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Robinhood is now allowing 100 share purchases. GME continues to suck air. And last weeks trading reports showed retail investors were net sellers of GME after

Robinhood is now allowing 100 share purchases. GME continues to suck air. And last weeks trading reports showed retail investors were net sellers of GME after Monday.

libertine 6y ago
>Robinhood is now allowing 100 share purchases. GME continues to suck air. This doesn't take from the fact that Robinhood restrictions had a major impact, which is what I said. I never said this stock would be indefinitely high, or that it would go to the moon, or anything like that. The wave would crash eventually after the hype was over. Still, Robinhood restrictions removed a massive amount of demand from the market, and that has consequences - namely on stock price, momentum of the market, hype, everything. The market went sideways when Elon Musk smoked a joint on a popular podcast, so how come the most popular app for retail investors imposing demand restrictions, to buy a stock bound to a popular movement, wouldn't have any impact on it? >And last weeks trading reports showed retail investors were net sellers of GME after Monday. Like I said, the supply with restricted demand drove prices down - people were selling, and after restrictions they could only sell. Some were planned, some were panic, some were automatic.
- valuearb 6y ago
  They were net sellers on Tuesday and Wednesday, before the restrictions. While GME was vaulting to the moon.
  - libertine 6y ago
    I don't know what else to say to you mate. Supply < Demand - prices increases. Supply > Demand - price drops. There was always sellers in the market, the supply wasn't 0. It doesn't matter who was selling: institutions, hedge funds, or retail. The point is that demand was larger then supply until restrictions were set.
    - valuearb 6y ago
      So by your math the price declined on Tuesday and Wednesday because this is driven by retail investors and they were net sellers? Or maybe, just maybe, the purchases market makers required to cover those massive call option bets got released when options expired?
- dr-detroit 6y ago
  the government doesn't give a subsidy for smoking a joint that was so very out of character for Musk
- Rapzid 6y ago
  Maybe it did, but Robinhood and other brokers reactions were predictable enough to be factored into the risk posed by the volatility of the stock. Knowledge is the real power; something that was in severe short supply in simple narratives WSB was throwing up all over the internet to get late buyers in the game.
  - libertine 6y ago
    > Robinhood and other brokers reactions were predictable enough to be factored into the risk posed by the volatility of the stock. You're saying the reactions were predictable after brokers took measures and justified their actions. The reality is that no one, not even Robinhood predicted the volume of transactions and the capital requirements for it.
    - Rapzid 6y ago
      Of that specific stock a year ago? No. But there are regulations and circuit breakers in place for extreme volatility already so situation like what happened are known possibilities. Robinhood can pause transactions anytime they need to in order to raise more capital or otherwise meet their deposit requirements. The stock exchanges can completely pause all trading to let things cool off if they deem it necessary. The dominant narratives coming out of WSB over the past couple weeks were narrow-picture, simple minded takes on a complex system(and conspiracy theories) rooted in ignorance. Anyone preaching a more nuanced view and displaying actual knowledge of how the market functioned, at a technical level, were painting a much different picture. I feel like the universe prob did a bunch of would-be investors a favor when those brokers had to temporarily pause buys on GME. Given how high the stock was and GME is down 80% today off the 5 day peek. I understand those who were super keen on taking a bunch of other peoples money in exchange for a worthless stock may feel differently. To each their own I suppose.
      - libertine 6y ago
        I'm talking about the past week events of a specific group of stocks, and that they were unpredictable for everyone. It was unpredictable for WSB, for Robinhood and other brokers that paused transactions, for hedge funds, for the media, for everyone. Robinhood didn't know they would need to round up 2 billion + 3 billion USD, which according to the CEO he was notified of that capital requirement at a 3AM call (could be bullshit, but it was what he said). If Robinhood predicted any of this, they would have raised that cash sooner and save themselves a PR nightmare. You're the one that seems to not give the due credit to the whole thing - not credit in a moral/ethical sense, but in the achievement of an unpredictable set of escalating events. To be clear, I didn't participate in any of these, neither I think the decision of anyone that joined it for the "lulz" is a smart decision. But still, I need to acknowledge all the chain of events was impressive. The end isn't impressive, everyone knew how this was going to end.

