4 ms·

I mean do people really believe Robinhood traders are moving billions of dollars of stock a day? Most admit that they aren’t selling and buying at higher and hi

by dkrich 6y ago

I mean do people really believe Robinhood traders are moving billions of dollars of stock a day? Most admit that they aren’t selling and buying at higher and higher levels. That translates to very little cash to buy more. There is absolutely no way that these moves can be attributed to retail traders or short squeezes. The narrative that these are retailers causing every significant move higher and with every move the shorts are losing more and more is actually causing this bubble.

kenneth 6y ago
Let's say the average bet is 1-5k into this the average Robinhood user invests around 5k), it only takes 200k-1M buying in to move $1B into the stock. When you start with a $200M market cap on a heavily shorted stock, you easily end up where we are today
- dkrich 6y ago
  And doing it every day? Even now that the stock is $350 a share? If they are able to do that I have to question the “little guy” tag.
- BoorishBears 6y ago
  Average bet being 1-5k feels optimistic by an order of magnitude... The entire account value of normal RH users in the range of 1-5k Most people just joining don't have 1k to just throw at a lottery ticket, and remember that until today RH allowed fractional shares of GME - But you know, that's not even it... The other day GME did 20 Billion in volume in a single trading day. More than the S&P 500. I don't understand how people think retail can account for that.
rory 6y ago
Matt Levine's email today estimates retail investors to be about 30% of total volume (with actual data from Citadel), but retail was net selling on Tuesday, Wednesday, and Thursday. So theoretically retail is enough to move the price if they were truly united, but that isn't actually the case. It's just not sexy to say "I bought in for a couple days and am taking my gains" in a public forum.

4 ms·

I mean do people really believe Robinhood traders are moving billions of dollars of stock a day? Most admit that they aren’t selling and buying at higher and hi

by dkrich 6y ago

kenneth 6y ago
Let's say the average bet is 1-5k into this the average Robinhood user invests around 5k), it only takes 200k-1M buying in to move $1B into the stock. When you start with a $200M market cap on a heavily shorted stock, you easily end up where we are today
- dkrich 6y ago
  And doing it every day? Even now that the stock is $350 a share? If they are able to do that I have to question the “little guy” tag.
- BoorishBears 6y ago
  Average bet being 1-5k feels optimistic by an order of magnitude... The entire account value of normal RH users in the range of 1-5k Most people just joining don't have 1k to just throw at a lottery ticket, and remember that until today RH allowed fractional shares of GME - But you know, that's not even it... The other day GME did 20 Billion in volume in a single trading day. More than the S&P 500. I don't understand how people think retail can account for that.
rory 6y ago
Matt Levine's email today estimates retail investors to be about 30% of total volume (with actual data from Citadel), but retail was net selling on Tuesday, Wednesday, and Thursday. So theoretically retail is enough to move the price if they were truly united, but that isn't actually the case. It's just not sexy to say "I bought in for a couple days and am taking my gains" in a public forum.