’t investing in Gamestop because they think its a great long term investment, they understand that they are risking losing whatever it is they put in (although obviously they’re hoping not to). People are pumping whatever they can afford into $GME (initially, though some of it has moved on to other securities as well i.e $NOK $AMC $BB $SNDL $NAKD, even $AAL).
In my opinion there are a few huge things to take away from the stock market related events of the last few days. Lets get into them one by one (also for what its worth, I’m referring to the average individual as “he” I mean NO DISRESPECT WHATSOEVER TO ANY FEMALES THESE STATEMENTS APPLY TO, BUT, I DONT HAVE THE PATIENCE TO TYPE HE/SHE/150 times throughout the course of this blog post.
- For the first time in recent memory, the “Little Guy” feels like he can win, and he can beat the “powers that be” I.e the Hedge funds/the big money. This is a WONDERFUL FUCKING THING!!!!!! Every single person alive that has access to dollars should feel empowered to participate in the market place, and honestly at the end of the day that’s what leads to an efficient properly priced market. Now please don’t misconstrue my words, I’m not at all saying that I think the current markets for the above mentioned stocks is efficient, it certainly isn’t, but what’s currently going on in the marketplace is a warzone/battleground, where the individuals are proving to themselves, the exchanges and the world that they have a voice. Personally I don’t think its possible for GameStop to sustain a price even close to $55 6-12 months from today, but that’s not necessarily a bad thing, the important thing in my opinion to focus on right now is that the public has access to more information than ever, and as a result they’re not willing to let “Big Money” drive stock prices to either 0 or close to it, because they can see the outrageous shorts placed, and can get together to capitalize on that. If the largest postions in the world on stocks are HUMONGOUS UNATTAINBLE SHORTS, people can see that speak to each other and capitalize on mistakes made my these hedge funds, that NEED TO BE SMARTER THAN MAKING THESE KINDS OF DECISIONS!!!! HOW IN THE FUCK DO YOU SHORT 140% OF THE SHARES ON THE MARKET FOR A COMPANY?!?!?!?!?! Who the fuck signs off on that?! It is virtually a mathematical impossibility to ever be able to cover that. At best, you cover most of it, then I guess have an employee buy some more shares back from you, you compensate him for that via a bonus and then buy them back from him again? But that’s literally the only way you can possibly cover shorting 140% of the stock a company has to offer. Its not reasonable, its not a free open and fair market operating. Its Betting on shit going south, and beyond that its not only betting on shit going south, its betting that you have a staff that is willing to trade their integrity for money. Thats not an open free and fair market. Thats not something we should allow to happen, nevermind bail out when it goes south. But One thing that I highly doubt I will encounter a single person who has at least half a brain to disagree with is this, The more participants you have, the more efficient the market is IN THE LONG TERM. I’d also like to add when I’m discussing efficiency in this blog, I’m talking about economic efficiency. At no point in this post will I be diving into definitions of basic economic terms, simply because anyone whose viewing this page obviously has access to the internet, so I’m not going to dumb things down for the people that understand what I’m talking about, it wouldn’t be fair to them, and if you by chance don’t understand what I mean by market efficiency you know how to use the internet punch it into your preferred search engine and you’ll figure it out. I appreciate you just as much as I appreciate the people that know what I’m talking about, but I see no reason to waste anyones time, and breaking it down for the uneducated on the topic isn’t fair to the people that are educated on the topic, the most I’ll say about that is this: an efficient market is a properly priced market. THE END.
- Hedge funds have been behaving in a manner that is detrimental to everyone outside their circle for years, I’m not willing to pin down an exact date because if I do, someone is going to blow it up in my face and use whatever date I put on it to discredit me, which I have no desire to enable. But THAT HAS NEVER BEEN THEIR FAULT, UP UNTIL NOW!!!! These funds, have a fiduciary responsibility to their stake holders, they have never owed anything to the general public, they’ve been doing their jobs. BUT COVID-19 HIT, and right when it hit, things changed for several reasons, for 1: people had a lot more time on their hands. People saved depending on the individual and their job somewhere between 1 and 4 hours a day commuting. But there was also another HUGE thing that Happened. Dave Portnoy, mobilized “his army” when he was searching for revenue streams to allow him to keep his entire content creating staff despite spending on ads cratering. And he did that with 2 things “DDTGG”, his explanation was “its Davey Day Trader Global, the extra G is because we’re THAT GLOBAL” and the unboxing he did with hundreds of thousands of views on every damn one of them,
Dave Portnoy is an asshole, he always has been, and probably always will be, but he’s an asshole in the nature of this page, the understanding that being an asshole isn’t necessarily a bad thing. THE WORLD NEEDS ASSHOLES! It aint all sunshine and roses, reality matters!
Portnoy started the DDTG bandwagon and it took off like fucking wildfire, he was ridiculed daily by almost every major media outlet that wasn’t named the “Tucker Carlson Show,” but he did everything he could to empower the “common man” to get into the market. Theres money to made, why can’t the regular joes be making it too? Who says the money to made in the market has to belong strictly to the “big dollar funds?”
3) ****Cue this week!!!!::::
So this week, reddit bands together, they see an astronomical amount of shorts in play on a stock ($GME) a number that cannot ever mathematically speaking be fulfilled, unless the market agrees to bow down to the Hedge Fund “Big Money” and allow them to tinker with the books. Reddit came together and BEAT THE FUCKING BOOK! They used public record, readily available data to determine that a stock was shorted so hard/heavily that there was not only no way the big money could win, but that there was no way the big money could even come remotely close to breaking even if anybody jumped in on the other side of their bets.
