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Stonk thread: we are so back! (3 Viewers)

Will the Fed meeting have any effect on stonks?

The MOASS that was expected from AMC this week doesn't appear to be happening, and many people are getting impatient.  A slow bleed downwards with sharp declines and spikes seems likely.  I just hope this doesn't give more people confidence to go short.  A rising short percentage would only add fuel to the hodlers fire.

 
Caveman33 said:
Will the Fed meeting have any effect on stonks?

The MOASS that was expected from AMC this week doesn't appear to be happening, and many people are getting impatient.  A slow bleed downwards with sharp declines and spikes seems likely.  I just hope this doesn't give more people confidence to go short.  A rising short percentage would only add fuel to the hodlers fire.
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If the reserve causes a pullback, I assume shorts try to use it to fuel more of a sell off. 

 
Most of my attention goes to GME, which usually doesn't flow with the broader market. So, no, I don't think the apes listen to the Fed's and there will be little effect from whatever discussion they have today. 

GME has seen a floor of $210 for the past four days. Whatever powers that be seem to be keeping it above that and below Friday's max pain of $220. Wouldn't be surprised if this continues to trade sideways for the remainder of this week.

 
McBokonon said:
I did just buy some July $10 $WISH calls in my gambling account because my normal positions are pretty much stable and I like to gamble, too.
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Almost 2 million premarket shares traded. Let’s get this money and celebrate with cheap knockoff goods that will probably give us lead poisoning!

 
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Lately I've noticed how the amount of cash my broker holds in the margin account fluctuates on a daily basis and it seems like an advance indicator of what to expect from AMC.  Tuesday's margin was high and the stock went up but I can't remember what pre-market was like.  Wednesday's margin was a lot less and the stock was down pre-market and dropped.  Today's margin went back up to the same level as Tuesday even though it was down during pre-market.  Hmm, they have more inside information to inform the margin holding decision.

 
I won't be able to lose my whole account on AMC as I intended.  The broker's margin requirements are too tight.  They will liquidate me by $100-120 and I will have to accept a huge loss.  It is certainly a possibility.  But I don't see any way for the hodlers to win in the long run.  They can prop up the price and wipe some shorts out but there is no way for the majority to actually turn their shares into dollars without cratering the price.  Even hodling for the long run probably won't be successful as AMC will likely need to dilute to survive.  And if the hodlers refuse to allow that then AMC would be forced to enter bankruptcy. Could that create a comical scenario where a bankrupt company has a huge market cap? Most of the debt is long term so this would take years to play out.  I'm still banking on some investors getting impatient after the MOASS doesn't happen this week and starting an exodus.

 
Before all WSB stocks were called MEMEs, there were ya know.  Stocks that people would bet a ton of money on.

PRPL was one of them, and the guy who was the PRPL pioneer last time is now buying again,

PRPL $25.60 for me.

 
The margin holding requirement eased up on AMC today so let's see if that accurately predicts a drop in share price.

 
JB Breakfast Club said:
Ortex has shares on loan utilization at 95%, so I assume the loan interest rate has increased. Does that play into this at all?
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The margin holding may mean nothing. I only started paying attention to it recently and it seems to be fluctuating by a consistent 25K.  Yesterday I only had 9K available to withdraw in cash because they were holding so much in my margin account.  Today I can withdraw 34K because they are holding a lot less.  I was theorizing that they may base this on the buy/sell orders that they see internally on AMC.  But I think they used the exact same margin holding amounts on Tuesday and Wednesday though so it may not predict anything.

The borrow rate was only 1.7% yesterday which is down from a high of 7.2% over the weekend of June 4th.

 
Should be a week for GME; new CEO starts today and was already appointed to the Board of Directors this morning. I think there might another FTD cycle rolling around soon and something about a rebalancing of Russell's bananas.

I'm not sure what to make of this shift from Russell 2000 to the 1000. I would expect more sales volume from the 2000 ETFs than the 1000 ETF will be purchasing, but no idea what happens with all of the ####ery that has been going on behind the scenes.

 
Margin holding is loose on AMC again.  It is just fluctuating between loose and tight but the two tight days, Tues and Thurs, were when the stock went up. 

 
KGB said:
Before all WSB stocks were called MEMEs, there were ya know.  Stocks that people would bet a ton of money on.

PRPL was one of them, and the guy who was the PRPL pioneer last time is now buying again,

PRPL $25.60 for me.
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Out PRPL about even

 
$WISH making a move today - my calls are up almost 32% on the day but of course they're swinging all over the place. Still lots of time on these (July 16th) but will take some profits if it goes completely crazy.

 
"SR-NSCC-2021-002, be, and hereby is, APPROVED on an accelerated basis."

The latest catalyst for stonks is in place. Apes gotta ride out today and assume massive shorting trying to shake our retail followed by mooning once margins are called. 

 
JB Breakfast Club said:
"SR-NSCC-2021-002, be, and hereby is, APPROVED on an accelerated basis."

The latest catalyst for stonks is in place. Apes gotta ride out today and assume massive shorting trying to shake our retail followed by mooning once margins are called. 
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Wanna translate this to English?

