[Bradders]

And I reckon "I wanted to bankrupt another market participant" would probably fairly easily pass that test as being illegitimate.

I think the main driver is to make some rocket money.

Well quite. Thinking about it some more, I really can't see how the reddit folks are any better than the hedge fund managers they claim to despise.

[Falling Down]

All this just continues to demonstrate that stock markets have very little to do with the purpose for which they were originally developed.

[petejh]

And I reckon "I wanted to bankrupt another market participant" would probably fairly easily pass that test as being illegitimate.

I think the main driver is to make some rocket money.

Well quite. Thinking about it some more, I really can't see how the reddit folks are any better than the hedge fund managers they claim to despise.

No worse and no better. It's all a game and most of the time pi's are underdogs by their own short-sighted psychology. Fuck the hedge fund shorters - they knew the risk and they took the risk. This time it's funny to watch something a little different playing out, like watching a league 2 side topple the Premier league leaders in the cup. 
Price of GME hasn't dropped yet.. if you put something in at lunchtime yesterday you'd be 130% up by now. Of course it will come crashing down and ruin some unfortunates.


 

[Snoops]

As Pete said it’s a game....stocks and shares is educated gambling.

What is going on now is just a severe momentum trade....momentum trading/swing trading been here since the 30’s

[petejh]

Cornish Metals (CUSN.V) turning into a good story to follow. Currently listed on the Vancouver exchange, they're floating on AIM in February. Their two mines in Cornwall were mothballed but are up and running again, hosting high grade tin which has become a highly sought-after commodity due to various tech revolutions in progress (including chipboards for bitcoin mining machines amongst other uses).
Lithium carbonate another by-product from the Cornish mines, chatter of this to be used in UK's growing EV battery production. Good for the Cornish economy. Tin at a 5-year high.

Price up 50% in the last week or so.

I'm not invested but may look into this and Alphamin (AFM.V)

This guy's a good follow for the details: https://twitter.com/TraderPamplona

[Bradders]

What is going on now is just a severe momentum trade....momentum trading/swing trading been here since the 30’s

I don't think that's true at all, it's nothing more than a pump and dump scheme with an undercurrent of faux nobility.

[Will Hunt]

The wallstreetbets subreddit has been set to private. Not sure what that means other than non members cannot now access it. Perhaps members too? Perhaps it's locked or taken down? Not really familiar with how Reddit works.

[36chambers]

The wallstreetbets subreddit has been set to private. Not sure what that means other than non members cannot now access it. Perhaps members too? Perhaps it's locked or taken down? Not really familiar with how Reddit works.

I'm a follower and I couldn't access it last night. It's back up now though. They've gone from 2M followers to 4M in a week (3M to 4M in the last 24 hours) so I imagine there was a tsunami of posts coming in and a significant amount of spam to deal with too.

[Coops_13]

The WSB driven stocks have been temporarily removed from Robinhood (largest free commission trading platform in US) including GME, AMC, BB, BBY, NOK...

[teestub]

Do you work in stonks Coops?

[36chambers]

The WSB driven stocks have been temporarily removed from Robinhood (largest free commission trading platform in US) including GME, AMC, BB, BBY, NOK...

The big bucks must be cutting deals with Robinhood

[Coops_13]

The WSB driven stocks have been temporarily removed from Robinhood (largest free commission trading platform in US) including GME, AMC, BB, BBY, NOK...

The big bucks must be cutting deals with Robinhood

Same has happened on other platforms now, WeBull, TD Ameritrade, Merril Lynch...

Do you work in stonks Coops?

Nope, occasionally dabble though

[Coops_13]

Now they're all crashing - I think it's the fact that you can only sell, not buy those stocks on these platforms so retail investors are getting scared. Wonder what's going on behind the scenes between HF and platforms... 

[petejh]

Maddest period in the markets ever? At least since the last mad period. Like the charge of the lemming brigade for many private investors. None of this was sustainable, just a game of who's left holding the bag of crap.

Silver spiked today on fear it's next.