4) Little guy is WINNING:so all the little guys banded together, they jumped into long positions on $GME and caused “Melvin Capital’s” short position (shorts are a scary fuck, they can be profitable, but also expose you to a level of risk that doesn’t have any cap to it, I learned that at 19 years old in school, apparently the dumbasses running these funds didn’t get that same education despite the fact that they spent another 2-3 years going to and paying for whatever bullshit schools they went to, so they thought these were safe bets. The “Little Guy” saw what was going on, shared it with everyone else, and helped all the other “Little Guy’s” exploit an idiotic position. Which pushed the “big money into a “short squeeze” again not going to get into definitions of terms with this blog, anyone able to see this blog also has access to the internet and looking up what different terms mean, but suffice it to say this was not a good thing for the big hedge funds that shorted more than 100% of $GME’s shares.
5) Earlier today robin hood and several other retail level investment brokers froze purchasing of $GME and other stocks promoted by r/wallstreetbets but maintained your ability to sell said securities. This has led to a revolt, the research has been done. Melvin Capital was one of the biggest firms who overly shorted $GME, and was about to be bankrupted by the rise in $GME, they got bailed out by Steve Cohen and CITADEL, Cohen swears its because he trusts the management at Melvin, but honestly its pretty clear its because the guy running Melvin is one of his proteges. Shortly thereafter all of the other bullshit went down, Melvin got bailed out, not because they caught a bad break but because they made bad bets but had friends in all the right places. Right after Citadel bailed about Melvin capital to help them cover their short positions, it became VERY PUBLIC KNOWLEDGE THAT ROBIN HOOD, GETS 40%+ of their revenue from Citadel, which again I wouldn’t have a problem with if everything were open and above board. But it wasn’t, and a few hours after Citadel covered Melvin and all of their short positions, Robinhood, whose primary income source is Citadel, halted trading of $GME, $BB, $NOK, etc basically all of the overly short positions that /r/wallstreetbets were exploiting were no longer available for purchase via their app. BUT all of these positions were still able to be sold. In my honest opinion I don’t believe there has ever been a more open/apparent/obvious example of stock manipulation in history.
5)Finally, took me long enough but lets finally get into the silver linings that all of this nonsense has led to:
- The Little Guy finally feels like they can compete with “Big Money” and WIN, The public understands it now, the gates have been opened. And the responses from most individuals in the last 24-48 hours haven’t given me any indication that they’re willing to give the power back up. #HOLDTHELINE #DONTSELL #THEYWANTYOUTOSELL
-Individual investors no longer feel like they have no shot at profiting in the markets because they’re not “big enough,” They no feel like they can beat the market, if they come together. (The Numbers are a different scale than hedge funds, far more people far less dollars per person, but the effect has now been proven to be effective!(
-I Dont know how old anyone reading this is, but I can say without question this nonsense robin hood did earlier today to support Citadel, and maintain their own profit base, has managed to drum up more bipartisan anger than anything I’ve seen IN MY LIFETIME!!!!! This nonsense has caused Dave Portnoy aka El Presidente aka Stool Presidente, aka StoolPres who does his best to avoid getting into political discourse like the plague (founder of the Barstool fund which in my opinion is one of the best short term charities that’s ever existed over $31,000,000 raised in a month and well over 180 businesses saved, every business they take into the fund they’re signing on to support until the business is allowed to open up again at full capacity) who has previously duked it out on twitter with AOC over bullshit unions. AOC whose as far left as left can ever be, and Ted Cruz whose as constitutional a conservative as we will ever find, have all found common ground on the fact that we cannot allow “Big Money” aka hedge funds to dictate how the markets operate. Thats THREE HUGE FIGURES, 1 Apolitical, 2 others who could not be on more opposite sides of the political spectrum all coming to an agreement on this issue!
If you’ve been following any of this whatsoever you’ve also seen that, the “Little Guy” isn’t even considering backing down.
THATS THE SILVER LINING!!!!
We’ve finally found something that EVERYONE who hasn’t been a part of the political machine long enough to get sucked into it agrees upon!!!!!!!
We’ve finally found something that makes the “little guy” feel like they can play the game and beat the “big money” that for the last far too many years, seemed like belonged to the rich.
I honestly believe, this is the beginning of the end for the market’s existence the way we’ve known it for the past 50 years. Individuals coming together can have at least much impact as Hedge Funds. Granted when you’re talking random individuals instead of multimillionaires, it takes more, but that’s different than I being impossible to play the game.
I also firmly believe that anyone who sold their shares in any of the /r/wallstreetbets stocks today, is guilty of conforming to the system. I Don’t think that 6-12 months from now there’s much chance that $GME is still trading at anywhere near $100, but I do think there is currently enough momentum to keep it fairly steady for at the very least 2-3 months, and when companies like robin hood closed down activity EXCEPT for sales which is the most blatant market manipulation to drive down stocks I’ve ever personally witnessed and then we saw “#HOLDTHELINE” TRENDING on twitter, anyone currently holding stock in any of these companies would be insane to sell it when they’re forced by their broker. Shits probably going to hit $500 by March, and then gradually make its way back to a reasonable price.
BUT WE HAVE FINALLY:
Found something that not only both parties can agree on but also something people outside politics can agree with both parties on!
Shown the individual that if they act with other like minded individuals regardless of their party they can not only compete with but can even defeat the “big players” that have been scaring the little guy out of the market for ages.
I personally don’t see any of these r/wallstreetbets stocks trading anywhere near these numbers 6-12 months from now, but I also don’t think any of them need to. If they continue to crush the “Big Money” short positions for a few months the entire stock market will be changed for years to come.
****I personally at the time of publication hold no positions in any of the equities listed in this post, and AM NOT PROVIDING STOCK ADVICE TO ANYONE nor, do I accept any accountability for the results of positions taken by anyone as a result of this post.