- Joined
- Jan 28, 2021
There is a resaon this is affecting the markets in China:
The Chinese have a stake on this too, they may just be as afraid as the Hedge fund guys are.
/r/wsb autists taking on a wallstreet hedgefund. Elon musk involved as always / wallstreetbets / gamestop - Gamergate 2: financial boogaloo
- Thread starter theshitposter
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The Chinese have a stake on this too, they may just be as afraid as the Hedge fund guys are.
- Joined
- Sep 19, 2020
- Joined
- May 25, 2020
>Half a decade round of protests and general faggotry did absolutely nothing to change the status quoThe article in question, since it's paywalled on ZH's actual site.
Imagine paying for political commentary. Imagine THINKING people want to pay for political commentary.
Last Friday (Jan, 22) we advised readers who thought they had missed the move in GameStop (they hadn't), to position appropriately in the most shorted Russell 3000 names which included such tickers as FIZZ, DDS, BBBY, AMCX, GOGO and a handful of other names, as it was likely that the short-squeeze was only just starting.
View attachment 1884372
We were right and all of the stocks listed above - and others - exploded higher the coming Monday, and all other days of the week, with results - encapsulated by the WallStreetTips vs Wall Street feud - that has become the top conversation piece across America, while on WSB the only topic is the phenomenal gains generated by going long said most shorted stocks. To wit, the basket of top shorts we compiled on Jan 22 has tripled in the past week.
View attachment 1884373
And while some are quick to blame last week's fireworks on the "dopamine rush" of traders at r/wallstreetbets who seek an outlet to being "copped up with little else to do during the pandemic" (as Bloomberg has done), the reality is that at the end of the day the strategy unleashed by the subreddit is merely an extension of the bubble dynamics that were made possible by the Federal Reserve (of which Bloomberg is also a very staunch fan) pumping trillions and trillions of shot-gunned liquidity into a financial system where there are now bubble visible anywhere one looks. In short, main street finally learned that it too can profit from the lunacy of the money printers at the Eccles building, and some are very unhappy about that (yes, it will end in tears, but - newsflash - $300 trillion in debt and $120BN in liquidity injections monthly will also end in tears).
That aside, one week later, Goldman has finally caught up with what Zero Hedge readers knew one week ago, and all the way down to a chart showing a basket of the most-shorted Russell 3000 stocks...
View attachment 1884369
Goldman's David Kostin has published a post-mortem of what happened last week, writing that "the most heavily-shorted stocks have risen by 98% in the past three months, outstripping major short squeezes in 2000 and 2009."
He then points out something we discussed in "Hedge Funds Are Puking Longs To Cover Short-Squeeze Losses", noting that while aggregate short interest levels are remarkably low (imagine what would have happened has shorting been far more aggressive marketwide) "the -4% weekly return of our Hedge Fund VIP list of the most popular hedge fund long positions (GSTHHVIP) showed how excess in one small part of the market can create contagion."
View attachment 1884371
As an aside, and as we showed previously, as the most shorted stocks soared.
View attachment 1884368
Hedge funds were forced to cover (as well as paying for margin calls), and as part of the broader degrossing they also had to sell some of the favorite hedge fund names across the industry, in this case represented by the Goldman Hedge Fund VIP basket.
View attachment 1884367
Yet what may come as a surprise to some, even as hedge funds deleveraged aggressively and actively cut risk this week, gross and net exposures "remain close to the highest levels on record" (something which may come as a huge surprise to Marko Kolanovic who has been erroneously claiming the opposite), suggesting that if the squeeze continues, hedge funds are set for much more pain.
View attachment 1884366
According to Goldman Sachs Prime Services, this week "represented the largest active hedge fund de-grossing since February 2009. Funds in their coverage sold long positions and covered shorts in every sector" and yet "despite this active deleveraging, hedge fund net and gross exposures on a mark-to-market basis both remain close to the highest levels on record, indicating ongoing risk of positioning-driven sell-offs."
With that in mind, here are Kostin's big picture thoughts:
With the average WSB portfolio up double digits this past week, one can see why hedge funds are upset. Anyway, moving on:
Thanks Goldman, and yes, your "brisk assessment" would have been more useful to your clients if it had come before the event (like, for example, this) instead of after.
