Remember that a market-maker does not care if the stock price goes up or down – the market-maker wants as much trading activity as possible to make money with the bid-ask spread and commissions. I could clearly see you as a top writer on Medium, for example. To me, the big culprit is Robinhood. To learn more about why this is a problem, check out this article on How Robinhood Misled the Poor and Rewarded the Rich. “Coronavirus comes along, and governments worldwide enact lockdowns and shut down the economy… for a virus with a 99.7% survival rate that represents almost no risk to people below the retirement age.”, “Meme’s now drive intrinsic values because concepts such as ‘cash flow’ are outdated”, “Governments then bail out large corporations so that CEOs can become even richer while giving a few crumbs, such as $600 stimulus checks, to the peasants.”. Most recently people have been getting delay messages trying to borrow shares of AMC, yet according to Finra’s numbers they should be plentiful. Morningstar Rating. a) Charge a small commission on trades, like brokers used to do; or. Unfortunately, they generate almost no long-term traffic and no sales, so I can’t do it too often or the lights go out. ? Many people in the media, many people on Twitter, etc. I don’t think a site with “Inquisitions” in its title could ever be perceived as *that* professional…, lets get an article about the rothschilds central banking system that have enslaved every country with usury. Some major hedge funds were "short selling" GameStop stock because they were betting that its price would fall. It is possible, that some retail traders sold, but if you take a look at the Short volume (61 % yesterday with 51,000,000 shares being sold short) and then take a look at the overall sell volume, it doesn't add up. They notify the peasant army on Reddit. I’m just glad he’ll still be more angry at Robinhood than me…. Author: Eamonn Sheridan | Category: News. It’s a nice conspiracy theory, but it’s not the reason for the trading restrictions. Hey Brian, great article. Yes, I think it’s very likely there will be more speculative bubbles in other random assets. I was scared I would miss another dip, so I sold some of my green colored lines to buy $6k more $GME. there tons of new shorting at new highs, why would short interest drop on the most overvalued stock, This is such a good point about the short interest. Then, “an online army of investors” on Reddit joined forces like the Avengers to attack Melvin Capital and other hedge funds that bet against these companies. The problem is that lockdowns do not really work if you look at the data for similar regions where one place tried lockdowns and the other remained relatively open. Ensure that all real businesses die and that all employees lose their jobs. If private individuals want to waste their money on a lost cause, go ahead. And that’s all because retail traders are not Robinhood’s customers: market-makers like Citadel are. The NSCC is not a government agency but an industrial consortium of sorts. So which is it? This is why I’m not an active trader… (just in crypto, occasionally, and that’s enough for me). Rather than make up an explanation that could … This website and our partners set cookies on your computer to improve our site and the ads you see. I’ve seen WSB posts for a few months/year now. Thank you Brian for providing a proper take on the whole situation. You mentioned that Citadel is responsible for 39% of all US listed retail volume, and that Robinhood routes more than 50% of its orders through Citadel. If this is a fight for “justice,” then you should probably ask what justice was served by allowing people on Reddit to be manipulated into trading by much larger hedge funds that took advantage of peoples’ desperation to make money. A few savvy investors realize that GameStop is heavily over-shorted and is ripe for a squeeze. Victory for the populist rebellion! I collude with the company who invested in me, who processes my transactions, to make the world think I have 5 Million GME. But Melvin Capital was bailed out by private companies/individuals, not the government. GameStop Corp., GME - Live Short Interest changes, statistics and charts, Days To Cover (DTC), Cost To Borrow, Nasdaq and NYSE data as well as live Securities Lending data. There is no way for anyone to tell if they’re naked shorts or ladder attacks but it seems to be the case with the data that is available to people. Of course, politicians are too stupid to understand the bigger picture, so they will likely try to “fix” this problem with solutions such as: There is room for sensible regulatory change here. Also, we are not in a bubble because the world’s richest person is pumping a fake asset in an unregulated asset class based on a dog’s meme. It would be even better to look at the retail vs. institutional split, but again, I don’t know who actually has that data or if they would even disclose it. Yeah, agreed on all of the above. Short Interest zu GameStop New (A) tagesaktuell Um die volle Funktionalität der Webseite nutzen zu können, müssen Sie JavaScript in ihrem Browser aktivieren. If you don’t have enough money to trade stonks full-time, one good option is to sell extra body parts, such as your second kidney (why do we have more than one, anyway?). Can you clarify this point – “Therefore, if ~39% of retail volume in GameStop last week – and probably more than that – showed an even mix of buys and sells, day traders were probably not the primary force behind the stock’s increase”. It seams that Citadel is flying under the Radar and throwing Robinhood under the bus, but the after close forced sale of the leveraged stocks to cover their cash reserves instead of a margin call to the stock holder was a poor call on Robinhoods part. Rating as of Feb 25, 2021. Print × Expand. Memes now drive intrinsic values because concepts such as “cash flow” are outdated. Now there’s another chance. See Sirius bank shorting buyouts. This table shows the interest rate that must be paid by a short seller of