Stock Market & Retirement Planning

[Afizzle2100]

Well we now know. They will ban retail traders from trading GME, AMC, NOK, BB and BBBY. Those stocks are now in a free fall and the short squeeze is now being escaped while the Reddit bros reorganize.

I’m so aggravated by this. I’m going to take a decent loss, which is fine. But what bothers me the most is that the system is being used in an unfair way, just to protect the establishment.

Thats BS for sure. I didn’t get my account started fast enough.

 

[Iceman!]

Well we now know. They will ban retail traders from trading GME, AMC, NOK, BB and BBBY. Those stocks are now in a free fall and the short squeeze is now being escaped while the Reddit bros reorganize.

I’m so aggravated by this. I’m going to take a decent loss, which is fine. But what bothers me the most is that the system is being used in an unfair way, just to protect the establishment.

Well, So much for Capitalism and the Free Market System.
So the Duke Brothers, Randolph and Mortimer, won round 2.

 

[Qwkz51]

Well we now know. They will ban retail traders from trading GME, AMC, NOK, BB and BBBY. Those stocks are now in a free fall and the short squeeze is now being escaped while the Reddit bros reorganize.

I’m so aggravated by this. I’m going to take a decent loss, which is fine. But what bothers me the most is that the system is being used in an unfair way, just to protect the establishment.

I have a feeling this is just the beginning of civil unrest against the establishment, and shutting down trading on a bunch of stocks is only adding fuel to the fire

Couldn't agree more, I was listening to a Podcast this morning talking about how Amazon is pushing hard against GME. Hopefully they get the full force of the blowback.

 

[Raiderboost]

It's making a rally this morning though. Up to $412 now. I'm almost wondering if this is having the effect of telling someone no you can't do something and all the little guys saying "hold my beer".

 

[TCB2010]

It just dropped $45 its at 369

 

[xThor]

Big sell off day

 

[BuckNasty]

Big sell off day

That's because the only thing retail investors can do in these stocks is sell haha

 

[G-Man]

Its not over yet. Doors may be shut but im not leaving....



but maybe I am just dumb... unrealized losses are just that unrealized....

 

[SHOWBOAT12]

DFV held through $14M of unrealized losses today... I'm impressed.

 

[Golfever]

Saw this today

 

[Nicegy525]

gotta admit, this whole short squeeze controversy has me opening a robinhood account with a little bit of gambling money to see what happens. Ill save my main retirement investing for more secure long term investing. But I may try to play with a little bit. Studying up while waiting for my account to be activated

 

[JB]

Robinhood just announced they are now limiting on 50 stocks and raising capital yesterday. I fear they might go away.

 

[EstebanTornado]

I lost a lot on (on paper) my Apple stock this week, I assume because these hedge funds had to close out positions to pay for the shorts. I just keep writing my covered calls so it softens the blow.

 

[BigDill]

Robinhood just announced they are now limiting on 50 stocks and raising capital yesterday. I fear they might go away.

I think you are spot on. Imagine starting the week anticipating your soon to be issued IPO, and ending the week here. They make their money on their margin service, routing payments, and selling investor data. All of that is weak now because of the lack of trust and the closing of accounts.

Perhaps the poetic justice will be RH going forward with the IPO and it being heavily shorted.

 

[JB]

I think you are spot on. Imagine starting the week anticipating your soon to be issued IPO, and ending the week here. They make their money on their margin service, routing payments, and selling investor data. All of that is weak now because of the lack of trust and the closing of accounts.

Perhaps the poetic justice will be RH going forward with the IPO and it being heavily shorted.

Kind of crazy looking at the list of 50 companies they are limiting. Then this week they said they were fine and then they raised capital.

 

[JB]

CNBC just now has a former SEC branch chief on predicting SEC is studying and will be looking heavily into market manipulation.

There is no chance outside of some shady stuff that the retail investors did anything wrong.

 

[ArmyGolf]

Well we now know. They will ban retail traders from trading GME, AMC, NOK, BB and BBBY. Those stocks are now in a free fall and the short squeeze is now being escaped while the Reddit bros reorganize.

I’m so aggravated by this. I’m going to take a decent loss, which is fine. But what bothers me the most is that the system is being used in an unfair way, just to protect the establishment.

It's complete and utter BS.

If this was happening 1000 years ago we'd all be grabbing our weapons and marching on the castle.

 

[BigDill]

Kind of crazy looking at the list of 50 companies they are limiting. Then this week they said they were fine and then they raised capital.

Who would have thought that, in 2021, I could spend more money at an actual Starbucks with their questionable coffee than I could use buying Starbucks on Robinhood.

 

[SHOWBOAT12]

gotta admit, this whole short squeeze controversy has me opening a robinhood account with a little bit of gambling money to see what happens. Ill save my main retirement investing for more secure long term investing. But I may try to play with a little bit. Studying up while waiting for my account to be activated

Please consider a different brokerage -- Fidelity, ETrade, Schwab, etc.

Robinhood stinks.

Robinhood just announced they are now limiting on 50 stocks and raising capital yesterday. I fear they might go away.

That would be a refreshing outcome. The beauty of America is the "little guy" can choose whether to consume or not to consume.

