First let me start by correcting something: people that commented on the squeeze are saying there are still 120% short interest. This is incorrect.
The number of loaned shares halved in the last 2 weeks. So I think it is safe to assume the bears closed their positions. But a lot still hold on.
We won't get the end of month report for another 10 days, so we'll have to wait to see exactly what the situation now is.
You could say Michael Burry started it all, or at least put things into motion. I do not know if he was alone or not.
Why didn't you hear about it? Michael Burry, a neurosurgeon, has been an outspoken "covid skeptic", so he had no place in the media.
But now he is saying the rally is insane and GME is going to crash, so the media is featuring him once again 😀
The liberal Washington Post has slammed buyers (imagine my surprise). They called short sellers & hedge funds "the good guys".
Conservative, alt-right, libertarian, or socialist, they're the enemy of all now. It's more than just the alt-right & radical left that want a revolution now.
For once all sides (except liberals) agree on something, the dogmatic bourgeois-liberals in power are alienating everyone here.
I would be more popular if I said "go get them, they'll all be squeezed and you'll all be millionaires", but I can say with certainty this will end badly.
First the hedge funds and their congress & media friends won't go down without a fight, and then even if the last bears get wiped out and the stock soars to $3000, which might paralyse the clearing houses and hence the market by the way, the exit door will be much much too small for the huge army of buyers.
WSB won a battle, but they should be careful not to get ahead of themselves and "overstay their welcome". Best to fall back and plan the next battle now.
Sources:
- For the number of shares short & loaned shares: www.ortex.com/stocks/26195/shorts (Exchange Reported SI and Freefloat On Loan)
- For the estimated % float and Float shares outstanding: www.tradingview.com/
- For the aggressive Q3 2019 buyback info: news.gamestop.com/ne...-results-and-updates
The number of loaned shares halved in the last 2 weeks. So I think it is safe to assume the bears closed their positions. But a lot still hold on.
We won't get the end of month report for another 10 days, so we'll have to wait to see exactly what the situation now is.
You could say Michael Burry started it all, or at least put things into motion. I do not know if he was alone or not.
Why didn't you hear about it? Michael Burry, a neurosurgeon, has been an outspoken "covid skeptic", so he had no place in the media.
But now he is saying the rally is insane and GME is going to crash, so the media is featuring him once again 😀
The liberal Washington Post has slammed buyers (imagine my surprise). They called short sellers & hedge funds "the good guys".
Conservative, alt-right, libertarian, or socialist, they're the enemy of all now. It's more than just the alt-right & radical left that want a revolution now.
For once all sides (except liberals) agree on something, the dogmatic bourgeois-liberals in power are alienating everyone here.
I would be more popular if I said "go get them, they'll all be squeezed and you'll all be millionaires", but I can say with certainty this will end badly.
First the hedge funds and their congress & media friends won't go down without a fight, and then even if the last bears get wiped out and the stock soars to $3000, which might paralyse the clearing houses and hence the market by the way, the exit door will be much much too small for the huge army of buyers.
WSB won a battle, but they should be careful not to get ahead of themselves and "overstay their welcome". Best to fall back and plan the next battle now.
Sources:
- For the number of shares short & loaned shares: www.ortex.com/stocks/26195/shorts (Exchange Reported SI and Freefloat On Loan)
- For the estimated % float and Float shares outstanding: www.tradingview.com/
- For the aggressive Q3 2019 buyback info: news.gamestop.com/ne...-results-and-updates
Comment:
I did a bit of research and I found some interesting things...
First the narrative is wrong (when is it ever not?).
I got some data from bloomberg, that got it from Citadel...
More than 50% of Robinhood trades go through Citadel, and they process "39% of all U.S.-listed retail volume"
www.citadelsecuritie...quities-and-options/
Now, this is what Citadel had:
The data is from:
assets.bwbx.io/image...R8AM1c/v0/800x-1.png
Which comes from this blomberg article (behind a paywall) that got it from Citadel:
www.bloomberg.com/op...th-sides-of-gamestop
This could include a lot of day gambling which cancels itself.
This is what I think happened:
First the narrative is wrong (when is it ever not?).
I got some data from bloomberg, that got it from Citadel...
More than 50% of Robinhood trades go through Citadel, and they process "39% of all U.S.-listed retail volume"
www.citadelsecuritie...quities-and-options/
Now, this is what Citadel had:
The data is from:
assets.bwbx.io/image...R8AM1c/v0/800x-1.png
Which comes from this blomberg article (behind a paywall) that got it from Citadel:
www.bloomberg.com/op...th-sides-of-gamestop
This could include a lot of day gambling which cancels itself.
This is what I think happened:
Free brokers are not surprising anyone. They ended the short squeeze.
The "free" brokers that not only halted trading but halted buying while allowing selling, and some (the ones I disliked the most before this already) have even BEEN SELLING their clients shares against their will!
The "free" brokers have literally caused their clients to lose money. Both the ones that got their shares force-sold, and those that bought mid squeeze just before buying was halted at what is now the top.
Vlad, fitting name, from Robinhood has been saying on tv he had no liquidity issues. And he also said he did not stop trading because the people he gets money from asked him to. Then why did he stop it? And why only on the buy side?
Vlaaaaaad? The clearing house asked to halt the trading? Then why did not-free brokers NOT halt it?
The end of an ERA.
Everyone is scared of populism so absolutely everyone is siding with the GME longs, a funny one in particular is Elon Musk, once again this guy is really taking big risks, doing the popular thing everyone agrees on.
Bears are going to be much more silent from now on. It is typical for the population to dislike short sellers, it has always been like this, and honestly people today are more ignorant and dumber so bears are at greater risk of real violence coming from crowds of people that don't understand markets or from politicians that want votes.
One intervention that made me laugh: Citron research known for releasing bearish research (translation: taking a short position then spreading FUD) announced they would not publish any short research anymore, and focus on longs only.
Final words.
Short estimates from ortex & S3 show that shorts dropped from 62m to 27m.
It is likely that GME drops back to 10 - 30 dollars, and the US congress has already planned to have hearings on the matter.
People that mocked me for criticizing free brokers have paid the price, and this zero commission thing is taking a hit, a lot of people with "big" accounts will move on (why, oh WHY do people with 100k+ accounts use crappy free trading PHONE APPS????).
A screenshot of the recent Natural Gas short squeeze (remember James Cordier from optionsellers dot com apology video?) as well as the famous Volkswägen one:
I also want to correct something. There is no naked short selling going on (at least not on a big scale). Any "pro" person with a suit acting all knowledgeable saying there is so, is a clown and a charlatan. You CAN NOT naked short sell a stock. It is illegal, even for market makers, in the US and the EU, since the 2008 crisis.