Pump of the Day

Sorry I was referring to GME specifically, I think GME has unique circumstances behind it this squeeze was ready to happen without this recent hype and it’s already in the position ready for it to happen, the only way this won’t happen is if every retail investor sold their shares before Friday and the price tanked to under $115

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One of the Youtube idiots that gave financial advising on GameStop.

That can be illegal in 2 aspects, giving financial advising without legal license and giving false information to pump a stock. Now that is identified, SEC could bang on his door.

Bloomberg’s news article: SEC ‘Monitoring’ GameStop Frenzy as Warren Pressures Regulators

Suspensions already exist before GME, AMC, BB, NOK. There are part of the game. Investors should get used to that.

If someone give false information on a stock to increase it’s value, that is Pump and market manipulation, no matters who does it, a private person or a hedge fund.

An illustration for 90’s environment, made on The Wolf of Wall Street (2013). The difference is communication, from telephone to social media:

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But were people, like the youtuber in Bloomberg news article that “advised” investing on GME because it was a good undervalued company. Reality check, it’s a near bankruptcy company.

It’s seem like the people who “advised” in investing on Hertz last year, when it was on the path of bankruptcy. After that, some retail investors were crying to tribunal asking their money back.

About the only close-suspension, you have a recent example, FCA banned all derivative-crypto investments, like the BTCE ETF in Trading 212. Now only close transactions, no buys.

What I wanted to say with the FCA ban, was that, some events can trigger a close-suspension (on BTCE ETF is an definitive one). That it’s an existing risk on any financial instrument.

The video I was referring to:

I’m not talking about the GME in particular, I’m talking pump phenomenon on general, the existing ones and most probably more will come in the future.

This is ridiculous and mania. Bubble has to burst soon, US market is a joke. Plus GBP getting stronger I have no interest in US.

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  • Case in point: About 44 circuit breaker halts were triggered in the first two hours of trading on Wednesday as volatility reigned high at cult favorites GameStop (NYSE:GME), AMC Entertainment (NYSE:AMC), Express (NYSE:EXPR), Bed Bath & Beyond (NASDAQ:BBBY), Nokia (NYSE:NOK) and Koss (NASDAQ:KOSS). Halts give traders time to digest news and adjust their trades over the typical five-minute pause, but have done little to help smooth rapid movement generated by the WSB Reddit army. The wild swings also saw online brokerages like Robinhood (RBNHD), Charles Schwab (NYSE:SCHW), E*Trade (NASDAQ:ETFC) and TD Ameritrade (NASDAQ:AMTD) hit by extended service disruptions.

  • Thought bubble: The mob mentality on WallStreetBets is stirring regulatory and legal concerns, as well as the attention of the White House. Treasury Secretary Janet Yellen is monitoring the situation, while the SEC is looking into the short and gamma squeezes that are sending some shares sharply higher. Brokerages like TD Ameritrade have even restricted trading in GameStop and AMC, and Nasdaq (NASDAQ:NDAQ) CEO Adena Friedman even suggested that her exchange could halt trading activity if a stock was targeted by internet users, which would enable investigations into possible manipulation and allow investors to “recalibrate.”

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Hotlist:
https://www.trading212.com/en/hotlist

Not really used this feature much tbh, but over the last 24hrs (viewed @ 10am GMT 30/01) the Hotlist indicates Trading212 “owners” have jumped up nearly 60K positions in AMC & GME…


cheers

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And the Fever arrives (again) on cryptos, after 2 new Musk pumps:

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Elon Musk tweeted out a picture of a magazine cover of “Dogue” — a play on popular fashion title “Vogue.” The post showed a picture of a dog, which some Reddit users took as the billionaire supporting the rally.

Source: https://www.cnbc.com/2021/01/29/dogecoin-cryptocurrency-rises-over-400percent-after-reddit-group-talks-it-up.html

The effects:

why does musk get to have all the fun?

A good Motley Fool article explaining the mechanics in Short and Gamma Squeezes.

Not only the short investors are squeezed, but also the options selling platforms (market-makers). This is the reason why some trading platforms suspended trading or have limited trading in some stocks, because it can erase all trading platform’s liquidity and put them in serious troubles or in bankruptcy. A good case-study for Trading 212 if it thinks in entering in options business. @Team212 :wink:

that was the same article I checked to confirm what I knew about squeeze’s and reinforced my view that people getting involved in Europe, solely in the stock side, without any access to options were just performing a standard opportunistic pump and dump.

regardless of loss of trading ability the stock was going to hit a peak and rapidly reverse robbing not the short sellers, but late, unsuspecting retail investors of their funds.

the details of how the action puts a strain on brokers is consistent with the post made earlier by AlexK.

So the retail army wants to crush the bad guys, the short-sellers, following their leader:

Keith Gill, aka Roaring Kitty, aka DeepF-----gValue, aka the slayer of short-sellers

And now the irony… :rofl:

according to the Wall Street Journal, Gill made an admission: he was a short-seller.

“I occasionally short stocks, it’s becoming a bigger part of my process, I’m trying to incorporate it more and more, but I still focus mostly on the long side,” said Gill on July 13. “You’ll see me short, sometimes just because I’m bored. The timing of it is so difficult as everyone knows.”.

https://www.bloomberg.com/news/articles/2021-01-29/roaring-kitty-who-inspired-gamestop-surge-has-tips-to-find-next-moonshot-stock

oh dear, who would ever guess that the vigilante justice warrior behind this… is a self righteous hypocrite :stuck_out_tongue:

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Don’t say this out loud, the zombie mob could hear you. :smiley:

Roaring Kitty…Roaring Kitty…Roaring Kitty…

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In Europe, it’s also possible buying options, via Interactive Brokers for example and other brokerages.

The Pump & Stock it’s like a ponzi scheme, only the creators and early people entering could profit and have a success exit, the last people entering could end holding the bag.

indeed, but the accessibility is so minute that almost the entire european market only has exposure to the stocks, not options. I feel bad for everyone who fell for the push, got hyped and bought in and only realised once they were in that its 10x harder to get out.