 

[Crapgame]

Perhaps the poetic justice will be RH going forward with the IPO and it being heavily shorted.

there are typically restrictions for shorting stocks or trading options for a while post IPO

 

[Crapgame]

Well we now know. They will ban retail traders from trading GME, AMC, NOK, BB and BBBY. Those stocks are now in a free fall and the short squeeze is now being escaped while the Reddit bros reorganize.

I’m so aggravated by this. I’m going to take a decent loss, which is fine. But what bothers me the most is that the system is being used in an unfair way, just to protect the establishment.

GameStop Stock Game Got Stomped

Retail flows, clearinghouse margin, short sellers, lawsuits, Roaring Kitty and Nottingham.

www.bloomberg.com

Anyway why did Robinhood (and other retail brokers) shut down purchases of GameStop (and other meme stocks)? Here is a good explanation from Bloomberg News:

One key consideration for brokers, particularly around high-flying and volatile stocks like GameStop, is in the money they must put up with the DTCC while waiting a few days for stock transactions to settle. Those outlays, which behave like margin in a brokerage account, can create a cash crunch on volatile days, say when GameStop falls from $483 to $112 like it did at one point during Thursday’s session.
“It’s not really Robinhood doing nefarious stuff,” said Bloomberg Intelligence analyst Larry Tabb. “It’s the DTCC saying ‘This stuff is just too risky. We don’t trust that these guys have the cash to be able to withstand settling these things two days from now, because in two days, who knows what the price could be, it could be zero.’”
The trouble on Thursday began around 10 a.m., when after days of turbulence, the DTCC demanded significantly more collateral from member brokers, according to two people familiar with the matter.
A spokesman for the DTCC wouldn’t specify how much it required from specific firms but said that by the end of the day industrywide collateral requirements jumped to $33.5 billion, up from $26 billion.
Brokerage executives rushed to figure out how to come up with the funds. Robinhood’s reaction drew the most public attention, but the firm wasn’t alone in limiting trading of stocks such as GameStop and AMC Entertainment Holdings Inc.
In fact, Charles Schwab Corp.’s TD Ameritrade curbed transactions in both of those companies on Wednesday. Interactive Brokers Group Inc. and Morgan Stanley’s E*Trade took similar action Thursday.

And here is the Wall Street Journal:

At least three brokerages said the trading restrictions stemmed from mandates from their clearing firm, which process the securities on the back end after a user executes a trade with their brokerage. Webull Chief Executive Anthony Denier said his platform’s clearing firm, Apex Clearing Corp., notified him Thursday morning that Webull needed to shut off the ability to open new positions in certain stocks. Otherwise, Apex wouldn’t be able to settle the trades, he said. ...
Mr. Denier at Webull said the restrictions originated Thursday morning when the Depository Trust & Clearing Corp. instructed his clearing firm, Apex, that it was increasing the collateral it needed to put up to help settle the trades for stocks like GameStop. In turn, Apex told Webull to restrict the ability to open new positions in order to prevent trades from failing, Mr. Denier said.
DTCC, which operates the clearinghouses for U.S. stock and bond trades, is a key part of the plumbing of financial markets. Usually drawing little notice, it facilitates the movement of stocks and bonds among buyers and sellers and provides data and analytics services.
In a statement, DTCC said the volatility in stocks like GameStop and AMC has “generated substantial risk exposures at firms that clear these trades” at its clearinghouse for stock trades. Those risks were especially pronounced for firms whose clients were ”predominantly on one side of the market,” a reference to brokers whose customers were heavily betting for stocks to rise or fall, rather than having a mix of positions.

Robinhood drew down “at least several hundred million dollars” from its bank credit lines and “said on Thursday that it was raising an infusion of more than $1 billion from its existing investors.” The volatility of those stocks is approaching infinity as their trading volume increases, so the traditionally mild and technical credit risk around settling trades has become real and scary. Brokerages have to put up more money to guarantee against that risk, and also think about ways to prevent the risk from coming true. “Stop buying super volatile stocks” is one obvious way. It has become expensive and risky to be a broker for the meme stocks, so some of them tried to stop

 

[Crapgame]

CNBC just now has a former SEC branch chief on predicting SEC is studying and will be looking heavily into market manipulation.

There is no chance outside of some shady stuff that the retail investors did anything wrong.

are you referring to those posting and trying to manipulate the stock through message board postings, tweets, etc?

 

[Reframmellator]

CNBC just now has a former SEC branch chief on predicting SEC is studying and will be looking heavily into market manipulation.

There is no chance outside of some shady stuff that the retail investors did anything wrong.

are you referring to those posting and trying to manipulate the stock through message board postings, tweets, etc?

I would like to understand how publicly available message board postings differ from a hedge fund manager trash talking a stock on CNBC, other than one is connected and one is not?

 

[G-Man]

I would like to understand how publicly available message board postings differ from a hedge fund manager trash talking a stock on CNBC, other than one is connected and one is not?

That and how does CNBC report that the besties closed out of a position, when in reality they have not. This is proved as the firm provided multiple responses during this and prior talking about how the firm does not publicly discuss active positons. What a crock all the way around.

“Until they became conscious they will never rebel, and until after they have rebelled they cannot become conscious.”

 

[Qwkz51]

From the reddit mindset