03:00pm- $8.61 (optimism is high)
03:30pm- $8.28 (optimism is moderately high)
03:50pm- $8.01 (very nervous but buying as much as I can afford)
03:55pm- $7.86 (confidence is relatively low but im still buying)
03:58pm- $7.94 (confidence is low but we have a chance and we are pushing)
Close- $8.01 (the moment hedge funds realized it was game over)
04:30pm-05:30pm (barcoding and victory laps)
*Disclaimer: Anything contained within this article is not financial advice and any decision you make should be checked by a professional financial advisor before executing
Some of you might be reading this thinking what are you talking about? So let me explain.
Originally, as a retail investor I was severely upset with the direction of the market. I had money in very well diversified accounts and was heavily invested into whole market tracking ETF’s, well diversified high yield dividend stocks and a small portion was devoted to individual companies I believed in. I had watched the news and thought that these Redditors were just a bunch of dumb kids revolting to piss off the general public. A bunch of kids investing their money into something they didn’t know. They wiped out a hedge fund which consequently brought down some of the funds I was invested into slightly. They had caused a kid to commit suicide. Or so I thought? I even went as far as to address the problem with investing in meme stocks on this very website. While what I said, was good caution, it was for the wrong reason. I did it in the intrest of myself and of the intrest of other heavy handed firms. Some of the things that came to light in the weeks after that made me very upset and dismantled. I felt as if the fabrics of what I knew were being torn apart. My financial information and approach was sound but it wasn’t moral. It was not purposely immoral it was just misleading in a direction unbeknownst to me.
The Hearing and Powell
The hearing between Citadel’s, Robinhood’s, Marvin’s and Reddit’s CEO’s along with the Redditor who led the Gamestop revolt and multiple members of congress happened last week and it was chilling. Not in a good way.
Robinhoods very own Vladmir Tenov did very little in the way of making me feel warm and fuzzy inside. I haven’t been investing with Robinhood for 2 years now and for good reason. The company offers very little in the way of research and tools and limits you in the worst ways. Vladmir was grilled and his responses were absolutely terrible. Not only did he constantly try to divert and dodge questions but he consistently made attempts to denounce that anything crooked had occured. It seemed crooked to me looking on from the outside. It successfully led a young man to suicide and robbed thousands without giving them a chance to retain their own earnings. Vlad had no remorse for this throughout the hearing and gave blanketed statements throughout.
Citadel’s CEO was just as bad. He dodged and diverted simple questions the entire session and acted as if nothing was being corruptly adjusted to fit the big cats schedule. This was worrisome because congress willingly bought into these trash statements. Although some resistance was given, it was rather pathetic attempts to chase the answer besides a select few questioners. Speaking of that situation…
The possibly worst thing that happened was with congress. Yeah, that may sound suprising but none of them came prepared with research/documental evidence or asked any justifiable questions. They didn’t bring or use a financial expert to gather evidence, they didn’t even ask any relevant questions for most of the hearing. Instead they pandered things that 12 year olds would ask. I mean even Rick from Pawn stars would bring in experts for their advice and these clowns really asked how you can borrow margin, what is a short position and other obvious questions. If they didn’t feel comfortable asking they should’ve stepped aside and let someone else ask. Which brings me to another crucial point.
Why did they allocate 12 minutes to each congress member instead of allocating 1 hour to someone that has the right questions. Some of the speakers even went out of their way to talk about personal things among the people on trial. How does that help understand the investigation into the situation? That was the most unprofessional thing I have ever seen for someone we pay way too much money to do a job that anyone in the country can fill. They flat out did a terrible job of presenting questions and, not to start a conspiracy theory, but made the situation seem a lot less of a coincidence.
Fast forward to Jerome Powell’s speech. I don’t understand what this man isn’t allowed to comment on but I believe that the congress members questioning him did an okay job. However, just as last time, there was a lot of complementing and when a question became ambiguous they just dropped it and said, “oh ok”. We have no room in this country for people to do a half hearted job on a seat for Congress.The market dipped a total of 5%+ due to treasury bond yield rates and the expectations of Powell that week. While I agree that it is unavoidable to raise rates, I think there needs to be serious questions for the people to understand more in depth of what is happening at that level.
