For now, NOK, BB, AMC like you mentioned are all the big ones. There are way to many what-if's for me to me consider this a possibility, but I can't write it off completely. Given the data does not reflect that, we now must turn to several events that could act as catalysts for either a further squeeze or a complete shutdown. It would be insane to not open a short position when this hit nearly $500 especially if you lost half of your companies money; what better way to get it back? I also firmly believe a significant amount of short positions were opened on the way back down by both HF's and individuals. I have been asked a lot what my PT is and when I expect the squeeze to happen, but let me be clear. NOTE: ALL OF THESE ASSUMPTIONS I AM MAKING ARE BASED ON THE 42% REPORTING. If you want to learn more about FTD's and the implications there please visit that site or review my last post which has links to follow for further reading. Given the most recent data and the multiple upcoming catalysts I am still very bullish on a GME short squeeze. It’s going to be an amazing one. Some, probably the worst positions, were covered on the way up. While VW may have been the last previous big short squeeze and Gamestop is the current one, I am not sure it will take very long for the Ant army to coalesce around the next one now that a formula to do this has been found. Please see this SEC document to explain how this would work. This is rare. Giving us the 5 day chart below (includes after hours trading): The closest parallel is the Volkswagen short squeeze in October 2008. The Ant army is doing what the hedge funds used to do by attacking positions that parties with limited resources are not able to defend. What you do with your money is entirely up to you. This data will help further drive where I think this is all going to end. thanks! Over the past few years, the shorts made a ton of money, because GameStop’s business has not been doing well. The reasoning is because the fines for committing the crime are far less costly than letting the event take place. Too bad i didn’t get to buy the stock on a discount . It’s become increasingly obvious over the past 12 months – but the underlying market structure has shifted. Let's use the absolute worst case scenario being reported of 41.95%, which mind you is still extremely high for one stock: The shorts in fact covered and this was a short squeeze. Sadly, this puts us in the guessing range yet again. People on WSB took this as a bull signal and mass buy GME on Friday morning. It’s a weekly newsletter that goes out every Sunday, and rounds up the week’s posts so you never miss anything. To break $1000 we would need a big bull run to catch the shorts, trigger gamma squeezes, and keep momentum until they are caught and underwater. It got to the point where Melvin Capital (which had a big short position on GameStop) was down by $3 billion (out of a $12 billion portfolio). BlackBerry soared 185% on Tuesday, and Nokia also saw a surge. 02/24 - The next FINRA short interest information will be made readily available to the public. Very timely. Incest/Taboo 07/02/20: A New Investigation (4.50): Agents Liz and Harry investigate drugs and porn. When I say "it" I am referring to this entire phenomenon, not one short squeeze. I see several possibilities and would like to discuss them in the comments. How would we get an abrupt short squeeze? Sorry, your blog cannot share posts by email. Is it time to all-in? Now I have no deeper insight into how this is going to play out. Given that hedge funds have transferred $23.6B to small investors in Gamestop in just one month and some have seen their bet of 50-100K grow to 27M, placing a limited bet one can afford to lose of say 1-2 weeks salary is not a bad idea. Syfe Cash+ Review: 1.75% yield on your cash. This scenario does not pass the math check using the 41.95% figure. This allowed it to maintain its short position without closing it off and locking in the loss. Rachel LevineRachel L. Levine is an American pediatrician who has served as the Pennsylvania Secretary of Health since 2017. The reason for this is I believe in Cohen and his team to turn this into something unexpected and I imagine an eventual ROI. In fact, the content is not directed to any investor or potential investor and may not be used to evaluate or make any investment. Truthfully, this isn't worth examining just yet. This is more speculation than investment but given that relatively small bets can actually lead to life changing returns, it may be worthwhile to buy a few lottery tickets to the game. It will certainly be interesting and I don't even to speculate on the market reaction to this even because it could go a ton of different ways; it will be an important date nonetheless. It will require close monitoring of wsb, not to mention that such intended manipulation is completely illegal. The content here is for informational purposes only and should NOT be taken as legal, business, tax, or investment advice. Again, using 41.95% this is highly likely and the most reasonable case. Management of the Western Australia nickel miner had no idea what was happening, until a younger family member explained. Level of short interest – both % short and absolute amounts 2. Disclaimer: I am not a financial advisor. There may be 10 non-subscribers viewing for every subscriber so the amount of firepower the Ant Army can bring to the table is essentially unlimited