 
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McBokonon said:
Wanna translate this to English?
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Liquidity was checked about every 30 days. New rule makes it daily. Additional liquidity reviews should mean more margin calls, which means stonk shorters need to pony up more collateral or cover their position. 

It's good for the market in general to have better oversight and shorter transactions (hopefully T+0 is on the horizon), and the most immediate impact should be on these highly shorted/naked stonk positions, in concept. Now we watch it play out. 

Change approved today and goes into effect Wednesday. 

 
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JB Breakfast Club said:
Liquidity was checked about every 30 days. New rule makes it daily. Additional liquidity reviews should mean more margin calls, which means stonk shorters need to pony up more collateral or cover their position. 

It's good for the market in general to have better oversight and shorter transactions (hopefully T+0 is on the horizon), and the most immediate impact should be on these highly shorted/naked stonk positions, in concept. Now we watch it play out. 

Change approved today and goes into effect Wednesday. 
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I agree that there should be more oversight and transparency.  When you say T+0 is on the horizon, would that mean that our trades will have to settle that same day within our brokerage account? That would be great.  If the stonks are bringing about these changes then I'll raise my mug to you mad men (and women).  I still don't think it will cause AMC or GME to moon (maybe a small spike generated by spreading this idea).  Retail seems to be tapped out on AMC and GME when they're at 30B market cap.  You need more big money (or HFs) to get on the long side, which is possible and even if it's a temporary move it could easily wipe me out of my position. 

I have also been losing money in a similarly sized short position on BLNK.  One of the most heavily shorted stocks and only a 1.6 B market cap.  Low volume, so a very good target for a short squeeze.  I have been paying 20-30% borrowing interest.  No idea why the broker is only charging 1-3% interest on AMC if they don't even have the appropriate shares to cover my naked position...Oh wait, no, I figured it out.  They are charging low borrowing interest on AMC in order to lure rubes like myself into shorting and thereby helping them artificially suppress the true share price of $500,000

 
JB, an important change that should come about through stonks is that shareholders need more control over the borrowing of their shares.  Very few brokers share the interest that they earn.  Whoever holds the BLNK shares that I borrowed deserves most if not all of the ~$600 I paid in interest.  Or their election to not have their shares borrowed should be honored. I don't buy the theory that more shares of AMC are short than reported.

 
Caveman33 said:
JB, an important change that should come about through stonks is that shareholders need more control over the borrowing of their shares.  Very few brokers share the interest that they earn.  Whoever holds the BLNK shares that I borrowed deserves most if not all of the ~$600 I paid in interest.  Or their election to not have their shares borrowed should be honored. I don't buy the theory that more shares of AMC are short than reported.
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Fidelity sent me some info on this same thing where I could earn interest by sharing my shares but only one stock I owned at the time was of interest and I already had sold it (was a good call to sell). It was interesting until I realized it wouldn’t cover any of my stocks. 

 
Held through another rough day. GME has to be close to done with their offering, right? Right? 

Counting on pumpers to get word out about new rules to rile up some support. Could really use a positive day to keep eyes on the stonks. 

 
McBokonon said:
$WISH making a move today - my calls are up almost 32% on the day but of course they're swinging all over the place. Still lots of time on these (July 16th) but will take some profits if it goes completely crazy.
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Closed these before the close for about an 84% gain. I’m sure I’m leaving some on the table but I might still play in this name a few more times.

 
Is the meme stonk party over?

.... or is this the calm before the storm?

I know some of you were saying there were key dates for max pain and such.

Have those come and gone?

 
Bossman said:
Is the meme stonk party over?

.... or is this the calm before the storm?

I know some of you were saying there were key dates for max pain and such.

Have those come and gone?
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I don’t think the party is over, because the shorts haven’t covered. As for dates, we will have to see if all of the new rules going into effect will stop that can kicking that has been going on. As previously mentioned, the latest rule, 002 which had been delayed for months was approved yesterday and goes into effect tomorrow.

 
Charlie Harper said:
5 million shares sale complete.

1.6b in reserves.

New trading rules in play.

Let's see.....
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Thought this article was interesting as it directly mentions the cash raised and how it's important to investors:

https://finance.yahoo.com/news/game-stop-gives-investors-16-billion-reasons-to-care-about-the-meme-trade-morning-brief-091020855.html

But, it seems to ignore one big thing, that meme investors are retail investors. I can't recall if it was AMC or GME where I read recently that retail owned 74% of the company. Those 5 million shares were direct to market so retail investors are the ones buying these additional shares at potentially the highest prices. It also continues to invalidate the gamma squeeze talk as there again are way more shares to make it way easier to cover and harder to keep diamond hands % holdings high.

I just think it's funny that all this started because of evil hedge funds and it's now become retail investors paying ATH stock prices to basically enrich the same rich executives. Look at AMC's CEO. He got a fat bonus last year in their worst year ever received double the compensation in 2020 than he did in 2019. No wonder he's throwing out free popcorn. Retail investors let him avoid bankruptcy (for now) and keep increasing his comp package by paying more per share than any other AMC investors in the cash raises.

I really can't wait for the movie/documentaries on meme stocks in a few years. It's going to be really interesting when all the numbers are crunched and some of the hidden entities are exposed, such as the "good" hedge funds/billionaires that somehow got richer.

 
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