The Stock Market Thread

Admittedly I've mostly been going off headlines and not done deep dive here but was the extent of the shorts not such that it truly was undervalued? And even if it's still a company without a great future there was room to move up? Sounded like that hedge fund just screwed up

 

Yeah there's a difference between what happened then and what's happened in the last couple of days though, not that you could really peg most of it on anyone.

 

you don't think Kramer owns any of the many stocks he talks about? come on. like he doesn't even have a 401k? like he doesn't own any stocks while doing stock stuff as a career?

 

shorting a stock doesnt' necessarily make it go down. they certainly screwed up by shorting enough that their hedge fund is in danger.

 

he has to disclose if he owns it. i haven't seen his show in a long time, but i think it said his foundation owns some of them. he probably has to put his own money in a blind trust to be managed by someone else. he also made millions in the 1990s and likely isn't goign to want to risk going to jail just to make more millions

 

how about publicly announcing that you shorted it, and recommending others do as well?

 

has to? who is checking?

 

only illegal if you are distributing false and misleading information.

 

cnbc. and all stock trades are tracked. he'd get found out pretty quickly and get arrested. i once got a call from the sec market watch division because i sold some calls hours before a stock went up. i told them if i knew it was going up i surely would't have sold the calls, but they still called me to ask about it.

 

I'm shorting this, and you should too. -- legal

This is over shorted, I'm buying it, and you should too. -illegal?

 

i think the stock is overpriced because of x, y, and z - legal
you and i and 1,000 people should buy this just so it goes up. - illegall

 

But it is demonstrated that they didn't buy it just so it goes up. They bought it because it was over shorted. Which is an x, y and z.

The outcome was that the price went up. But that's the outcome of a short, that the price goes down.

 

if the stock doesn't go up, being over shorted doesn't matter. they said "let's all get together and buy the stock so it goes up and creates a short squeeze." you are artificially creating demand for the stock. if they simply said "i'm buying it because if the stock goes up on it's own it will create a short squeeze" that's not illegal. the act of creating the artificial demand is what makes it illegal.

 

Why does that make the demand artificial? There was no lie. The goal of a long position IS to have the price go up.

Why is a group purchase artificial?

 

I feel like there is something else behind it. I don't see RobinHood et al and their 3 share trades bumping a stock from $15 to $350.

 

because you are manipulating the price of the stock.

 

Josh Heupel is our head coach or I'd say this this is the most absurd thing I've seen today. Alas.

 

you are right normally. but if you have tens of thousands of people doing it then it can have an effect. normally this type of thing is done on stocks that don't trade very much volume so that a 1,000 shares does makes a difference.

 

They've lost $2billion for every $12 it has gone up. $54 billion total.