US:GME to the lender of that security. Some “professional” day traders who don’t trade via retail brokers may have also been involved, but I doubt their volume alone could account for the bulk of this move. The company was following the existing laws and regulations. The more I read and watched other videos about this, the more I felt like my brain cells were dying. No one is selling at this point. We were going to have deaths no matter what, but printing trillions, ruining children’s lives and education, and laying off tens of millions of people was not worth the supposed benefits of lockdowns. I locked in my profits from other stocks AND lowered my average price per share on $GME. It’s OK, if they get upset, I’ll just offer them a free Robinhood trading account or send them some DogeCoin. FINRA enables investors and firms to participate in the market with confidence by safeguarding its integrity. At … I don’t understand your logic. Investigative journalism can be fun, but I don’t have the time or budget to hire a team to do it. The Securities and Exchange Commission could create a system to identify and enable punishment of illegal trading activities, including naked short selling. Please refer to our full. If you look at the point of view of the retail investor, before these apps there was no way at all to trade small if you wanted. These guys came and offered a new service, but they need to get paid. Always happy to avoid the crowds…, Your email address will not be published. Impressively accurate. A decade ago, a Biden confidant tried to stop it. This is what we’re talking about is the practices used by MM that seem untraceable and unregulated, combined with HFT / algo combo to outwit retail investors. The peasants cannot find any jobs, so they turn to day trading to survive. Ensure that all real businesses die and that all employees lose their jobs. The evil hedge fund Melvin Capital, representing a combination of Sauron, Voldemort, and Thanos, aggressively shorted various companies, including GameStop, believing these companies’ share prices would fall. Sure, GameStop’s business doesn’t have a great outlook and will die or have to change (eventually), but it’s still worth something. For years, our government has treated fiscal policy like a joke, the Federal Reserve has treated monetary policy like a joke, and sooner or later, that was going to lead to our market becoming a joke. In conclusion, we should continue the lockdowns and money printing forever. The GameStop Mess Exposes the Naked Short Selling Scam. Were institutions also responsible for their increases? 3. There’s not much data to trust sadly, other than looking at the order book and the volume. In the U.S. markets, it takes two days for trades to settle (“T + 2”), which means that Robinhood is taking some credit risk while they wait to pay or receive cash. Your email address will not be published. Then, Melvin Capital had to cover their shorts by buying shares at much higher prices, which pushed the share price even higher. Where is the additional 40% coming from? That only shows up in the biweekly FINRA short INTEREST reports. No, Ken Griffin did not call Janet Yellen and ask her to order Robinhood to shut down speculative buying. GameStop sank 31% Monday, after rallying 1,600% in January. You are the product! Buying now off the short ladder is buying another shorted stock which they HAVE to buy back from you at WHATEVER price you want. Some of those funds experienced huge losses as a result. Yes, Robinhood definitely deserves some of the blame here, and their perception has fallen so much that they might not recover from this one. Bloomberg, Fintel, and TD Ameritrade all report it as being just over 40%. But what about the other companies like AMC, Blackberry, Nokia, Named, and more? The number of GameStop shares shorted has fallen by more than half in the past week, as shorts have covered their bets. Robinhood is the one that had to post higher deposits because of the flood of trading activity. I recommend following Elon Musk on Twitter and the Wall Street Bets subreddit to get tips for the next meme stock or meme cryptocurrency. The fight between Wall Street and the proletariate isn’t a fight about money as you seem to assume. Melvin Capital almost collapsed not because it was short-selling but because it was doing so in a very stupid and risky way. Someone on WSB posted Finra data showing 220% Failure to delivers are up, meaning people who sold naked are not able to deliver their shares. Make as many young people as possible commit suicide. Gill’s last day of employme I’m literally Buffet. I’m sharing with my friends and family. There’s so much wrong with these points that I’m not sure where to begin. In addition to the most recent short interest data for AMC has figures altered from previous reports of these two companies by Finra. This was primarily an institutional battle, and while some day traders made money, the vast majority will lose money. So now, all I have to do, is NEVER let one of these specific 5 million GME shares out of my account, or the jig is up. Also, consider something like the rules in the Indian capital markets, which limit the maximum net position in any stock to 20% of its free float and also limit the sizes of positions that individual clients can take. Let them call you good boy while you roll over and lick their shoes. They preach trading as much as its users can to just increase the fees Robinhood gets when they sell their data. If you want to be outraged at Robinhood, direct your outrage at the right aspect of the company: the fact that they make most of their revenue from selling “order flow” to market-makers like Citadel. At this point, I think there would have to be some major geopolitical event like a war or invasion or nuclear launch or another pandemic to cause a crash. Or rotate doctors from areas with lower needs to areas with greater needs. Great article. On a final note, would you think that markets would be managed better with transparency and accuracy if done through blockchains via smart contracts? And for the ones who survive, give them enough stimulus money to become full-time day traders.”