Kostin then goes on to point out that the "mooning" in the most shorted stocks took place even though aggregate short interest was near a record low (imagine what would have happened had short interest been higher), which is odd because historically, "major short squeezes have typically taken place as aggregate short interest declined from elevated levels. In contrast, the recent short squeeze has been driven by concentrated short positions in smaller companies, many of which had lagged dramatically and were perceived by most investors to be in secular decline" to wit:
Of course, there is nothing "historical" about what happened last week, because - as we all know - the biggest difference between the typical short squeeze of the past and the recent rally in heavily-shorted stocks "was the degree of involvement of retail traders, who also appear to have catalyzed sharp moves in other parts of the market." Why thank you WSB, but that's ok - you will be handsomely rewarded.
View attachment 1884364
So why does this matter? One simple reason: contrary to the bizarrely nonchalant optimism spouted earlier this week by JPMorgan's Marko Kolanovic who said "any market pullback, such as one driven by repositioning by a segment of the long-short community (and related to stocks of insignificant size), is a buying opportunity, in our view," Goldman has a far more dismal take on recent events, and writes that "this week demonstrated that unsustainable excess in one small part of the market has the potential to tip a row of dominoes and create broader turmoil."
He then picks up on what he said last weekend when responding to Goldman client concerns about a stock bubble, which we summarized in "Goldman's Clients Are Freaking Out About A Stock Bubble: Here Is The Bank's Response", and which turned out to be 100% warranted, and writes that "most of the bubble-like dynamics we highlighted last week have taken place in stocks constituting very small portions of total US equity market cap. Indeed, many of the shorts dominating headlines this week were (prior to this week) small-cap stocks. But large short squeezes led investors short these stocks to cover their positions and also reduce long positions, leading other holders of common positions to cut exposures in turn."
As a result, Goldman's Hedge Fund VIP list declined by 4%. Which is a problem because as Kostin concludes, "in recent years elevated crowding, low turnover, and high concentration have been consistent patterns, boosting the risk that one fund’s unwind could snowball through the market."
Translation: if WSB continues to push the most shorted stocks higher, the entire market could crash.
And since Kostin admits that "the retail trading boom can continue" as "an abundance of US household cash should continue to fuel the trading boom" with more than 50% of the $5 trillion in money market mutual funds owned by households and is $1 trillion greater than before the pandemic, what happens in the coming week - i.e., if the short squeeze persists - could have profound implications for the future of capital markets.
>A bunch of reddit users bring to light the fact that the general public can just fuck the entire market up in a couple of weeks
>Economist are discussing the possibility of this being the dawn of a new era
a couple of Redditors JUST'd the entirety of the left
- Joined
- May 25, 2013
it would be really great if one of the Seven Clients is Winnie the Pooh, and this becomes random yankees shitting their money away on stupid shit and collapsing the chicoms
- Joined
- Sep 9, 2019
Protests are easy to stop. Just arrest people. Legal daytrading? Good luck stopping them without lobotomizing the stock market.
- Joined
- Jan 28, 2021
Bro, do you expect that the modern left will do anything? They are just people who only know how to whine and fight like babies and don't know how to organize anything.
- Joined
- May 25, 2020
Wouldn't be the first time they've tried
- Joined
- Sep 25, 2018
Why do you think they're pulling out all of the stops? Goldman goes under and that's a lot of bankrupt """foreign""" billionairesIsn't Goldman the backer bank of Citadel?
- Joined
- Apr 1, 2017
I can't wait to see what kind of "market correction" that the Biden Administration performs on Monday.
Freezing the stock market, or even rolling it back, has been used before.
True, it was for like 9-11 or Desert Storm and shit like that.
But this is a hedge fund losing billions and possibly not being able to afford more human/monkey hybrids to knife fight on their yachts. Why, hedgies might be affected.
HEDGIES!
You know that defending a Hedgie is just as important as killing an entire army in 90 hours or a massive terrorist strike and shit like that!
I wanna see Biden or Kamala prance out on stage with Wall Street jizz all over their face and tell us how they're going to prevent the bad ol' terrorist EAT_MY_ASS8989 from hurting Wall Street!
Freezing the stock market, or even rolling it back, has been used before.
True, it was for like 9-11 or Desert Storm and shit like that.
But this is a hedge fund losing billions and possibly not being able to afford more human/monkey hybrids to knife fight on their yachts. Why, hedgies might be affected.
HEDGIES!
You know that defending a Hedgie is just as important as killing an entire army in 90 hours or a massive terrorist strike and shit like that!
