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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: bull_dozer who wrote (167597)	1/26/2021 9:10:01 PM
From: TobagoJack	Read Replies (1) \| Respond to of 217773

Re <<going vertical soon>> ... they certainly make it easy :0) At some juncture add more puts, even as they get cheaper all the time, all the way to zero. Meantime love the enthusiasm ... valuation very reasonable relative to TSLA as TSLA has to actually work to support a valuation whereas GME is sort of like bitcoin, formerly know as bitgold, that which has value due to social networking, akin to Facebook BTC can go to 500K GME can go to 500 finance.yahoo.com

To: bull_dozer who wrote (167597)	1/26/2021 10:43:05 PM
From: TobagoJack	Respond to of 217773

knee-capping might happen as the professionals feel the squeezing love they do not desire and yelp to the minders ... ... and yet no one think it odd that 100+ % of the free float are borrowed and shorted ... something about level playing field finance.yahoo.com U.S. state regulator says GameStop trading could be 'systemically wrong': Barron's Wed, January 27, 2021, 11:03 AM The GameStop store sign is seen at its shop in Westminster(Reuters) - Top securities regulator in Massachusetts thinks trading in GameStop Corp stock, which skyrocketed for a fourth straight day, suggests there is something "systemically wrong" with the options trading surrounding the stock, Barron's reported bit.ly on Tuesday. The video game retailer's after-hours surge added to a 93% jump during Tuesday's trading session, with the company's stock propelled by traders on Wallstreetbets, many of them buying volatile call options. "This is certainly on my radar," William Galvin, secretary of the Commonwealth of Massachusetts, told the magazine. "I'm concerned because it suggests that there is something systemically wrong with the options trading on this stock." GameStop and the office of the securities regulator in Massachusetts did not immediately respond to Reuters' request for comment outside business hours. The stock surged 50% in extended trade after Musk tweeted "Gamestonk!!", along with a link to Reddit's Wallstreetbets stock trading discussion group. "Stonks" is a tongue-in-cheek term for stocks widely used on social media. GameStop has surged more than seven-fold to $147.98 from $19 since Jan. 12, spurring concerns over bubbles in stocks that hedge funds and other speculative players bet will fall in value. (Reporting by Radhika Anilkumar in Bengaluru; Editing by Arun Koyyur)

To: bull_dozer who wrote (167597)

1/26/2021 11:11:58 PM

From: TobagoJack

Respond to of 217773

Re <<vertical>> ...

or vertical the other direction, and is why the officialdom are getting concerned about the sore loser squealing of the professionals caught on wrong knee cap

maybe gold and bitgold shall get hit as well

would be typical of deleverage

yellen and powell best talk and be ready to step in, ready or not

we are at a delicate moment, in between here and there, and so neither there nor here

shall keep accumulate puts for sound sleeping

bloomberg.com

Short-Squeezed Hedge Funds Are Now Getting Hit on Their Bullish Bets Too
Lu Wang
27 January 2021, 06:14 GMT+8
With a full-blown retail raid targeting their short books, many of the stocks hedge funds are bullish on are suddenly in trouble, too. That has prompted the industry to cut their risk appetite at the fastest pace in more than a year.

Square Inc., Roku Inc. and Peloton Interactive Inc., among the industry’s favorite stocks, each tumbled at least 3% Tuesday while GameStop Corp. continued to lead a rally among companies with the highest short interest. Shares of the video game retailer spiked more than 65% in late trading after Elon Musk tweeted about it.

The Goldman Sachs Hedge Industry VIP ETF (ticker GVIP), tracking hedge funds’ most popular stocks, fell for a fourth straight day, the longest stretch since October. That coincided with a 15% rally in a basket of the most-hated shares over the stretch.

In a market where bearish wagers are backfiring like never before, one way to mitigate career risk might be to sell stocks that had previously been working -- even if that means parting with some beloved companies.

“The recent squeeze in heavily shorted stocks has been nothing short of extraordinary,” said Jonathan Krinsky, chief market technician at Bay Crest Partners. “If shorts cause too much pain, there is usually some repercussion on the other side as longs have to be sold to offset losses.”

Hedge funds are suffering as retail traders whipped up in chat rooms charge into heavily shorted names, fueling squeezes in stocks from Bed Bath & Beyond Inc. to AMC Entertainment Holdings Inc. Fund managers have been busy paring bearish bets, with hedge fund clients tracked by Goldman Sachs carrying out short covering at an almost unprecedented pace during the past two weeks.

Read more

Short Sellers Crushed Like Never Before as Retail Army Charges

Before a Penny Stock Skyrocketed 451%, Trader-Chat Forums Lit Up

But the long sides of their books are starting to feel the pinch too. On Monday morning, when stocks with the highest short interest soared as much as 11%, the GVIP fund tumbled almost 2%.

Such a squeeze not only hurts performance for hedge funds, it increases the potential size of a measure known as daily value at risk, both of which would prompt money managers to cut back risk, according to Kevin Muir of the MacroTourist blog.

Indeed, gross leverage, or a gauge of hedge fund risk appetite that takes into account long and short positions, on Monday experienced the largest active reduction since August 2019, data from Goldman Sachs show.

“The real question is whether this selling starts a negative feedback loop,” Muir wrote Monday. “Even though it might seem like the stock market bulls should be cheering the squeezes, their success might end up being the trigger that brings about the general stock market correction many have been waiting for.”

— With assistance by Melissa Karsh

(Updates with data on hedge funds cutting risk starting in first paragraph.)

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