. Stimulus won’t necessarily work forever. Wouldn’t it be more helpful to look at total volume in Gamestop last week, and then look at what % was purchased in blocks of 5000 vs less? All of this stimulus has to keep pumping it up, but at some point do you think it will collapse? We respect your privacy. Short Borrow Fee Rates. people who didn’t even know what stock was 3 months ago, but now seem to be market experts all of a sudden), are portraying this as some “David vs Goliath” fight between Main Street vs Wall Street. Finra has data that today's volume was 53% percent short, Finra does not track everyone but they track the big ones. Thanks. Naked Short Report - track short selling interest on NASDAQ and NYSE STOCKS, check daily short interest, naked short data and short squeeze stock perfomance nakedshortreport.com You can't be covering shorts (i.e. It’s a fight for justice. Perhaps because of my own personal context, but I think your posts on current events are by far the most enjoyable articles to read here on M&I. But Robinhood does not *execute* these trades. So, Melvin Capital deserved the loss. GameStop New (A) | 50,48 $ Last week, as GameStop (GME) was at the height of its imponderable surge, a reporter asked me why Bloomberg showed that the short interest of GME was 144% of the float. Is the party over, or is it just getting started? Gamestop short squeeze. I agree that hedge funds should never be bailed out by taxpayer funds. Yes, retail investors on Reddit acted as the catalyst, but the order volume and sizes of share blocks traded do not support this narrative. Tomorrow is the next release. But when trading volume spikes, firms like Robinhood quickly assume higher credit risk and most post higher deposits – and they may not have enough cash on-hand to do so. Thanks! Short Interest Reports. Keep up the good work. Short sellers sell borrowed shares in a bet that prices will fall and the shares can be bought back at a lower level. Next, Point72 and Citadel had to step in and bail out Melvin Capital for $2.75 billion because the fund lost so much money on its short positions. Some of them hedge funds getting long, some of it people who were okay losing the money and taking the risk, but still a lot of people who bought when they shouldnt have and didnt understand the risk of doing so. their old position) if over 50% of all shares sold in the past 5 days are sold short. Yes, it has worked to this point, but now the Fed is out of ammo… what are they going to do next, drop interest rates to negative 10% and print $1 quadrillion per month? What I was hoping to see in your article was the games these Hedge Funds use. Yes, that’s true, and it is questionable how the NSCC is set up between different financial firms. "The Street should be worried," said Jamie Selway, former head of … I’m guessing this unnamed European country you’re living in must be Britain, given the sarcasm at the end! And 2021 seems to be off to an even crazier start in terms of geopolitical, health, and financial events, so why not go deeper down the rabbit hole? According to Finra, GME short interest as a percentage of the float is 78.46%. share. GameStop New (A) Aktie im Überblick: Realtimekurs, Chart, Fundamentaldaten, sowie aktuelle Nachrichten und Meinungen. Intoxicating. GameStop Corp Class A GME. Finra’s explanation to the discrepancy was attributed to their internal reporting system. The formula they use to determine margin requirements for a given stock has a “discretionary” parameter that can be changed at will. Things that go up forever are good, but things that die are bad. But then Robinhood caved to public pressure and re-enabled trading but restricted the number of shares per account. That’s because children, for example, eventually grow old and die. But since politicians are the dumbest humans on the planet, we’ll probably get a “solution” that makes the problems even worse. Short sellers lost almost $20 billion on GameStop positions last month because of the squeeze. Companies use the crisis as an excuse to fire or furlough many employees, further depriving the younger generation of hope and meaning. At the same time, a slide could draw new shorts looking to jump on any downward price momentum, Dusaniwsky said. according to what I read. WSB users said, if we start buying deep OTM the call options, we can squeeze them… and it worked like a charm. It is possible that the remaining 70% of retail GameStop trades looked completely different from the 30% here, but that seems unlikely because these represent trades across all online brokerage platforms. Ken Griffin didn’t need to ask Robinhood to delist GME directly, he just could’ve told his buddies at the NSCC to raise margin requirements so high that Vlad didn’t have any other choice. Crypto Market Cap, BTC/USD, ETH/USD, USDT/USD, XRP/USD, Bitcoin, EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CAD, USD/CHF, Apple, Advanced Micro Devices Inc, Amazon Com Inc, TESLA INC, NETFLIX INC, Facebook Inc, S&P 500, Nasdaq 100, Dow 30, Russell 2000, U.S. Dollar Index, Bitcoin Index, Gold, Silver, Crude Oil, Natural Gas, Corn, Bitcoin, US 10Y, Euro Bund, Germany 10Y, Japan 10Y Yield, UK 10Y, India 10Y. GameStop saw a decline in short interest in February. FINRA’s daily short VOLUME number does not correlate with the creation of short INTEREST or open short positions. Yes, true, traffic to restaurants and bars and so on still would have been down, but these businesses could have at least stayed afloat even if they weren’t doing well. If the government had bailed out the firm, I could understand the anger. It’s the best feeling in the world. On another note, what about the other 0.3-2% of people who don’t survive the virus; shouldn’t we ‘do this for them’?
Diy E Liquid Recipes, State Street Global Services Address, You Light Me Up Inside Dance, Equate Gas Relief And Prevention, What Is Bc In Banking Terms, Things To Do Notts, Pink Balaclava Uk,