SEC needs to shut down WSB and indict the instigators

It always surprises me the number conspiracy theorists and anti hedge fund people posting here - not sure why, but you guys are supposed to be traders, right?

I watched as Tucker Carlson tried to get Charles Payne to explain this to the public last night. They missed the ball pretty badly, but managed to get in some "stick it to the man" stuff that I keep seeing parroted all over. But who is "the man" today? Is it the gov't or the hedge funds? It seems to change depending on what's happening.

Most of you guys know that thousands and thousands of reddit traders aren't going to blow through 40M shares of a stock trading at $350 in a day, much less the other names that are starting to tremor from short squeeze activity. There has been some media about a few of the players that are involved (Gabe at Melvin, Chanos & Ken Griffen to name a few) and throwing around billions trying to get on one side or another. Another article said BlackRock may have scored a few billion in the last week on GME. This may have started and may be getting egged on by the reddit folks, but they are far from the only ones playing this game. You have hedge funds getting hammered and others that are printing money, as always.

It's always tempting for people to try and add a rule that "fixes" the current issue for the folks that don't like what's happening without considering that the new rule is going to make things worse for lots more people (with no nefarious intent) that are just trying to trade and make a few bucks.
 
blueraincap said:
I really doubt those funds have really closed out the shorts and as if the retails know they are bluffing and still pushing the hands
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Yeah, someone from WSB called that bluff off as they didn't see any volume coming in that would confirm the operation.
 
newwurldmn said:
it definitely undermines fair and orderly markets but it’s not with the intent of defrauding people or market manipulation. A million people talking about a stock is no different than one guy in CNBC talking about it.
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Your point is a good one, but what happens with the SEC will likely hinge on 'intent'. That's something we don't fully understand yet. Was there an individual or group behind the manipulation and, if so, what was their interest in the scheme? The SEC won't hestitate if they think they have a case, they'll even go after kids. See https://en.wikipedia.org/wiki/Jonathan_Lebed
 
bluelou said:
Your point is a good one, but what happens with the SEC will likely hinge on 'intent'. That's something we don't fully understand yet. Was there an individual or group behind the manipulation and, if so, what was their interest in the scheme? The SEC won't hestitate if they think they have a case, they'll even go after kids. See https://en.wikipedia.org/wiki/Jonathan_Lebed
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I doubt the SEC can prove that one or a small group of individuals had the intent to manipulate the market. Engineering s short squeeze is not illegal btw.
 
ktm said:
It always surprises me the number conspiracy theorists and anti hedge fund people posting here - not sure why, but you guys are supposed to be traders, right?

I watched as Tucker Carlson tried to get Charles Payne to explain this to the public last night. They missed the ball pretty badly, but managed to get in some "stick it to the man" stuff that I keep seeing parroted all over. But who is "the man" today? Is it the gov't or the hedge funds? It seems to change depending on what's happening.

Most of you guys know that thousands and thousands of reddit traders aren't going to blow through 40M shares of a stock trading at $350 in a day, much less the other names that are starting to tremor from short squeeze activity. There has been some media about a few of the players that are involved (Gabe at Melvin, Chanos & Ken Griffen to name a few) and throwing around billions trying to get on one side or another. Another article said BlackRock may have scored a few billion in the last week on GME. This may have started and may be getting egged on by the reddit folks, but they are far from the only ones playing this game. You have hedge funds getting hammered and others that are printing money, as always.

It's always tempting for people to try and add a rule that "fixes" the current issue for the folks that don't like what's happening without considering that the new rule is going to make things worse for lots more people (with no nefarious intent) that are just trying to trade and make a few bucks.
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Agree completely even if you did mention conspiracy theorists in the first sentence and Tucker in the next. :)
 
El OchoCinco said:
Hedge Funds been doing it for decades and now people are upset? A group of people decided to squeeze the shorts and it worked.....seems fine to me. Shorting stocks is quite risky.
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The retailer is forbidden to make any money. The "professionals" are allowed to do anything to milk the retailers.

ElCubano said:
Hedge funds that got smoked are probably crying as it is all over CNBC. Cuban talking about 1 holding day period before you can sell etc.

So I buy a stock and it goes down in minutes I can’t sell without getting penalized...shut up
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So HFT should also hold their positions for 1 day??? That would be the end of HFT. HFT is even not able to make any money if they have to hold their positions for 15 minutes.
That will never be accepted.
 
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