Brick by brick, the citadel is falling...

Brick by brick, the citadel is falling...

What a overwhelming past couple days.?A comment of mine on LinkedIn regarding the stock market and GameStop gained a lot of traction (see initial picture).?So much so that someone screenshot my comment (attached to this post), post it to Reddit and it made it to Reddits top five for the whole website (top of the Superstonk channel too; https://www.reddit.com/r/Superstonk/). There's 10 million users on Reddit I believe. Crazy huh?

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On LinkedIn, there were CEOs, CFOs, data scientists/architects, etc.?agreeing with what I posted. There is truth to it. People want a free market; not market manipulation. Now, I know time is money but how you do make some of your money??Probably through the stock market either with direct investing or through your work. Perhaps your company invests in ETFs? Are you aware that ETFs that contain GameStop get used to short the stock? They do and it bleeds red, just to short it.

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My original post goes over a quick review of what's happening with GameStop but it's not just GameStop that's affected; AMC, KOSS, Blackberry, etc... Though once there is a MOASS (Mother of all short squeezes), it'll be many stocks that explode while many others implode due to forced liquidation and covering. The stock market is a ticking time bomb. GameStop, in my opinion, is where it began and where it will end.

When you cause a driving infraction, you can get dinged a fine and demerit points.?In Canada, if you accumulate 15 point, you lose your license for 30 days.?Next time 90 days.?After that, you lose your license and start over.? Reckless driving can cause death...but so can reckless financial decisions made by those responsible with how the market operates. One person in the USA went to jail for the 2008 debacle. One. Iceland had 25 convictions. The harshest jail term given was eight years. This event ruined lives and eight years was the maximum given in Italy. https://ig.ft.com/jailed-bankers/ ?

How is it that you can lose your license fairly quickly?depending on the infractions yet Citadel (https://www.citadelsecurities.com/) can get fined over 50 times for violating FINRA, REGSHO and SEC regulations with several instances documented (based on how one can interpret it) as 'willful' naked shorting (https://files.brokercheck.finra.org/firm/firm_116797.pdf) and handling the money of retail investors like you and I? It's insanity.?The below is one of MANY infractions, which is public knowledge.

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Did you know that they execute around 47% OF ALL U.S. LISTED RETAIL VOLUME making them the industry's "top" wholesale market maker.??Do a search in that link for 'Short sale' and 51 results appear. Search the word 'Short' and you get 85 results. Despite being made illegal after the?2008–09 financial crisis,?naked shorting continues to happen because of loopholes in rules and discrepancies between paper and electronic trading systems (https://www.investopedia.com/terms/n/nakedshorting.asp#:~:text=Naked%20shorting%20is%20the%20now,before%20they%20sell%20it%20short.). Retail does not control the stock market and people are afraid of the ones that do control it. This needs to change.

There also seems to be a misconception among the community of short sellers covering and closing their positions. Covering your position just means you're doing something shady to kick the can down the road more. Closing means you've delivered the share. How are market makers et all going to deliver on the outstanding naked shorts? They can't, hence MOASS. CNBC acknowledges naked shorts here (https://www.youtube.com/watch?v=XpHcA8Y1mWI The 1:43 mark says it all with a look of 'I messed up').?Media is complacent in all of this too. Are you aware that when you search a stock in Google and when those couple articles of Motley Fool come up, that it is actually owned by a hedge fund? (https://www.bizjournals.com/washington/news/2019/05/02/the-motley-fool-is-putting-together-a-hedge-fund.html).?Market Watch; guess who owns a part of them??(https://www.reddit.com/r/GME/comments/msuj3g/guess_who_is_also_with_citadel_marketwatch_do_i/).??And we're talking about retail ganging up and causing manipulation? Really?