Later in the speech, it was brought up that the people of the U.S. were astonished that big banks were able to give out raises, bonuses and dividends to its wealthy investors when the company itself was beingbailed out (flashback to 2008). To that, Mr. Powell gave a pleasing but rather neutral answer. There shouldn’t be a neutral answer for that. This country is held on the backs of working Americans not the corporate hot shots. Do not allow the companies to give out dividends, do not allow them to pay high level CEO’s and chairman huge bonuses and raises. If you are bailed out, you should be doing everything you can to make debt thinner and operating expense as minimal as possible. Its like asking your mom for 100$ because you lost your job and then buying your friends lunch while your children are starving. It is wrong. Stop that act. I could go on but everything else covered would be very similiar. Politicians not addressing scandals or sketchy loopholes.
I created this website to help people find money in side gigs, weird niches, fun easy money and investing whether its passive or active. Since I’ve started trading 3-4 years ago, I’ve come to learn about a lot of common market influences but until recently I didn’t think of the implications of these things. Its public knowledge that 80% of the market is based on algos. Its no secret that you can short or buy shares. You can buy puts or calls options. You can trade commodities, OTC pink sheet stocks, Forex, crypto or anything your heart desires but who influences that? Hedge funds, writers, social media moguls and large corporations have the ability to influence stocks by timing news, bad report writing(whether true or not), shorting(with large assets), ladder attacks and other advantages that are given with information that is available only to larger entities or entities with higher positions. Until recently it was just regarded that these guys get the advantage. Reddit changed that.
Retail investors, like me and you, were always given the short end of the stick. If you were a swing trader there was no way of knowing anything was going astray until the report came out at 8:00am EST that the company missed expectations. Conveniently the stock was already down 10%. Suspicious to say the least. Then one day a group of Redditors got together to fight this. Behind the tall grass everyday people, like me and you, devised a plan to save a stock that was being run into the ground by hedge funds. They did this unethically by shorting it so badly that the stock would continue to push downward regardless of sentiment or actual retail traders sentiment at least . Gamestop (ticker symbol GME) rose from about $20 all the way to highs of $485 per share. They made main stream news, made hedge funds quiver in their boots and made the markets change gears. This was something monumental that changed retail investing. Then all of a sudden brokerages stopped the buying of GME. This action not only hurt retail investors, scared the market and put into question the ethics of hedge fund managers, brokerages and order filling companies but it seemed corrupt to the general public.
About a month after all that the dust had settled, the previously mentioned retail traders seemed to be beaten down. A life was lost, accounts were pretty much destroyed and a few made it out alive. Retail traders were done with the meme stocks permanently.
Just kidding, $AMC spikes Feburary 23, 24 and 25 to a high of $11. $GME spikes on Feurary 24, 25 to a high of $142.9.
AMC Fights Back
AMC monday morning was up 10%+ while the market was deep red and the rally began. WSB cordinated an attack over the weekend with GME and AMC titled: Round 2. The push for AMC was on. A lot of chatter was spoken wednesday about ending over 11 and a gamma squeeze. However, come Thursday the price dipped below $8 and the confidence was moderate. The story was now set for an epic finish. If they can finish above $8 Friday the gamma squeeze would still be on of they could succeed.
Friday it seemed AMC was mixed dipping right below and above all day until the last couple minutes. It seems that Reddit or investors had a card up their sleeves for the last hour and the last minute. 1 hour before close the stock pushed north of $8.40 and then dipped back to $8.10 for most of the hour. This was the firework show we waited for and the battle we knew was gonna happen.
Hedge funds vs retail investors. David vs Goliath. The miracle on ice of US vs USSR in the 1980’s olympics. The odds were stacked. Everyone said, it wasn’t possible to beat the hedge funds twice. That the suits wouldn’t make the same mistake twice, but they did. The stock ticked closer to the bell 7.74, 7.89, 7.94, 7.99, 8.01!!! 8 point 0 freaking 1. If this is followed by a big squeeze in the following weeks then this will in fact be a historical moment in history. Which brings me to my next point.
This is not the end but the beginning of the fight against these crooks and the uphill battle for a squeeze. Every single investor needs to either hold their positions or buy more. This will be something you never forget if everyone holds their postions. The pressure will only increase in the following weeks. What is the prediction for PT? realistically? It is whatever the market is willing to dish out. This is a rather risky investment, if we can call it that, but the payoff is immense. This is possibly the biggest test of psychology in the market today. Can the masses hold to outlast the majority? My opinion? Yes. If we could beat them Friday we can beat them now but we must be patient. Happy Sunday or Monday, wherever you are and lets look forward to the next week