For years short sellers had their fun. They do fundamental research, short, and then let everyone know. They don't hold back on fear mongering.
And this worked for years. But nothing works forever. The US are entering bubble area and money is being thrown at stocks left & right.
Massive & highly advertised short positions lead to short squeezes, and it is happening more frequently. It had to backfire eventually.
The price of GME rallied after the WSB forums decided to aggressively buy if you didn't know.
Laws on market manipulation are not very clear, what WSB did might get considered illegal or it might not.
Regulators might try coming up with something against it, or maybe not since they only act when price went down, if price went up (legally or not) they never care.
As everything else this won't work forever, regulators or not, I would be surprised it worked more than a few times.
I am seeing people say "learn a lesson that you should never short anything", that's a pretty "dumb money" thing to say.
What I would get out of this is don't ever get complacent, and avoid something if too many people are doing it/know about it.
GME short interest was over 100% and they screamed on roofs they were all in short. Really asking for it...
It's always fun to try and catch the market peak and with all the taxi drivers giving people stock tips it might not be very far, but there are a lot of variables, and I do not think it will be obvious (maybe it will).
Maybe cautious Wall Street guys will give up and just end up going all in with leverage.
I could not tell if the top is months away or years away, maybe it goes back and forth with a China culture war to replace the trade war fluctuations.
We might not get a clean top and crash at all, but rather something really choppy and bad, or the price could keep going up like the Venezuela, Argentina, and Zimbabwe stock markets. Crash while going up.
A possible good play some might want to consider is to short the more bad companies (that are not crowded, nice and under the radar), and buy the better ones.
When the crash comes these shorts would cover losses.
Forex has been quite a choppy unpredictable mess for me for the past 3 months, maybe everyone is too busy getting into crypto & stocks? Follow the money.
Follow the whale. The casual retail millenial whale. Until they run out of money. I don't think we are at max euphoria yet, but it can't be very far.
And this worked for years. But nothing works forever. The US are entering bubble area and money is being thrown at stocks left & right.
Massive & highly advertised short positions lead to short squeezes, and it is happening more frequently. It had to backfire eventually.
The price of GME rallied after the WSB forums decided to aggressively buy if you didn't know.
Laws on market manipulation are not very clear, what WSB did might get considered illegal or it might not.
Regulators might try coming up with something against it, or maybe not since they only act when price went down, if price went up (legally or not) they never care.
As everything else this won't work forever, regulators or not, I would be surprised it worked more than a few times.
I am seeing people say "learn a lesson that you should never short anything", that's a pretty "dumb money" thing to say.
What I would get out of this is don't ever get complacent, and avoid something if too many people are doing it/know about it.
GME short interest was over 100% and they screamed on roofs they were all in short. Really asking for it...
It's always fun to try and catch the market peak and with all the taxi drivers giving people stock tips it might not be very far, but there are a lot of variables, and I do not think it will be obvious (maybe it will).
Maybe cautious Wall Street guys will give up and just end up going all in with leverage.
I could not tell if the top is months away or years away, maybe it goes back and forth with a China culture war to replace the trade war fluctuations.
We might not get a clean top and crash at all, but rather something really choppy and bad, or the price could keep going up like the Venezuela, Argentina, and Zimbabwe stock markets. Crash while going up.
A possible good play some might want to consider is to short the more bad companies (that are not crowded, nice and under the radar), and buy the better ones.
When the crash comes these shorts would cover losses.
Forex has been quite a choppy unpredictable mess for me for the past 3 months, maybe everyone is too busy getting into crypto & stocks? Follow the money.
Follow the whale. The casual retail millenial whale. Until they run out of money. I don't think we are at max euphoria yet, but it can't be very far.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.