Citadel manages (re: https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/) $384,926,232,238 in market securities (as of December 2020).?$295,347,948,000 were used for calls/puts which is basically gambling.?If you put in a call, you're betting the price of a stock will go up and if you put in a put, you're betting the price of a stock will go down. Citadel upped their short position to $57,506,000,000 in 2020 meaning, they expected many stocks to drop in price, to even...go into bankruptcy (because there's no other explanation for shorting a stock tenfold like was done).?GameStop was one of those stocks; and boy did they get attack ferociously until a roaring kitty and a chair made of man came into the picture .?It got shorted to no end and continues to get shorted and relayed through Dark Pools. Citadel attempted to state that 'securities owned are held at various global financial institutions and at the DTCC"; but SRCC 801 was implemented by the DTCC (https://www.dtcc.com/-/media/Files/Downloads/legal/rule-filings/2021/NSCC/SR-NSCC-2021-801.pdf) which means they don't have the shares.?As Atobitt puts it, it's finger pointing.

I made note that GameStop is short 500-1000% of the float; here's some math showing it could be on the low end, 1.2 billion shares (1,665% SI); High: 2.3 billion (3,322% SI)(https://www.reddit.com/r/Superstonk/comments/ol4gv0/short_shorter_ep_3_post_sneeze_and_final_shares/).?Who is protecting individual investors? I also referenced that this will be the equivalent to 2008; how can it not when they execute around 47%??Would the stock market even function if Citadel goes belly up??Fidelity buy/sell for GameStop has been 3/4:1 and this past week up to 7:1...yet the price dropped and continues to get strangled around the same price.?How about Fail to Delivers, just for June; over 1.3 million FTDS (and this is nothing new for GameStop). There are so many patterns you can see with these "meme" stocks such as two weeks ago; totally natural, right?

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Out of this all, I find it quite amusing that a couple hours after my initial post, the stock dropped $16 after hours with no news and super low volume.?Maybe to kill momentum of the excitement that LinkedIn and Reddit was talking about it??No one will know because there was no news. It recovered the following day with more momentum created by another LinkedIn user speaking out (Mo). Professionals are now seeing what's going on in the market and people are speechless that it's being discussed now on LinkedIn; a place where professionals gather and, well...keep it professional. Finances is part of that and so is mental health (in which Finances can create for professionals). The more one is educated, the better.

This market is not a free market. This is the type of power that shorter/hedge funds have; making things fit their narrative.? Retail is dumb, they'll get bored/need money soon/buy into something else...and this will all go away; wrong. Look at the positions of those who Liked or Commented on my original comment. Does this look like dumb money? In my opinion, this is a battle of hedgefunds vs hedgefunds and retail; two great white sharks fighting and retail fish picking up the scrap at the bottom of the ocean. Many people on Reddit said they didn't comment but saw the post, because they're afraid of repercussions or getting attacked. Retail is not dumb money but if you're worried about being hacked, use a good password manager (shameless plug, sorry: https://1password.com/affiliate/promo/families/).

At the moment, based on all the share purchases, GameStop should be around $500-600 a share company (again, based on the daily volume for the last six months along with buy sell ratios, short %, DP %, etc..).?It's trading at $169 currently and continues to get attacked mightily.?The OBV does not lie (three days ago)

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The more exposure that is created about this, the sooner the stock exchange can move forward with change; towards a true free market.?All I am doing is educating on what is going on. There's many more intelligent users that can go a lot further in-depth with this, so check out the forums on Reddit where a lot of research gets put up. Till then, I won't be purchasing anything else but GameStop till this saga comes to a MOASS..err, end.?Not financial advice.

-Just a random IT dude, Tom?


Fahimeh Omid ,PMP ,PgMP, MSPM

Sr. Technical Project Manager

3 年

AmaIng , thanks a lot Tom

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Kevin Berthold

Securities Market Integrity Advocate

3 年

I believe that to win, we need to be laser focused in pin-pointing the exact wrong. That is the lie we (society) have been led to believe with false, nonsensical verbiage. The truth is that all short sales are naked. That’s what makes them short, uncovered and NAKED. We cannot continue to allow shorts to collect proceeds by purporting to convey ownership that they DO NOT OWN while fabricating counterfeit shares. #allshortsarenaked

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Daniel Y. Lim, CPA (WA)

CFO at Neo Battery Materials Ltd.

3 年

Very proud Canadian!

Heath T.

Senior Data Engineer at Priority Health

3 年

Thanks for sharing

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Tom Majewski

Transforming Operations & Driving Excellence | Leadership Innovator | Tech-Savvy with Proven Results

3 年

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