Potentially more problems caused by GME

Hey guys,

I noticed something last night (see below) and just wanted to throw it out there and see if others see it too / agree… and finally what’s your thoughts?

I don’t typically hold many penny stocks, spacs or hype stocks but I have noticed the ones that I do own their price has been inversely proportional to GME stock, so where GME has gone up these stocks have gone down and it made me think, are a lot of the retail traders now selling penny stocks in order to buy GME stock which is causing this or is it just coincidence?

They are selling everything and going all in on the opportunity they see. Few of my shares are red and I’m putting it down to this

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It’a not only that. Hedge fund manager have to sell their existing positions to cover GME and other shorts as they have stock as collateral. Some say that’s why the market might be down.

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To quote Mohamed El-Erian in Bloomberg

Whether the stock is GameStop or AMC, the pattern is similar and played out bluntly on Wednesday morning. A group of small-scale investors communicating through electronic platforms identify and embrace small-cap and heavily shorted stocks. The resulting price volatility gives way to an enormous breakout on the upside. As more investors pile on, short sellers face higher margin calls, with some forced to cover their shorts and others going further and “degrossing” their positions — reducing both shorts and longs concurrently. In turn, this leads to the sale of more liquid stocks, putting pressure on the broader market indexes. As an illustration, this was the price configuration some 30 minutes into Wednesday’s highly volatile trading session: GameStop up 93%, AMC up 217% and the S&P 500 index down 1.7%.

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It’s fascinating, I’m thinking of buying more of my bread and butter shares while these crazy dips are going on.

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I bought some PEP and SBUX at nice discounts yesterday. Maybe they will go lower today and I can buy even more.

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I have started to do the same, I plan to drop some cash in each day this week as I think it will go lower and lower the more GME pulls people away!

My thoughts are I wonder if its going to get worse if people start then pilling into AMC, NOK and BB hoping they get the same crazy returns as GME or if this has already happened… I know its happened or happening with AMC currently!

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Hopefully it causes a few of the ones I really want to add more of into my long terms to fall some :slight_smile: averaging down is always better than averaging up

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100% I would take this too! :+1:

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I put £3,200 and £1,000 + in profit so far !! AMC all the way ! :smiley:

I have £100 in AMC and currently up about 30% I think

I read an argument somewhere, perhaps on these forums or on twitter, that it could be either due to retail investors selling stocks to fund GME/AMC buys and/or it could be funds needing to sell stock to fund their short positions/losses. No idea but yes lots of stocks down I think linked whether sentiment or actual reasons.

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Now they only let you sell. I would guess that both the market makers and hedge funds are deep in the red!

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It is realy awfull that they let you buy on the pro accounts. But we retail ‘‘dumb’’ invenstors are not qualified becouse of the risk, we see on what side you playing t212.
To upgrade your account to a Pro you will have to meet at least 2 out of the 3 criteria:

  • You have traded with an average of 10 times in each of the last 4 quarters on CFD or Forex in significant size with Trading 212 and/or other providers.

  • You hold an investment portfolio ( including cash savings and financial instruments (exceeding 500 000 EURO)

  • You have worked for at least 1 year in the financial sector, in a position that has given you knowledge of CFD trading.

Cool criteria to scam us.

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That’s pretty much standard for how the market determines if you are a professional or not.

Surprisingly I actually can meet two of the criteria, does it cost to go premium? Sure I remember reading somewhere that only retail traders get free trades

Also now they have locked everyone out of GME and AMC does this mean NOK and BB are the next to explode!

Here’s hoping they do :rocket::rocket::rocket::rocket:

Actually depends what they mean by significant size to whether I can meet two or not

I am thinking of buying some NOK for this reason