I wanna see Biden or Kamala prance out on stage with Wall Street jizz all over their face and tell us how they're going to prevent the bad ol' terrorist EAT_MY_ASS8989 from hurting Wall Street!
- Joined
- Oct 31, 2019
I just got a boner.The article in question, since it's paywalled on ZH's actual site.
Imagine paying for political commentary. Imagine THINKING people want to pay for political commentary.
Last Friday (Jan, 22) we advised readers who thought they had missed the move in GameStop (they hadn't), to position appropriately in the most shorted Russell 3000 names which included such tickers as FIZZ, DDS, BBBY, AMCX, GOGO and a handful of other names, as it was likely that the short-squeeze was only just starting.
View attachment 1884372
We were right and all of the stocks listed above - and others - exploded higher the coming Monday, and all other days of the week, with results - encapsulated by the WallStreetTips vs Wall Street feud - that has become the top conversation piece across America, while on WSB the only topic is the phenomenal gains generated by going long said most shorted stocks. To wit, the basket of top shorts we compiled on Jan 22 has tripled in the past week.
View attachment 1884373
And while some are quick to blame last week's fireworks on the "dopamine rush" of traders at r/wallstreetbets who seek an outlet to being "copped up with little else to do during the pandemic" (as Bloomberg has done), the reality is that at the end of the day the strategy unleashed by the subreddit is merely an extension of the bubble dynamics that were made possible by the Federal Reserve (of which Bloomberg is also a very staunch fan) pumping trillions and trillions of shot-gunned liquidity into a financial system where there are now bubble visible anywhere one looks. In short, main street finally learned that it too can profit from the lunacy of the money printers at the Eccles building, and some are very unhappy about that (yes, it will end in tears, but - newsflash - $300 trillion in debt and $120BN in liquidity injections monthly will also end in tears).
That aside, one week later, Goldman has finally caught up with what Zero Hedge readers knew one week ago, and all the way down to a chart showing a basket of the most-shorted Russell 3000 stocks...
View attachment 1884369
Goldman's David Kostin has published a post-mortem of what happened last week, writing that "the most heavily-shorted stocks have risen by 98% in the past three months, outstripping major short squeezes in 2000 and 2009."
He then points out something we discussed in "Hedge Funds Are Puking Longs To Cover Short-Squeeze Losses", noting that while aggregate short interest levels are remarkably low (imagine what would have happened has shorting been far more aggressive marketwide) "the -4% weekly return of our Hedge Fund VIP list of the most popular hedge fund long positions (GSTHHVIP) showed how excess in one small part of the market can create contagion."
View attachment 1884371
As an aside, and as we showed previously, as the most shorted stocks soared.
View attachment 1884368
Hedge funds were forced to cover (as well as paying for margin calls), and as part of the broader degrossing they also had to sell some of the favorite hedge fund names across the industry, in this case represented by the Goldman Hedge Fund VIP basket.
View attachment 1884367
Yet what may come as a surprise to some, even as hedge funds deleveraged aggressively and actively cut risk this week, gross and net exposures "remain close to the highest levels on record" (something which may come as a huge surprise to Marko Kolanovic who has been erroneously claiming the opposite), suggesting that if the squeeze continues, hedge funds are set for much more pain.
View attachment 1884366
According to Goldman Sachs Prime Services, this week "represented the largest active hedge fund de-grossing since February 2009. Funds in their coverage sold long positions and covered shorts in every sector" and yet "despite this active deleveraging, hedge fund net and gross exposures on a mark-to-market basis both remain close to the highest levels on record, indicating ongoing risk of positioning-driven sell-offs."
With that in mind, here are Kostin's big picture thoughts:
With the average WSB portfolio up double digits this past week, one can see why hedge funds are upset. Anyway, moving on:
Thanks Goldman, and yes, your "brisk assessment" would have been more useful to your clients if it had come before the event (like, for example, this) instead of after.
Kostin then goes on to point out that the "mooning" in the most shorted stocks took place even though aggregate short interest was near a record low (imagine what would have happened had short interest been higher), which is odd because historically, "major short squeezes have typically taken place as aggregate short interest declined from elevated levels. In contrast, the recent short squeeze has been driven by concentrated short positions in smaller companies, many of which had lagged dramatically and were perceived by most investors to be in secular decline" to wit:
Of course, there is nothing "historical" about what happened last week, because - as we all know - the biggest difference between the typical short squeeze of the past and the recent rally in heavily-shorted stocks "was the degree of involvement of retail traders, who also appear to have catalyzed sharp moves in other parts of the market." Why thank you WSB, but that's ok - you will be handsomely rewarded.
