Markets - Commodity / Stocks / Futures / Forex

[Will]

Any thoughts on where the markets are headed? Ive been shorting online retail stocks with high PE's but the lines are stubbornly stagnant.

I also want to short the USD but not sure the best way. I dont love gold, dig it out of the ground to put it back in the ground.
So the obvious answer would be to short the USD against someone elses currency. But whos? Everyone is engaging in helicopter money printing.

I may short it against the AUD as our AUD is backed by resources and there still seems to be a heavy appetite for resources.

 

[lucky]

Any thoughts on where the markets are headed? Ive been shorting online retail stocks with high PE's but the lines are stubbornly stagnant.

I also want to short the USD but not sure the best way. I dont love gold, dig it out of the ground to put it back in the ground.
So the obvious answer would be to short the USD against someone elses currency. But whos? Everyone is engaging in helicopter money printing.

I may short it against the AUD as our AUD is backed by resources and there still seems to be a heavy appetite for resources.

Interesting about the AUD. I did not know its backed by resources. I have not traded currency on forex but hear that is good site. I know there are some etfs like UDN that are short USD using multiple currencies (mainly euro).

Traditional hedges against the US dollar are precious metals like silver and gold. (I like these). But crypto has become very popular now. (That's majority of my portfolio)

I just started buying stocks in march and just plan on holding. Have not shorted anything yet but have been tempted to.

 

[Will]

Backed by resources, as in, the AUD is supported by countries buying our resources. Not backed, per se.

 

[Will]

I highly recommend

Tom Nash

This channel was founded with one mission: to provide you with the tools and insight to navigate the stock market world. On this channel, you will find finan...

www.youtube.com

If people are interested in this space.

He is an actual Financial analyst and not some random youtube kid.

and he shits on dan bilzerian alot, how can you not love him

 

[Mirinquads]

Yall seeing this squeeze on Gamestop happening? Really insane stuff, wallstreetbets from reddit is apeing into this dead stock and squeezing all the massive insitutions that are in the stock. Went from like 5$ to 400$ and might continue

 

[punisherind]

Yall seeing this squeeze on Gamestop happening? Really insane stuff, wallstreetbets from reddit is apeing into this dead stock and squeezing all the massive insitutions that are in the stock. Went from like 5$ to 400$ and might continue

nuts. i dont understand the market enough to figure out what's going on here, but its completely insane lol.

 

[Mirinquads]

nuts. i dont understand the market enough to figure out what's going on here, but its completely insane lol.

Basically whats happening is this:
A lot of hedgefunds and large institutions has very large short positions in the stock. Short positions means that youre betting on a stocks price going down basically -> You thus borrow the shares from someone who has them, hope for the price to go down, then sell the shares back at the currenct lower price and pocket the difference). People have actually shorted the stock at above 100% of the float, so more than 100% of the avaliable shares is sold shorts. (How thats possible is a bit complicated, but basically the stock can be lend out multiple times per stock)
The thing about short selling is that you actually have uncapped as opposed to being long a stock (A stock can only go to 0 and you lose your whole investment, however a stock can theoretically keep going up forever) - This creates the environment for a short squeeze: Basically all the Wallstreet bets guys ape into the stock, causing the stock price to rise - This causes some sorts to have to buy back their positions -> Thus the price rises more. -> Creating this squeeze, where more and more shortsellers have to cover to avoid enormous losses, while people keep buying the stock so it just keeps on raising.

This means that the big boys - Melving Capital and Citron Research for some, are stuck in their short positions, as they are too large to unwind quickly, and people are making it harder for them to get stocks to sell due to the demand for the stocks to buy.
So right now these insitutions are sitting with massive losses on their short positions - and are getting margin calls by their various brokers. This means they have to borrow money to not have the broker close out these short positions at MASSIVE losses (As in, they would go bankrupt if they did) and that's basically what the Wallstreetbets guys are trying to make happen.

So that's the story of how a bunch of reddit idiots are fucking wall streets best traders - It's really a beauitiful thing.

