All about the Reddit, Gamestop and Wall Street mess
Translated from: https://threader.app/thread/1354498295377354752
I'm no stock market expert, but I'm living from the inside a historic thing. Everyone will already know about the Reddit, Gamestop and Wall Street mess, well, a lot of dark things have happened in these last two days. I'm going to do one thing I've always wanted to do, I'm opening thread:
To give you some context, a Wall Street fund (people with a lot of money) is playing "short" with Gamestop. To simplify, this means that if their stock goes down, they take a lot of money.
Well, in reddit we have agreed and we have made the share price take off from about 10$, up to 300$ today. The idea is easy, buy shares and do not sell. This, of course, is making Melvin Capital, in this case, lose a lot of money.
The stock is rising 100% daily to unimaginable numbers, but along the way, we have received several attacks to try to interrupt the rise, I start with the first one:
1. Coordination of several companies to force the stock down. How do they do this? By buying a lot of shares and selling them in a very short time, causing a drastic fall in the price.
This makes investors think that the "bubble" has burst, and they want to pull out all their shares at once, thus causing the price to fall even more, inciting other investors to pull out their money... and so on. Attached are photos of 3 coordinated attacks:
Attack 2. Seeing that this did not work, it was time for Fake News. Several of the most famous trading and investment media published the news that Melvin Capital had already gotten rid of the "short" shares it had.
Strange as it may seem, to get rid of these "short" shares they have to buy more Gamestop shares. Thus, it is something "remarkable" in the share price.
This caused GameStop's premarket to go from +130%, to +40%, that is, they lowered the share price by 90%. Soon after, Reddit users made calculations and came to the conclusion that this was a lie.
The numbers didn't add up, GameStop's volume hadn't changed enough. We're talking about Melvin Capital having billions of dollars invested short GameStop, and there had been no radical change in stock market volume.
Soon after discovering that this was a lie, the news disappeared from the websites.... The premarket recovered and returned to +100%. It was time for the stock market to open, and the attacks continued.
Attack 3. At the opening of the stock market, all the trading applications for investing of "non-professional" users are down. We are talking about RobinHood, Etoro, Ameritrade... the most used applications of reddit users, all fall, preventing the purchase of + shares.
This makes the stock drop from about $300 to $250. After a while, the apps recover and the price goes back up to $300. We continue that this does not end here.
Attack 4. Bots. Suddenly, the Reddit forum is full of junk posts from newly registered people. Last week we were 2M users, as of today, it has risen to 3millons. All the new posts refer to other stocks, trying to divert attention to other markets.
Among which are Nokia or BlackBerry for example. And not only that, but the shares of these companies equally soar, Nokia gaining even 100% in just a few hours. Attached photos:
Thank goodness the forum Moderators are doing a great job and cleaning the forum of all this garbage, people start voting "dislike" to this kind of posts, and "liking" GameStop's posts, making the bots get lost in oblivion.
Attack 5. Social networks. With the same idea as the previous one, they want to divert GME's attention to other markets. How do they do it? In this case, Twitter. They create the hashtag SaveAMC, and it becomes a trending topic in the US.
What is AMC? It's a movie theater company that was facing bankruptcy because of Covid. Suddenly, its stock goes up 200% for no apparent reason. Anyway, GameStop's stock is unaffected and continues to rise.
#reddit #gamestop #wallstreet #thinkabout
Translated from: https://threader.app/thread/1354498295377354752
I'm no stock market expert, but I'm living from the inside a historic thing. Everyone will already know about the Reddit, Gamestop and Wall Street mess, well, a lot of dark things have happened in these last two days. I'm going to do one thing I've always wanted to do, I'm opening thread:
To give you some context, a Wall Street fund (people with a lot of money) is playing "short" with Gamestop. To simplify, this means that if their stock goes down, they take a lot of money.
Well, in reddit we have agreed and we have made the share price take off from about 10$, up to 300$ today. The idea is easy, buy shares and do not sell. This, of course, is making Melvin Capital, in this case, lose a lot of money.
The stock is rising 100% daily to unimaginable numbers, but along the way, we have received several attacks to try to interrupt the rise, I start with the first one:
1. Coordination of several companies to force the stock down. How do they do this? By buying a lot of shares and selling them in a very short time, causing a drastic fall in the price.
This makes investors think that the "bubble" has burst, and they want to pull out all their shares at once, thus causing the price to fall even more, inciting other investors to pull out their money... and so on. Attached are photos of 3 coordinated attacks:
Attack 2. Seeing that this did not work, it was time for Fake News. Several of the most famous trading and investment media published the news that Melvin Capital had already gotten rid of the "short" shares it had.
Strange as it may seem, to get rid of these "short" shares they have to buy more Gamestop shares. Thus, it is something "remarkable" in the share price.
This caused GameStop's premarket to go from +130%, to +40%, that is, they lowered the share price by 90%. Soon after, Reddit users made calculations and came to the conclusion that this was a lie.
The numbers didn't add up, GameStop's volume hadn't changed enough. We're talking about Melvin Capital having billions of dollars invested short GameStop, and there had been no radical change in stock market volume.
Soon after discovering that this was a lie, the news disappeared from the websites.... The premarket recovered and returned to +100%. It was time for the stock market to open, and the attacks continued.
Attack 3. At the opening of the stock market, all the trading applications for investing of "non-professional" users are down. We are talking about RobinHood, Etoro, Ameritrade... the most used applications of reddit users, all fall, preventing the purchase of + shares.
This makes the stock drop from about $300 to $250. After a while, the apps recover and the price goes back up to $300. We continue that this does not end here.
Attack 4. Bots. Suddenly, the Reddit forum is full of junk posts from newly registered people. Last week we were 2M users, as of today, it has risen to 3millons. All the new posts refer to other stocks, trying to divert attention to other markets.
Among which are Nokia or BlackBerry for example. And not only that, but the shares of these companies equally soar, Nokia gaining even 100% in just a few hours. Attached photos:
Thank goodness the forum Moderators are doing a great job and cleaning the forum of all this garbage, people start voting "dislike" to this kind of posts, and "liking" GameStop's posts, making the bots get lost in oblivion.
Attack 5. Social networks. With the same idea as the previous one, they want to divert GME's attention to other markets. How do they do it? In this case, Twitter. They create the hashtag SaveAMC, and it becomes a trending topic in the US.
What is AMC? It's a movie theater company that was facing bankruptcy because of Covid. Suddenly, its stock goes up 200% for no apparent reason. Anyway, GameStop's stock is unaffected and continues to rise.
#reddit #gamestop #wallstreet #thinkabout