| To: skinowski who wrote (38243) | 1/29/2021 8:42:00 PM | | From: kckip | | | | I worry (no, not really) about the significance due to the gamestop, etc., stuff......What are they really doing? The chart provided indicate that they either have some ulterior gameplan in place or they are goofy <g>
They have to take the other side of the trade, but they aint stupid or insolvent. The opposite of what they say they are doing seems about right. |
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| To: kckip who wrote (38244) | 1/30/2021 9:41:47 AM | | From: skinowski | | | | Yesterday, I posted what I think about it.
Message 33171039
I suspect what happened is that brokerages failed to liquidate hedge fund holdings before they became illiquid. Those hedge funds where very short. When the market moved sharply against them, at some point their margin was no longer adequate. The brokerages had to either get instant cash infusions from the hedge funds — or liquidate immediately. Apparently, they haven’t. They failed to protect both themselves and their customers. So, they engaged in some idiotic, transparent market manipulations.
Again, that’s what I think most likely happened. Can’t think of any more likely explanations. |
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| To: skinowski who wrote (38245) | 1/30/2021 9:50:58 AM | | From: robert b furman | | | | Good Morning ski,
I wonder how much truth there is ti the hoodies were not big enough to turn the market on GME. It was other big hedge funds joining the long positions in a huge way.
Other hedge funds took the positive position and the shorts did not see it coming.
No position but wonder if that is viable?
Bob |
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| To: robert b furman who wrote (38246) | 1/30/2021 10:19:20 AM | | From: skinowski | | | | Not all players were small traders, that’s for sure. In some way or other, some serious money must have joined the game.
As far as brokerages go, they must be prepared for such things. I hope mine are. They should have instantly liquidated all shorts that no longer had adequate margin. As simple as that. By procrastinating, they created the whole mess. The hedge funds that got caught have lost more than they should have - and will likely go bankrupt - and so will RobinHood.
I read that some hedge fund has ownership interest in RobinHood. Also read that the fund which shorted the most was a market maker for one or more of the stocks involved. Not sure how reliable that is. But, it’s possible that there were major conflicts of interest which may have caused hesitation and added to the problem. |
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