 

[Beelzebubzy]

How many millions of shares that WSB had to purchase is the scary thing.
They must be so exposed. If some get cold feet this will get interesting

I wonder how many GME employees are itching to sell their shares now. This is going to get investigated

 

[punisherind]

its amazing that these reddit nerds were able to unite and cooperate and get this done. and it seems like they are doing it with some other stocks as well now. lol.

so my question is, is there some way for us to profit off the inevitable fall back in price of gamestop and, i think amc theaters and kodak are the other ones? like, can we short it at the current prices, or has the sec put a halt on that? i have to imagine the prices will eventually fall back to where they should fundamentally be trading at.

 

[Beelzebubzy]

Well they beat the system for a day

 

[Mirinquads]

its amazing that these reddit nerds were able to unite and cooperate and get this done. and it seems like they are doing it with some other stocks as well now. lol.

so my question is, is there some way for us to profit off the inevitable fall back in price of gamestop and, i think amc theaters and kodak are the other ones? like, can we short it at the current prices, or has the sec put a halt on that? i have to imagine the prices will eventually fall back to where they should fundamentally be trading at.

We shall see if the theory that the squeeze could get much worse is true. Thing is that they restrict access for a lot of the retailers atm, but when they get money on Friday and are in a position to buy etc, it might get crazy.

Im holding some stock just for the lulz.

I would very much not short it at the moment at least. Very dangerous position to hold. - But maybe at some point down the line

 

[Will]

its amazing that these reddit nerds were able to unite and cooperate and get this done. and it seems like they are doing it with some other stocks as well now. lol.

so my question is, is there some way for us to profit off the inevitable fall back in price of gamestop and, i think amc theaters and kodak are the other ones? like, can we short it at the current prices, or has the sec put a halt on that? i have to imagine the prices will eventually fall back to where they should fundamentally be trading at.

We think very much alike , my first inclination was to join the shorts but after some digging it looks like the short trade is the more crowded trade out of the two sides. Last report was GME was actually 138% shorted. If this is true then i assume for this to happen a large portion of those shorts were naked shorts.

Additional to the above, blackrock is on the long side. So both sides have serious fund management firms behind them.

This has a lot of unwinding to do. Its going to be volitile. If/when the short squeeze does happen, that would be the time to short.
Unfortunately the trading day in america starts at 1:30am for me. I just cant do it, otherwise i would be watching this closely.


Tom nash has been covering. I will post the latest vid below but he has a bunch of them for those interested.

 

[Will]

 

[Beelzebubzy]

DeepFuckingValue (u/DeepFuckingValue) - Reddit

u/DeepFuckingValue:

www.reddit.com

 

[Will]

Ive got paper hands. I bought AMC shares at $12 a couple of days ago watched them dip to $8ish. Sold them at $14.

Im out now, the time to short is coming imho. I wont be partaking because of the time difference but if you can find a reliable and accurate short interest report. I personally would time it in line with short interest dropping to acceptable levels.

This is a game of hot potato and there is going to be a lot of bag holders when the music stops.

 

[Mirinquads]

I would be very very careful shorting these stocks. Besides you can't get shares to short anyway, due to demand from the big boys

 

[Will]

I would be very very careful shorting these stocks. Besides you can't get shares to short anyway, due to demand from the big boys

Im not sure if americans have this, but in australia we have CFD's (contract for difference). Which is basically a bet the share price will go up or down. You can make a bet on a share price going down this way.

 

[Mirinquads]

Yeah that's def the way to go. I think that is options in the US, calls/Puts etc.
If you want some a bit more limited risk wise, i think a solid play could be to short the Russell 2000 index. - It's at a large raise, in large part due to gamestop. It's tracking smaller businesses who hasnt done that well due to covid, and it limits your risk a lot.

 

[Will]

thinking about chasing this....

Worst case you lose 30% of your play ( Corona lows ). Bet accordingly.

Thoughts ?

 

[Will]

Fwiw - The other side

https://www.reddit.com/r/wallstreetbets/comments/l90om0