and more than any hedge fund. I think shorts certainly covered some of their positions, but not all. Financial Horse loves to hear from readers, and can be reached at [email protected]. Many mistakes were made on friday by andrew left. One of the largest is the people. I guess another way to do it is to pull up the list of most shorted hedge fund stocks, and just buy them all. There is no hacking involve. This is highly unlikely unless there is another global sentiment. Let's not speculate too much here either, it's just another dataset that will bring light to the direction this is headed. Before I begin I would like to address something I have been encountering on my posts in the comments section. For the remainder of this thesis, I will be assuming that some of the short positions that exist are newly opened positions at a higher price unless someone has a counter-claim as to why that wouldn't be possible/probable. If the hedge funds start liquidating to meet margin calls / cover shorts, that will lead to broader market weakness and could be a buy opportunity. Where it gets quite murky, is the data includes 01/27 information. A VW/Porche moment occurs where a large buyer picks up a large portion of the company. Really interesting psychology. A massive bull run. However, that does not mean it will ever actually happen. It crashed within 17 seconds. That was Monday, and of course the move only infuriated the online mob even more, leading to even more buying. From here "The close-out requirement states that a participant of a clearing agency needs to take immediate action to close 4 out a fail to deliver position in a threshold security that has persisted for 13 consecutive settlement days by purchasing securities of like kind and quantity.". I digress. You can read more about the saga here, the hedge funds eventually lost about $30 billion then. I hope this narrative of purchasing heavily shorted companies comes to a close soon because a lot of people are going to lose a lot of money simply buying up companies because they are heavily bet against. I hope we can discuss some of these points in the comments like adults and truly try to grasp this wild situation we are all in. Income from wages and salaries that consumers earned in December ticked up to a new record, as high earners and executives were making lots of money working from home though 10 million other people, mostly lower income, had lost their jobs; and income from unemployment insurance for those less … 02/19 - In my last post, I discussed the Failure To Deliver (FTD) conundrum. Several things need to take place for this to be completely over, at which point I will either post my gains or my losses from the adventure. Now, I've heard it a lot regarding the 02/09 data. The world has gone crazy but there is some method to the madness here. Which triggers a Gamma Squeeze sending the short price higher. (Guide), 20 small-cap Russell 2000 index companies, Which is the best Stock Broker for Singapore Investors? If you enjoy it, do consider supporting Financial Horse and getting access to premium content! Another post was titled For those who do not understand the inevitable GME short squeeze, was at the time "inevitable" because math. Level of normal trading activity 3. Now, I think the website is having some issues storing cookies because it will show the outdated 226% unless you open it up in incognito. The shorts partially covered and this was a partial short squeeze, but the price increase was mainly hype and gamma squeezes. Not sure how many of you have been following the story, so I’ll do a quick recap (Vox has a more detailed one if you want more info). This brings me to my first claim. Millions of bag holders (not just WSB) are still holding and in fact, averaging down, thereby purchasing more. It's possible that shorts opened new positions at $50 thinking it was going back to $12. My argument on the bull side is more along the lines of what I listed above. 02/18 - Keith Gill aka u/DeepFuckingValue will testify before congress and RH CEO Vladimir will be attending. The new shorts that entered at lower levels wouldn't be too hard to catch, however, they are probably low volume, so when they buy to close, it won't be large enough volumes for massive peaks, but a bull run very well could lead to these lower tiered shorts closing, triggering a gamma squeeze. Please also see Privacy Policy and Terms of Use. The institutions will try to bring the price down, but it remains to be seen who will win this battle. Previous short squeeze case studies such as VW or KBIO were all about someone engineering a way for effective float to evaporate, suddenly leaving what was previously a relatively reasonable aggregate short interest position in a world of hurt. The shorts didn't cover anything and this was a globally hyped price increase in conjunction with several gamma squeezes. Joining now for the hope of a potential round 2 squeeze should only be done in a speculative manner with money you are willing to lose. Take A Sneak Peak At The Movies Coming Out This Week (8/12) #BanPaparazzi – Hollywood.com will not post paparazzi photos There are extremes on both sides from "get over it, the squeeze happened" to a cult like mentality on the other extreme. Another opportunity could be to buy stocks in the broader market. It started on Wednesday when Andrew declare a livestream to lay out reasons why GameStop is worth $20 on Thursday.