Nibbles Ninja

Nibbles Ninja

Nibbles & bits from Alan Fahrner

Putting the Thumb on the Investment Scale

Posted on Author AlanPosted in Nibbles

In this article, it discusses the effect of day traders on the stock market, including the recent GameStop fun:

How GameStop, Bernie Madoff, and Dave Portnoy Have Mets Fans Panicked
Less than a decade after the Bernie Madoff scam roped in the Wilpons and supposedly handcuffed the New York Mets payroll as a result, the team’s fans are panicking that new financial market weirdne…

One interesting note:

In the old days, retail investors were as a rule always the ones being outsmarted by hedge funds. Now the tables are turned.

It probably won’t surprise you that NASDAQ is going to make sure the little guy can’t do that again:

Nasdaq CEO Friedman says the exchange will halt trading in a stock if they link unusual activity to social media chatter
Adena Friedman told CNBC if the Nasdaq matches unusual trading activity with social media chatter, it may engage with the SEC to investigate.

Remember folks, only the elite are allowed to game the system.

UPDATE: Tucker Carlson chimes in (sorry if a painful ad plays first):

And, as Tucker notes, Discord shut an associated trader community down:

Discord bans the r/WallStreetBets server
Discord says it did not ban the server due to financial fraud.

Discord says it did not ban the server for financial fraud — rather, it was banned because it continued to allow “hateful and discriminatory content after repeated warnings.”

But, someone associated with the banned server pointed out:

We’re suffering from success and our Discord was the first casualty. You know as well as I do that if you gather 250k people in one spot someone is going to say something that makes you look bad. That room was golden and the people that run it are awesome. We blocked all bad words with a bot, which should be enough, but apparently if someone can say a bad word with weird unicode icelandic characters and someone can screenshot it you don’t get to hang out with your friends anymore. Discord did us dirty and I am not impressed with them destroying our community instead of stepping in with the wrench we may have needed to fix things, especially after we got over 1,000 server boosts. That is pretty unethical.

Update January 28, 2021:

More articles (first one comes with a curse word warning)…

On Gamestop, Why Hedge Funds Are Not the Good Guys, Why Redditards Are An Ally in this Particular Fight, and How MSM is Lying to Us (Again) - TheDonald
So let me begin by saying this: I am in on the GME squeeze, yes. I have been in since early December. I have made 5 figu
Robinhood blocks purchase of GameStop, AMC, and BlackBerry stock
Users can still close their positions but can’t trade more

Here is Robinhood’s CEO’s explanation:

To be honest, it didn’t seem an explanation beyond claiming they needed to do it and nobody made them.

“Portnoy calls for people to be jailed over hedge fund scandal in scathing interview”

PLEASE NOTE: My reposting, quoting, or linking to items from social media, other sites, et cetera, does not equal endorsement. Please also see "What Really Matters."