6 ms·

A meme floating around wsb is that the 1k handout is driving this behaviour, and at first I thought that was kind of ridiculous but actually, it makes some sens

by yomly 6y ago

A meme floating around wsb is that the 1k handout is driving this behaviour, and at first I thought that was kind of ridiculous but actually, it makes some sense: On one side you have people who are bored and have nothing to lose, the handout was free money, nothing to spend the money on and no entertainment. On the other side you have people who are desperate for a ticket out of their current situation. Catalysing this is the low barrier of activation provided by Robinhood and the likes...

ClumsyPilot 6y ago
It would take a lot more than some redditors with 1k each to move thwbmarket like this
- hijinks 6y ago
  not saying you are 100% wrong but there was a MASSIVE influx of robinhood buyers into Hertz as the stock crashed https://robintrack.net/symbol/HTZ?symbol=HTZ https://robintrack.net/symbol/HTZ?symbol=HTZ
  - jiofih 6y ago
    160k new stockholders is still a drop in the bucket. The daily average for HTZ is 60M stocks traded. The real action happened on the days leading to that June 6 peak, when it hit $5, and it has already retreated. This is a straight pump-n-dump operation and I’m surprised there has been no crackdown on these in reddit...
    - hijinks 6y ago
      a good friend of mine was a trader for Goldman. He is almost 100% positive the funds and larger firms are pumping this market to get newer retail investors to buy in and right now we are at the top or close to the top of one of the largest bear markets we have seen in a long time. He expects maybe 2-3 weeks of small but choppy rise in the market to hit around Feb highs. Then you will see big time collapse that will make what we saw in Feb seem tiny. Then we will enter a bear market for a good 12-16 months.
      - unreal37 6y ago
        I see a lot of traders blaming the "retail investor" for the general rise in stock prices, but retail investors are not even 3% of the market. The HFT and over-leveraged hedge funds are doing something for sure. And they'll blame Robinhood.
        ClumsyPilot 6y ago
        So basically we have the equivalent of "millenials have ruined the housing market" in terns of reporting quality here. Find something negative that happened, and blame it on a weired group of people without checking if the theory is even plausible. Right up there with "4chan elected trump" and "immigrants have ruined the economy"
    - gip 6y ago
      The stock market is the rule of the minority who is looking (sending trade orders for a specific stock, driving price up or down). And for Hertz, the pros may be looking the other way these days because that serves their purpose, letting retail investors drive the price.
- yomly 6y ago
  Wsb is one community that is a useful heartbeat for overall sentiment but it wouldn't be the first time retail punters wanted to get in on "free money"... like bitcoin
jddj 6y ago
Agreed that it's been a number of factors coinciding. (Granting the usual caveat that a lot of the content there is satire...), there sure are a lot of posts there also making reference to dreading offices opening back up, because they won't be able to be at home playing the markets with a beer in hand. While I think people are putting in significantly more than just their trump money, I have to think that giving paid workers the direction to "stay at home, don't do anything, PS. No sports" could have a significant effect on the price of these meme stocks when applied across most of a nation the size of the US. It smacks of the altcoin hype, where momentum was the only indicator.

by yomly 6y ago

ClumsyPilot 6y ago

It would take a lot more than some redditors with 1k each to move thwbmarket like this

hijinks 6y ago
not saying you are 100% wrong but there was a MASSIVE influx of robinhood buyers into Hertz as the stock crashed https://robintrack.net/symbol/HTZ?symbol=HTZ https://robintrack.net/symbol/HTZ?symbol=HTZ
- jiofih 6y ago
  160k new stockholders is still a drop in the bucket. The daily average for HTZ is 60M stocks traded. The real action happened on the days leading to that June 6 peak, when it hit $5, and it has already retreated. This is a straight pump-n-dump operation and I’m surprised there has been no crackdown on these in reddit...
  - hijinks 6y ago
    a good friend of mine was a trader for Goldman. He is almost 100% positive the funds and larger firms are pumping this market to get newer retail investors to buy in and right now we are at the top or close to the top of one of the largest bear markets we have seen in a long time. He expects maybe 2-3 weeks of small but choppy rise in the market to hit around Feb highs. Then you will see big time collapse that will make what we saw in Feb seem tiny. Then we will enter a bear market for a good 12-16 months.
    - unreal37 6y ago
      I see a lot of traders blaming the "retail investor" for the general rise in stock prices, but retail investors are not even 3% of the market. The HFT and over-leveraged hedge funds are doing something for sure. And they'll blame Robinhood.
      - ClumsyPilot 6y ago
        So basically we have the equivalent of "millenials have ruined the housing market" in terns of reporting quality here. Find something negative that happened, and blame it on a weired group of people without checking if the theory is even plausible. Right up there with "4chan elected trump" and "immigrants have ruined the economy"
  - gip 6y ago
    The stock market is the rule of the minority who is looking (sending trade orders for a specific stock, driving price up or down). And for Hertz, the pros may be looking the other way these days because that serves their purpose, letting retail investors drive the price.
yomly 6y ago
Wsb is one community that is a useful heartbeat for overall sentiment but it wouldn't be the first time retail punters wanted to get in on "free money"... like bitcoin

jddj 6y ago

Agreed that it's been a number of factors coinciding. (Granting the usual caveat that a lot of the content there is satire...), there sure are a lot of posts there also making reference to dreading offices opening back up, because they won't be able to be at home playing the markets with a beer in hand. While I think people are putting in significantly more than just their trump money, I have to think that giving paid workers the direction to "stay at home, don't do anything, PS. No sports" could have a significant effect on the price of these meme stocks when applied across most of a nation the size of the US. It smacks of the altcoin hype, where momentum was the only indicator.