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Old 06-27-2016, 11:23 AM  
DaFace DaFace is offline
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Investing megathread extravaganza

A place to talk about investing stuff.

Last edited by DaFace; 02-19-2021 at 06:35 PM..
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Old 12-09-2021, 03:46 PM   #12031
Buehler445 Buehler445 is offline
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Quote:
Originally Posted by Hog's Gone Fishin View Post
Pulled from stocktwits:

#Citadel has been shorting companies like AMC/GME and others. Hedge funds like Citadel suffered massive losses in the hundreds of millions . The company is said to even have taken action against it asking the broker to suspend trading. During a testimony Citadel CEO Griffin admitted the short positions were now closed. A search of Bloomberg however revealed that Citadel not only have failed to cover the short positions from January, but those have actually grown exponentially.

Citadel can use Chinese commercial paper and bonds as collateral. Once Evergrande is declared bankrupt and has a D status, the hedge funds can no longer use the Chinese paper and bonds as collateral. As a result, they are unable to meet multi-billion dollar margin requirements and must sell shares to cover margins or close short positions. In doing so, hedge funds must buy AMC/GME at any price. Even if the market collapses, AMC and GME shares will soar. Apes ... you are going to be filthy rich.
Right, so maybe I'm misreading this, but if the short positions are closed, aren't the margin requirements now gone?

At least with my hedging account, margin requirements have to be covered before the close of day. CBOT seats have been lost because of failure to cover.

I have a hard time believing NYSE will allow multi-month failure to maintain margin requirements.
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Old 12-09-2021, 03:59 PM   #12032
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This market has topped. I'm going to be selling the rips for a while.
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Old 12-09-2021, 04:21 PM   #12033
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OUCH!

Out of the 84 stocks I've been following, 77 ended the day in the red.
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Old 12-09-2021, 05:11 PM   #12034
Hog's Gone Fishin Hog's Gone Fishin is offline
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Originally Posted by lewdog View Post
Yawn.

Similar things being said since summer.
Patience will be rewarded.


I hope.
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Old 12-09-2021, 07:21 PM   #12035
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cpi numbers gonna make tomorrow an even bigger blood bath
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Old 12-10-2021, 12:40 AM   #12036
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Quote:
Originally Posted by Iconic View Post
cpi numbers gonna make tomorrow an even bigger blood bath
So are they still trying to pedal the transitory narrative or have we given up on that.
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Old 12-10-2021, 04:58 AM   #12037
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Originally Posted by Buehler445 View Post
Right, so maybe I'm misreading this, but if the short positions are closed, aren't the margin requirements now gone?

At least with my hedging account, margin requirements have to be covered before the close of day. CBOT seats have been lost because of failure to cover.

I have a hard time believing NYSE will allow multi-month failure to maintain margin requirements.
Ken Griffin lied to Congress and is in for a world of hurt it appears. They haven't covered their short positions.

https://www.linkedin.com/pulse/citad...ll-havent-a-p-
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Old 12-10-2021, 07:54 AM   #12038
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No one talking about AMC CEO selling more of his stock?
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Old 12-10-2021, 08:48 AM   #12039
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Quote:
Originally Posted by Hog's Gone Fishin View Post
Ken Griffin lied to Congress and is in for a world of hurt it appears. They haven't covered their short positions.

https://www.linkedin.com/pulse/citad...ll-havent-a-p-
Seems to me that would still be a brokerage problem not an investor problem. I'm far from the authority on here, but ain't nobody trusting individual investors to follow the rules, that's why they come down hard on the brokerage houses.

At least that's the way it works in commodities.
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Old 12-10-2021, 09:00 AM   #12040
Hog's Gone Fishin Hog's Gone Fishin is offline
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Originally Posted by Chazno View Post
No one talking about AMC CEO selling more of his stock?
He needed Christmas money or tax planning, Nothing to see there.
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Old 12-10-2021, 09:03 AM   #12041
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Quote:
Originally Posted by Hog's Gone Fishin View Post
Ken Griffin lied to Congress and is in for a world of hurt it appears. They haven't covered their short positions.

https://www.linkedin.com/pulse/citad...ll-havent-a-p-
I read that and there was several wonky assertions in there, but if they've found a way to actually do that shit... Man.

I can't wait for the Michael Lewis book about it.
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Old 12-10-2021, 09:11 AM   #12042
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Quote:
Originally Posted by Hog's Gone Fishin View Post
Ken Griffin lied to Congress and is in for a world of hurt it appears. They haven't covered their short positions.

https://www.linkedin.com/pulse/citad...ll-havent-a-p-
You realize this is basically a Facebook post, right?
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Old 12-10-2021, 09:18 AM   #12043
Hog's Gone Fishin Hog's Gone Fishin is offline
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You realize this is basically a Facebook post, right?
You realize Debby Downer already has a job, right?
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Old 12-10-2021, 09:28 AM   #12044
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So, I don't know if this is a viable information but it appears to be at least reasonable. Although it is pretty slanted towards the reddit investor.

https://franknez.com/when-do-shorts-...positions-amc/

This pretty much says they don't have to cover their shorts...ever. And I don't know what is a valid borrowing rate, but I'd sit tight if money was costing my .6%.

RE: Bad earnings for Hedge funds. I don't know the accounting rules for professional traders. For personal traders, you don't realize gain/loss until you sell. I know there are different rules for professional traders, because you can only take 3000 loss and have to carry the rest.

I'm guessing there are some market to market adjustment rules to close the quarters. If that's the case, why are we just now hearing about it, not at the end of Q1 2021? That's when the major GME price spike was and their short positions would look REALLY ****ING BAD on a Balance Sheet.

If there is no market to market adjustment and they realize the gains when they cover the shorts, that would mean they've closed some of the shorts (or lost their ass somewhere else, but that's unlikely). If they've closed some of the short positions, then we haven't seen the price action that was expected from closing the short. Unless they only closed a few of many short positions, in which case they're ****ed right nice and would probably fold their tent and go home.

By the way, I googled Melvin Capital and Citadel's fiscal year ends and they're both 12/31. Accordingly, fiscal year earnings won't be disclosed until probably February, so any profitability numbers would come from quarterly releases, and again, why was Q1 2021 not the bombshell? That's when the giant price spikes were.

I don't know what's actually going on here, but there isn't a real clear picture on much.
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Old 12-10-2021, 09:30 AM   #12045
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Originally Posted by Hog's Gone Fishin View Post
You realize Debby Downer already has a job, right?
By all means, risk your money on the advice of an MBA student with zero actual experience in investing. Have fun.
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