Investing General Discussion

LachiusTZ said:

Can it be expected to fall after the shorts are gone?

I am bullish on it, but this is fucking nuts

Click to expand...

Yes. At some point the shorts will have all capitulated, bought shares to closes out their short positions and the mad buying will normalize. It was one of the top most shorted stocks so dont ask me when this happens. I got no fucking idea. Maybe it his 2k by Friday

Sanrith Descartes said:

It does if the industry you are investing in is in a long slow death spiral. Consider you same advice about investing in the type writer industry 30 years ago. Or the film camera industry 20 years ago. Sometimes things are cheap for a reason.

Click to expand...

She was worried about things being expensive, not cheap. And what you describe would fall under tat whole quality thing.

wormie said:

She was worried about things being expensive, not cheap. And what you describe would fall under tat whole quality thing.

Click to expand...

I understand. In the current state of the world, I would not advise anyone building a long term portfolio to buy big oil. I say this as an owner of big oil. The opportunity cost of investing dollars into big oil vs the various other options make it a non-starter.

If we are talking a short term trade that is a different animal and I can definitely see some money making opportunities in energy. That wasn't my understanding of the situation however.

Mist said:

It's all in Fidelity not Vanguard.

Click to expand...

Why were you looking at vanguard mutual funds with your money at fidelity? I don't know much about them, but I'd give the same advice for their broad market ETFs if I knew what they were. Highly diverse and mainstream ETFs are where anyone should start their investment portfolio.

Sanrith Descartes said:

I understand. In the current state of the world, I would not advise anyone building a long term portfolio to buy big oil. I say this as an owner of big oil. The opportunity cost of investing dollars into big oil vs the various other options make it a non-starter.

If we are talking a short term trade that is a different animal and I can definitely see some money making opportunities in energy. That wasn't my understanding of the situation however.

Click to expand...

Sounds like it’s not prices being too high she should worry about but the quality of the companies.

WMT up almost 4% on the press release...

Sanrith Descartes said:

Click to expand...

I forgot to add context:
So those who may not have a lot of experience with this and why it is important consider; the term "short" means to literally borrow shares of a stock and to sell them. The intention is to wait for the stock to go down in price and buy the shares at the lower price to replace the ones you borrowed. The difference in price is profit. But... you pay a borrowing cost for those shares you borrow. If the price of the stock goes up instead of down then you are losing money on the trade. Unlike buying a stock, selling it short has infinite loss potential. Yes, infinite.

So why this tweet is important. Huge amounts of short positions are being closed out by hedge funds. This means they are buying shares on the market. This drives prices up. This is one reason the markets have been going up with no real apparent good news. Its one reason TSLA exploded up. A short squeeze. Lots of shorts giving up and buying stock to close their short positions.

At some point the shorts will finishing closing and that artificial buying will end. Also at some point the hedge funds will feel safe enough to start shorting again and the wave of selling will begin.

This is some of the behind the scenes stuff that is good to begin to learn about as an investor. Its rarely the retail investors moving the markets. Its the institutional investors.

Flobee said:

George Soros pulled most of his money out of the financial sector. Been hearing rumblings about bank insolvency on the horizon. I listen to a lot of perma-bears though so take it for what it is.

Why George Soros Sold Most of His Financial Stocks - Market Realist

Click to expand...

Financials are in a tough spot with near zero interest. Interest incomes is a big revenue tool for them. You have to really dig into the bank's financials. Unlike many other companies, banks have lots of moving parts. Loan exposures is a big factor to consider. And banks aren't identical, they each play in different pools (mortgages, credit cards, institutional lending, investment banking etc) to different degrees. If memory serves, BAC is by far the biggest mortgage lender in the US.

XOM call to put ratio hit 9:1 this morning. 3,400 call contracts traded at the 46$ strike expiring on Friday. For reference total put contracts at all strikes is less than 300. Lots of money betting XOM moves higher this week.

So how batshit is the market? Exactly 30 days ago I got stopped out of a position and shifted the money to NVDA which had experienced a tiny pullback. I figured its NVDA and maybe I could get 3 or 4% out of it by the end of the year but add it for the long term. 30 days later I am up over 16% in NVDA.

In case you think the mouth breathers are only competing with you in WOW. Does this answer the question of why stocks go up for no real reason?

LachiusTZ said:

Who in the holy fuck thinks Tesla is worth 2000 today?

Click to expand...

Klarity apparently.