MiddleAgedKen wrote: ↑Fri Jan 29, 2021 10:36 pm I want to see one of these a week... one a day...in financial markets or wherever it's possible to ratf**k some sociopaths who richly deserve a good rogering. Hold, my bully boys, hold.
What the current "elites" have forgotten, is what Henry Ford and his generation of "elites" understood quite well.
The "little people" have to have some money, hopes & dreams too, if they are going to buy products & services from "the big boys".
"You can shear a sheep many times; but you can skin it only once."
"Life is a bitch. Shit happens. Adapt, improvise, and overcome. Acknowledge it, and move on."
naked shorts have been here for a LONG time.
When I was a stock broker it was a thing we learned about and were supposed to STRONGLY advise our clients against, unless they were rich and the position was small AND it was their play money.
Having said that running shorts is a common thing, it becomes interesting when the shorts gang up on a stock, or when the shorts are wrong and get squeezed.
Much like the short can be a self fulfilling dive to the ground for a stock, a short squeeze is often a rocket ship up for the price of the stock. As the squeeze hits, the shorts have to cover which means buying the stock to cover the short. This drives the stock price up, which makes more shorts HAVE to cover their positions by buying the stock at the new higher price, which means more shorts are put in a bad spot... rinse and repeat. In the attempt to cover a short squeeze, a stock can go from $8 to $80 in a day.
So long as the market allows for both sides to get burned, I see no issue. Unfortunately, that is often NOT the case.
"Those who hammer their guns into plows will plow for those who do not." ~Thomas Jefferson
My little part of the blogosphere. http://blogletitburn.wordpress.com/
Precision wrote: ↑Sun Jan 31, 2021 12:16 pm
naked shorts have been here for a LONG time.
When I was a stock broker it was a thing we learned about and were supposed to STRONGLY advise our clients against, unless they were rich and the position was small AND it was their play money.
Having said that running shorts is a common thing, it becomes interesting when the shorts gang up on a stock, or when the shorts are wrong and get squeezed.
Much like the short can be a self fulfilling dive to the ground for a stock, a short squeeze is often a rocket ship up for the price of the stock. As the squeeze hits, the shorts have to cover which means buying the stock to cover the short. This drives the stock price up, which makes more shorts HAVE to cover their positions by buying the stock at the new higher price, which means more shorts are put in a bad spot... rinse and repeat. In the attempt to cover a short squeeze, a stock can go from $8 to $80 in a day.
So long as the market allows for both sides to get burned, I see no issue. Unfortunately, that is often NOT the case.
