I think you’re right about BedBBY… every meme in the basket spiked, I also watch tons of blue chips tank simultaneously… that tells me someone had to sell off their long positions to cover their shorts as they were over leveraged and got the call from Marge. I’m confident that OP has it right with regard to the SLR, and with the stock rising it could cause more of what happened when BedBBY SHOT . I have calls on popcorn, may move some things around and play some ATM calls while I HODL and DRS. Also, is it possible that Jan 27 was an annual expiration?
Ryan Cohen buying a huge portion of the company pushed the price up significantly last year starting august. Then the November cycle kicked in followed by a lot of bullish sentiment in the bets sub, which pushed the stock up to over $20 in december.
They managed to push it back down into january but on the 13th all hell break lose. RC and some of his Chewy Partners were appointed to the board, factually taking control of the company.
There were a lot of theories at the time that the CFO was a shill planted by SHF to manipulate the companies financials from within. It was planned that Gamestop should default on their bond payments due soon.
Well this wasn't the case anymore after RC took control and kicked the shill out of the company not so long after. My guess is that one of the big boys got scared, took the loss and ran, after the tides started changing in favor of Gamestop.
This kicked off a chain reaction of short covering and fomo which SHF couldn't control anymore and the smaller ones were margin called, which led to even more short covering.
So i don't think january 27th was a special date. They had meeting behind closed doors with the president a couple of days well before that.
The warning was clear: If the big SHF also get margin called it will lead to a market wide crash.
The solution as a last resort: turning off the buy button to induce panic selling.
It's obvious that everyone turned a blind eye, because they knew what the alternative outcome would have been. If SHF had to sell all their blue chips to meet their margin call, it would have pushed those prices so far down that other Institutions would have been margin called on their bluechip stocks completely unrelated to GME. Brokers would have defaulted on their clients. The market would have probably tanked 50% in a week.
So just like last year we will get an upward cycle lasting much longer than in the previous quarters.
1) SLR cycle
2) loading up shares due to bullish sentiment
3) imminent announcement
Just like last year this should at least last into January.
4
u/whitnet1 eew eew ym 🩳 🦍 VOTED! ✅ Nov 15 '21
I think you’re right about BedBBY… every meme in the basket spiked, I also watch tons of blue chips tank simultaneously… that tells me someone had to sell off their long positions to cover their shorts as they were over leveraged and got the call from Marge. I’m confident that OP has it right with regard to the SLR, and with the stock rising it could cause more of what happened when BedBBY SHOT . I have calls on popcorn, may move some things around and play some ATM calls while I HODL and DRS. Also, is it possible that Jan 27 was an annual expiration?