View attachment 1884364
So why does this matter? One simple reason: contrary to the bizarrely nonchalant optimism spouted earlier this week by JPMorgan's Marko Kolanovic who said "any market pullback, such as one driven by repositioning by a segment of the long-short community (and related to stocks of insignificant size), is a buying opportunity, in our view," Goldman has a far more dismal take on recent events, and writes that "this week demonstrated that unsustainable excess in one small part of the market has the potential to tip a row of dominoes and create broader turmoil."
He then picks up on what he said last weekend when responding to Goldman client concerns about a stock bubble, which we summarized in "Goldman's Clients Are Freaking Out About A Stock Bubble: Here Is The Bank's Response", and which turned out to be 100% warranted, and writes that "most of the bubble-like dynamics we highlighted last week have taken place in stocks constituting very small portions of total US equity market cap. Indeed, many of the shorts dominating headlines this week were (prior to this week) small-cap stocks. But large short squeezes led investors short these stocks to cover their positions and also reduce long positions, leading other holders of common positions to cut exposures in turn."
As a result, Goldman's Hedge Fund VIP list declined by 4%. Which is a problem because as Kostin concludes, "in recent years elevated crowding, low turnover, and high concentration have been consistent patterns, boosting the risk that one fund’s unwind could snowball through the market."
Translation: if WSB continues to push the most shorted stocks higher, the entire market could crash.
And since Kostin admits that "the retail trading boom can continue" as "an abundance of US household cash should continue to fuel the trading boom" with more than 50% of the $5 trillion in money market mutual funds owned by households and is $1 trillion greater than before the pandemic, what happens in the coming week - i.e., if the short squeeze persists - could have profound implications for the future of capital markets.
- Joined
- Jun 24, 2020
Ever since Dorito Benito's downfall, their every word and action has shown they are hellbent on being the most loathesome Lords of Shit Mountain in history. So I expect them to burn it all down to Own the Plebs.
- Joined
- Jan 26, 2019
As much as I love this. Wouldn't it just be quackin crazy if the market did crash allowing oligarchs to initiate the great reset they wanted so badly?
Just think it's super funny, haha.
Just think it's super funny, haha.
- Joined
- Jun 24, 2020
I mean, they already were going to. It was just a matter of time.
- Joined
- Jan 28, 2021
Burn down the stock market to beat the normies
Humble Shitpost Merchant
kiwifarms.net
- Joined
- Aug 3, 2019
If they want it to happen, it would happen. The market would crash sooner or later regardless.
- Joined
- Feb 22, 2017
Money is literally the only thing that matters in
- Joined
- May 25, 2020
Let them, they are already near the event horizon of public malcontent, let them push themselves into the grave they dug
- Joined
- May 25, 2013
yeah like I said earlier, the roof was going to collapse anyway, us residents getting to kick the builder in the dick slightly a few days before we die in the rubble is a nice extra
- Joined
- Feb 28, 2019
People smell blood in the water, and KOSS is bleeding. It's not that complex.
I'm hoping BB shoots up, cause that's the horse I chose. Monday might pick up some GME if my banker overlords decide to allow me to do so.
They organized the exact same "you can't observe the vote; everyone go home we'll count tomorrow; they're gone quick count these 99.999% biden votes; what a shock a 4 AM surge for Biden that gives him the state" thing across at least 5 events in 4 states. We have audio of them training people to screw over the election security measures. If you think the left doesn't know how to organize, you're simply wrong.
What I do think the left has overestimated, is how much Woke Capital and WokeCo supports woke causes. If the radical left starts targeting wall street -- if they stop being useful subverted idiots -- they'll be ignored to death, subverted by the NeoLibs, and suppressed.
Hence the shell game to get the left to attack WSB and 4chan because "LITERALLY FINANCIAL GGOOBERGRAPE" and "THEY NOTICED MOST BANKERS ARE JEWISH, THAT'S A HATE THOUGHTCRIME!"
Even their tard wrangler, AOC, quickly fled away once Ted Cruz joined in and she almost had to do something more than spew platitudes from her cock holster.
- Joined
- Mar 15, 2019
The "woke" corporate hedge fund talking heads interjected racism, homophobia, bigotry, etc.. into their talking points directing them straight at the Reddit Crew. They beat my projected timeframe by 23 hours and 30 minutes.