People said Tesla would crash when Tesla doubled a year ago from $200 to $400, and then to $900, etc., and then it did a 5-1 split, etc. Yes it did crash 20% in August, but from a price that was so high that it was still considerably higher than it was last year when the pundits were warning of a bubble.
Few foresaw the S&P 500 would surge 70% off the lows from Covid and make new highs later that year. The pundit consensus what that that it would be a bad, deep, long bear market.
Same for the post-Covid tech boom, which few foresaw too.
GME is not crashing as everyone is expected it to, even with Robinhood restricting buys. It is up huge today. I think this has a lot more to run, IMHO. More shorts will get squeezed out next week.
Like Tesla, GME may not really end badly at all and just keep going up and up.
I own some GME and not worried. Yeah, it is not that much of my total net worth, but I have found that heeding warnings of bubbles usually just means selling too soon.
If GME does crash, there will be no systemic risk or anything like that. It will be an isolated event.
The stock is worth what people think it’s worth. If people keep buying and holding, then it is worth what it is worth.
(1) fund degrossing as the initial driver - already happening
(2) everyone is being reminded of 99/00 mania
(3) uncertain regulatory environment surrounding trading
(4) worries of systemic risks created by bubble
GME going higher is likely to trigger it more than it dropping off right now
Are there other companies that have "hidden" short interest in this way? Are some of the big unexplained market moves in companies without short interest some of these "hidden" shorts unwinding before everyone finds out?
Is that legal? Manipulating report agencies to manipulate the value of a stock?
There are multiple Congressmembers interested in this situation. That could be a very dangerous game.
My key takeaways here are that there was probably a little fraud (maybe someone found a bug in some broker that let them do some sort of infinite shares glitch), maybe a little rolling of shorts (but not by anyone big), and probably a lot of writing of covered calls by the likes of Fidelity and Blackrock as a way to get income generation while at the same time acting as a limit sell order (albeit one that you can't take down). Coupled with some early botched PR and celebrity pumping etc, and even my own speculation, this feels almost Q-like in it's explosive growth and conspiracy-theory oriented thinking.
After everything I've seen this week I think I actually have the highest faith I've had in a long time in our financial system.
I saw a tweet that I cannot find right now, unfortunately. It showed that de-grossing M-W of this week was nearly at the same level as March of 2020.
Of course it might not happen.