[SA Chris]

Equivalent of a Stockmarket Ponzi Scheme

[petejh]

Well that's essentially what a lot of share trading is, a pyramid scheme. Large parts of the financial system the same -  you saw it in action in 2008 when suddenly the music stopped and a critical mass of people realised the true (lack of.. ) value of the assets they were holding. Triggering massive fear and selling. Same happening here but just in a very short timescale and involving mass mobilisation of private investors, rather than massive institutions.. It's just gambling by another name. When intelligent professionals do it it's mostly accepted. When dumb private individuals do it it's mostly frowned upon. Thing is the intelligent professionals and their employers have a much better safety net - brains, connections, bail-outs, capital. The private individuals mostly don't.
Doesn't mean the market doesn't offer investments with fundamental value and potential for sustainable growth. It does and always will. Just those investments get forgotten in the feeding frenzy of greed, and then fear of the loss, at times like this.

[andy popp]

Maddest period in the markets ever?

Nope. Not yet anyway.

[mburke]

I often think these frenzied periods of market volatility, usually revolving around some sort of event are a bit dull. They serve really only as anecdotes and don't tell us much about how markets actually work the rest of the time. People like to shit on efficient markets, but it probably provides a pretty decent approximation to reality

[sxrxg]

  has been great following this today. Trading halted several times, and whilst the value is dropping it appears to be from traders trying to short to bring the value down and people having limited options to buy due to trading platforms stopping trades. Will be interesting in the long term to see what the regulators do as from an outsider's viewpoint it would appear to be blatant market manipulation.

[Fultonius]

Onto things that will more likely affect us all...this big bubble that's being mooted:  https://www.gmo.com/europe/research-library/waiting-for-the-last-dance/

With cash tied up in ETFs (stocks and shares isa), is best to just accept it and ride it out, or reduce tied capital and re-invest later. Feels a bit too much like "trying to predict the market". Realistically, I'm up about 12.5% (which is pretty good considering half of it was only put in in November, the rest in July) at present, but that'll be more than wiped out by any crash...

Could always take it out and pay down some mortgage, hang on to some for reinvesting at the dip? Happy to ride out as it's intended to be long term, just wondering the best plan more generally when a bubble is being called.

[andy popp]

Will be interesting in the long term to see what the regulators do as from an outsider's viewpoint it would appear to be blatant market manipulation.

Maybe, but I'd be surprised if we see any successful prosecutions. Regulatory changes might be a different story.

[moose]

Funny snippet from today's Matt Levine newsletter - a confluence of petejh's interest in metals and mining, and the recent GameStop nonsense bubble:

A tiny West Australian mining company has been caught up in the investing craze surrounding US company GameStop thanks to its ASX code matching that of the American video game retailer.

GME Resources, which is listed on the local bourse with a market capitalisation of just $40 million, is a mining company focused on nickel and cobalt extraction. On Thursday, its shares soared more than 50 per cent to 12 cents, their highest level since 2018, with volumes of nearly $7 million.

[sxrxg]

It appears now that robinhood is closing out people's GME accounts without permission citing market volatility... This is even worse than just not allowing traders to buy.

In other stock news new concept energy shares are up over 600% today...

[Coops_13]

Onto things that will more likely affect us all...this big bubble that's being mooted:  https://www.gmo.com/europe/research-library/waiting-for-the-last-dance/

With cash tied up in ETFs (stocks and shares isa), is best to just accept it and ride it out, or reduce tied capital and re-invest later. Feels a bit too much like "trying to predict the market". Realistically, I'm up about 12.5% (which is pretty good considering half of it was only put in in November, the rest in July) at present, but that'll be more than wiped out by any crash...

Could always take it out and pay down some mortgage, hang on to some for reinvesting at the dip? Happy to ride out as it's intended to be long term, just wondering the best plan more generally when a bubble is being called.

Depends on what your time horizon is. I've just taken out a chunk I had invested for home down-payment (which was already risky given time horizon < 1yr) but I'm happy with the returns I've had on that and saw the bull run as too good to pass up

[mburke]

Worth following for reliable opinions on current finance issues

https://twitter.com/johnhcochrane?s=21