Robinhood is now allowing 100 share purchases. GME continues to suck air. And last weeks trading reports showed retail investors were net sellers of GME after Monday.

libertine 6y ago

>Robinhood is now allowing 100 share purchases. GME continues to suck air. This doesn't take from the fact that Robinhood restrictions had a major impact, which is what I said. I never said this stock would be indefinitely high, or that it would go to the moon, or anything like that. The wave would crash eventually after the hype was over. Still, Robinhood restrictions removed a massive amount of demand from the market, and that has consequences - namely on stock price, momentum of the market, hype, everything. The market went sideways when Elon Musk smoked a joint on a popular podcast, so how come the most popular app for retail investors imposing demand restrictions, to buy a stock bound to a popular movement, wouldn't have any impact on it? >And last weeks trading reports showed retail investors were net sellers of GME after Monday. Like I said, the supply with restricted demand drove prices down - people were selling, and after restrictions they could only sell. Some were planned, some were panic, some were automatic.

valuearb 6y ago
They were net sellers on Tuesday and Wednesday, before the restrictions. While GME was vaulting to the moon.
- libertine 6y ago
  I don't know what else to say to you mate. Supply < Demand - prices increases. Supply > Demand - price drops. There was always sellers in the market, the supply wasn't 0. It doesn't matter who was selling: institutions, hedge funds, or retail. The point is that demand was larger then supply until restrictions were set.
  - valuearb 6y ago
    So by your math the price declined on Tuesday and Wednesday because this is driven by retail investors and they were net sellers? Or maybe, just maybe, the purchases market makers required to cover those massive call option bets got released when options expired?
dr-detroit 6y ago
the government doesn't give a subsidy for smoking a joint that was so very out of character for Musk
Rapzid 6y ago
Maybe it did, but Robinhood and other brokers reactions were predictable enough to be factored into the risk posed by the volatility of the stock. Knowledge is the real power; something that was in severe short supply in simple narratives WSB was throwing up all over the internet to get late buyers in the game.
- libertine 6y ago
  > Robinhood and other brokers reactions were predictable enough to be factored into the risk posed by the volatility of the stock. You're saying the reactions were predictable after brokers took measures and justified their actions. The reality is that no one, not even Robinhood predicted the volume of transactions and the capital requirements for it.
  - Rapzid 6y ago
    Of that specific stock a year ago? No. But there are regulations and circuit breakers in place for extreme volatility already so situation like what happened are known possibilities. Robinhood can pause transactions anytime they need to in order to raise more capital or otherwise meet their deposit requirements. The stock exchanges can completely pause all trading to let things cool off if they deem it necessary. The dominant narratives coming out of WSB over the past couple weeks were narrow-picture, simple minded takes on a complex system(and conspiracy theories) rooted in ignorance. Anyone preaching a more nuanced view and displaying actual knowledge of how the market functioned, at a technical level, were painting a much different picture. I feel like the universe prob did a bunch of would-be investors a favor when those brokers had to temporarily pause buys on GME. Given how high the stock was and GME is down 80% today off the 5 day peek. I understand those who were super keen on taking a bunch of other peoples money in exchange for a worthless stock may feel differently. To each their own I suppose.
    - libertine 6y ago
      I'm talking about the past week events of a specific group of stocks, and that they were unpredictable for everyone. It was unpredictable for WSB, for Robinhood and other brokers that paused transactions, for hedge funds, for the media, for everyone. Robinhood didn't know they would need to round up 2 billion + 3 billion USD, which according to the CEO he was notified of that capital requirement at a 3AM call (could be bullshit, but it was what he said). If Robinhood predicted any of this, they would have raised that cash sooner and save themselves a PR nightmare. You're the one that seems to not give the due credit to the whole thing - not credit in a moral/ethical sense, but in the achievement of an unpredictable set of escalating events. To be clear, I didn't participate in any of these, neither I think the decision of anyone that joined it for the "lulz" is a smart decision. But still, I need to acknowledge all the chain of events was impressive. The end isn't impressive, everyone knew how this was going to end.