Lessons from last week - Is this a dead cat's bounce? GameStop the poster child

Lessons from last week -Gamestop the poster child

Congrats to those who held tight and did not join the sell off.

Market participants are concerned that if GameStop shares carry on with their meteoric rise in such a volatile fashion, it could force hedge funds who short the stock to sell other securities in order to raise cash or even be a sign of a larger bubble set to burst and hit retail investors.

Stocks rose on Today, the first session of February, as Wall Street appeared to shake off concerns about a speculative retail trading mania that largely drove the market’s worst weekly sell-off since October.

The Dow Jones Industrial Average gained 300 points, led by Intel and Goldman Sachs. The S&P 500 climbed 1.7% as all 11 sectors traded in the green, while the Nasdaq Composite jumped 2.6%.

GameStop, the brick-and-mortar video game retailer that has been the center of attention on Wall Street, fell as much as 34% and trading was halted briefly.

Let us see what happens with Silver the new frenzy?

Although some people believe it’s not yet over.

What your thoughts? Is the markest rebound a dead cat bounce?

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I feel like over the weekend and now on Monday some momentum from the Gamestop etc runs has dissipated. I think some people have made money and cashed out, some have bought near top and now down massively and some of those will/have panic sold once they have realised.

I think an interesting legacy from this event once its fully over is if it has brought in more long term money/investors than pre-event. Lots will have got burned and leave calling stocks in general a scam, others will have made big gains and may just take most of it out of market (as they were probably not long term investors anyway) but there must be some who have used this experience bad or good to no look more closely at markets and investing. So potential is more inflow of cash from savings of retail investors, the question is how long term or not it is.

The quote I am just keeping in mind, which whilst often oversued is be fearful when others are greedy, so I am just holding back some new funds (not all) i regularly invest to make sure have a pot to buy any crashes, as long term my stocks are gonna be winners so just need to gobble the wobbles.

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Your are spot on! the funny thing about all this; is that, in the past, it was the hedge funds that always initiate a sell-off (I know for a fact)and the armature investors will join and make losses, but this time it was the opposite. How the hunter became the hunted. some people believe that the big guy will still win but not this time. My reason is that they made big mistake which everyone can see by shorting over 100% of a stock so nobody is on their side, literally short themselves on leg.

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Yep, however will the retail investors chase artificial pumps (that are sold to them as ‘next gamestop’) in future that don’t work out and end up losing the money back? Thats the real game IMO, protecting the portfolio. I know friends started talking about Dogecoin etc and I am like…but…stocks are actual companies etc but no use.

My (boring) advice to anyone is if you made great gains through the volatility/luck of recent weeks, put that into solid stocks, that way your oversized initial gains are amplified in future. Example As £100 which say is up 50% is now £150 put into 5% gain per year stocks means you get a return on initial of 7.5% and has jump started your compounding journey, but £150 into a riskier stock which loses 50% (now £75) then that 5% is actually 3.75% on initial. Compound that for years and difference is massive

After 5 years at 5% the £150 returns £191 (£91+). £75 returns £95, less then initial (-£5)

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The bullish silver run started before all this WSB malarkey.

If you frequent WBS they are still focusing on GME and AMC. There’s a weird split of those who jumped on the post to help pump SLV and AG, and then a second post which basically said that’s what Citadel want you to do.

Citadel only own about 6m of the 610m shares. They have lots of calls but also $644m in puts.

They are also annoyed because media says that WSB are moving on, when it has only just begun.

Anyway Silver, yes I’m super bullish.

Next target is $34 to establish. After that $48. And if that can break the sky’s the limit.

It’s following the same pattern that Gold did.

Correct me if I am wrong Phil, as I dont know much about silver/gold etc. But Silver going up will largely benefit many big companies right who hold lots like JP Morgan I think I read. So even though some shorts on it that actually this is no longer a ‘activism’ and actually the WSB now looking to make money like hedge funders? Just curious noting against either side :smiley:

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Great perspective :100:

Also Silver is not infinite In supply’s but we see, who knows WSB is gonna buy up all the supply, lol

When it comes to Dogecoin, Thingy, if your into crypto , you will know what to do. The coin has a history of jumping up and Down so if you wanna buy it, just make you buy at the bottom. That’s my take

Well JPM own the most shares on SLV which is about 11m of the 610m.

WSB aren’t collectively behind this pumping of Silver. The original Silver post was just trying to piggyback on the retail mob mentality. There’s more negative than positive WSB support on SLV. They all want diamond hands and for followers to hold or buy more GME / AMC. They know if everyone shifted into SLV it could cause GME to collapse.

Silver was shifting over the last couple of months, the recent WSB just kinda brought attention to the shift. There is a shift where retail traders want a piece of the action so I’m expecting we might get a FOMO situation when Silver hits $34 as everyone and their dog jumps on it.

Each candle is a quarter of a year just to put it into context.

I generally agree, but to be more specific there is incredibly negative sentiment on SLV on WSB, not just more negative, pretty much entirely negative. There are lots of people running around talking about squeezing everything with very little understanding of… well anything. However, WSB is not one of those places as they are v.focused on GME and AMC to a lesser extent. They see everything else as a distraction atm.

To be honest, seeing the media’s push of Reddit buying SLV is almost enough to turn a person into a conspiracy theorist given that it can be disproven inside about 5 minutes or less.


There is A lot angles to the silver story actually. The paper silver and physical silver.
First, if physical silver is in short supply , when the options expire there will be a serious squeeze.

These are paper silver

This is a silly question no doubt, I’ve never bought metals or such as an investment. How does one even go about it? For example, can I buy a load of lithium? (given that the best you can do is buy into a company in the lithium supply chain, am I correct?)

Well it happened recently with oil, when oil collapsed, those who bought it could not take physical delivery, that why oil fall to 10 dollar a barrel. so yes in extraordinary circumstances.

The mining companies hoard huge amounts of lithium preemptively to control supply and thus prices. Pretty sure its the same with silver and gold. Dont think silver is the next gme, but hey who am I to know really

The impact of many people hoarding physical Silver is really unpredictable. As you know majority of the people involved in stacking silver are not really investors, as I have learned recently. As an investor am interested in paper silver not physical silver, so this could actually have a negative impact on price as opposed to what many people think. But its hard to predict the market. We watch and see. My advice to anyone is just test the waters. Don’t put your house deposit on silver thinking it’s gonna be the next GameStop. I Did rather look at SPCE.

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Then it isn’t conspiracy theory it’s conspiracy fact!

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