Alright, despite requests, no sane person started this thread. So, in the spirit of the times, a “retard” has to take charge!
Perhaps we could continue the discussion here about the tug-of-war between WSB and the big boys of the financial sector, so the Nokia thread, etc., doesn’t get filled with it.
I would like to add the following request to the opening post:
I hope that Inderes, the messenger of Finnish popular capitalism, takes a strong stance on this blatant market manipulation happening across the pond. It cannot be justified in any way that trading and freedom of speech are restricted on behalf of corrupt brothers. Although Inderes does valuable work in protecting private investors from “craziness” and bubbles, I believe the matter has now reached new spheres. Popular capitalism is not doing well.
Nothing good will come of these restrictions, and I suspect this will be a good catalyst for instability in both the financial and real worlds.
Today, it’s clear that some external party has started influencing market dynamics; for example, some brokers only allow users to sell their hype-rated stocks. This has been significantly visible in the selling prices today, Thursday, January 28, 2021, from one hour after the US opening onwards. One could even say directly that many of these are temporarily cooling down, and rapidly.
The old proverb, “a crow does not peck out a crow’s eye,” fits this case well. They set out to protect their own, and strongly. Using any means necessary when they couldn’t compete fairly.
It’s not quite fair to the sellers that millions are banned from buying. I’m surprised that some people are cheering this on. Now, a much larger group will lose their money than in a fair game.
I wonder if the intention here is to slap some wrists and show who’s in charge. You’d think some trading service would see an opportunity to grow their customer base a bit. It might just be that there will be fewer eager participants next week.
For goodness sake, please note that, for example, Robinhood doesn’t trade directly on the exchange; instead, it only forwards orders to its chosen market makers. If those market makers say it’s not worth the risk to accept those orders due to high volatility, then anyone using such a broker is left out in the cold.
Robinhood, among others, seems to have forwarded orders to Citadel, which in turn appears to have been funding Melvin and other fun little backroom dealings. This has enabled Robinhood’s free trades for its customers, but also created a dependency on these HFT (high-frequency trading) market makers.
It could be that the GME war will only escalate as a result of this, and people will start buying even more frantically through the open brokers. The case has also grown to such proportions in the media, and the WSB membership count is swelling like bread dough, so I’d bet it could still turn into a loss for the big boys.
It’ll be interesting to see, but I’m sure we’ll get a movie out of this in a year or two:
Blackberry and AMC are in a bad freefall, Nokia and GME have also turned badly into losses. Was this it, or again next week? On Reddit, people seem to be confused because they don’t know which app to trade with.
At least on the WSB forums, Nokia + other hype seems to be strong, as long as they can buy the stock without restrictions.
It may be that this restriction on trading is just fuel to the flames for these stocks, to which Nokia belongs, for example. And the WSB crowd will start buying Nokia + others as a countermove once the restrictions are lifted.
It would be interesting to see in retrospect whether some big players had prior knowledge of this buying ban and whether that information was exploited by shorting just before it came into effect. That’s what should be investigated there, rather than focusing on small traders.
I opened the bottle myself, and now we’re going with emotion, not reason.
Luckily, my money is in value stocks, excluding Nokia. But this really boosts my fighting spirit! In the United States, wealth disparities are on a completely different level than in Finland. We Finns can’t really understand how an average American feels.
{“content”:“At least I’m a bit pissed off about the GME case. It’s totally okay for a hedge fund to short 138% of a company’s stock and use high-frequency trading, etc. But then, when a bunch of retail investors and janitors beat up the guys with gelled hair using their own methods, big brother immediately comes to the rescue.”,“target_locale”:“en”}
What makes me laugh is that these modern Don Quixotes attack with Robinhood as their sword, which pushes their orders to those HFT operators. Then they cry when these operators decide to protect their own asses. It’s hard to see Robinhood making that decision, because their earnings are based on those order volumes, so it’s probably not in their interest to silence trading. Of course, I could be wrong.
