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2 hours ago, Down by the River said:

Maybe because Yellen said she'd consider taxing unrealized gains? I dunno... wow. 

That would be the most stupidest idea ever.  

If you're even thinking of holding non-distributing assets long-term, you'll constantly have to liquidate part of your portfolio just to pay taxes.  

Imagine you put $50000 on Tesla stocks 1 year ago.... and now that it went up 10x, you are now a taxable liability of $250,000 x (whatever tax rate). 

 

I also get the feeling that they won't be implementing a Unrealized Tax Loss Credit.  

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2 minutes ago, KoreanHockeyFan said:

The power of Reddit :lol:

Nothing to do with Reddit. That was Citadel robbing Melvin Capital. Sickest thing I have ever seen. Citadel now owns Melvin Capital's book and AUM.

 

Citadel blew a hole in Melvin Capital $2.75 Billion wide.

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3 minutes ago, nuckin_futz said:

Nothing to do with Reddit. That was Citadel robbing Melvin Capital. Sickest thing I have ever seen. Citadel now owns Melvin Capital's book and AUM.

 

Citadel blew a hole in Melvin Capital $2.75 Billion wide.

I don't know all of the details, but I'm sure having a bunch of short bets run against them was a catalyst to some degree.

 

It's just funny to see how the ongoing pump of Gamestop played a part in said catalyst. 

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Did Melvin Capital just get a bailout?

Mon 25 Jan 2021 20:07:38 GMT

 

The fund was one of the GameStop shorts

Bloomberg reports that Citadel will invest $2 billion in Melvin Capital and Point72 took another $750m stake.
 
The $12.5 fund was in the news on Friday due to a 15% year-to-date loss but the headline was that one of their bets was a GameStop short. Some rumours began to circulate that they were in trouble but I dismissed them out of hand because GME was a $4B stock, compared to a $12.5B fund.
 
But with shorts your losses are potentially unlimited and a report now says the fund is down 30% year-to-date. The 30% number roughly corresponds with the size of the bailout so it looks to me like they are trying to prevent a liquidation of positions.
 
But with this news, there is definitely some smoke here. The statement is all sunshine and roses but Citadel and Point72 could be offering some bridge financing so they don't have to cover their shorts.
 
The report says they're "non-controlling revenue shares" and I'm not sure how that would work.
 
Or if I were to put my tinfoil hat on, it could be Citadel -- and its $35 billion AUD -- stepping into the battle with GME buyers.
 
If it's just a bailout for Melvin; this might only embolden further the GME buyers. Where there's smoke, there's fire.
 
***************
 
Melvin's filings indicate they were short a ton of the big rippers like BBBY and IRBT etc. Melvin Capital must have really pissed someone off. They bankrupted him AND took his firm.
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9 minutes ago, nuckin_futz said:

Nothing to do with Reddit. That was Citadel robbing Melvin Capital. Sickest thing I have ever seen. Citadel now owns Melvin Capital's book and AUM.

 

Citadel blew a hole in Melvin Capital $2.75 Billion wide.

Speaking of Citadel, Ken Griffin is such a turd.

He donated almost $55m to prevent change to flat tax rate in Illinois.

 

Sure, janitor making 25k per year should pay the same tax rate like Ken who made 1.5 billion in 2019.

Not to mention he supported those kooks in Georgia, Loeffler and Perdue.

 

 

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2 minutes ago, I.Am.Ironman said:

How about that price manipulation today.. 28 - 18 in a matter of minutes.. closed at 25

Many stocks took a HUGE dip this morning, but not quite as drastic as what we saw with CCIV. The news on the possible delay hit CCIV and then the a large chunk of the market tanked as well at the same time. I wasn't quick enough to jump on some of the sales though unfortunately.  

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4 minutes ago, I.Am.Ironman said:

How about that price manipulation today.. 28 - 18 in a matter of minutes.. closed at 25

I almost shat myself as Questrade got locked up around the same time and I couldn't get in. Thankfully I was holding either way and she came back.

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10 minutes ago, HomeBrew said:

Many stocks took a HUGE dip this morning, but not quite as drastic as what we saw with CCIV. The news on the possible delay hit CCIV and then the a large chunk of the market tanked as well at the same time. I wasn't quick enough to jump on some of the sales though unfortunately.  

I read that it was apparently off of some article written by a Pakastani 20 year old with like 9 twitter followers or something? Pretty funny.

Though I admit I only saw it pointed out by someones tweet and didn't really investigate further.

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58 minutes ago, I.Am.Ironman said:

I read that it was apparently off of some article written by a Pakastani 20 year old with like 9 twitter followers or something? Pretty funny.

Though I admit I only saw it pointed out by someones tweet and didn't really investigate further.

This is correct. Some random guy tweeted that the merger could be delayed as the Saudi's want to build a Lucid manufacturing plant in the Middle East. Same thing happened last week when that CNBC guy tweeted that the merger was "far from done". People just teetering on the ledge when the info is about as useful as a poopy flavored lollipop. I'm happy I held strong, but I wish I had the cahonas to drop more in on the dip lol. Not quite there yet...

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28 minutes ago, Sp3nny said:

This is correct. Some random guy tweeted that the merger could be delayed as the Saudi's want to build a Lucid manufacturing plant in the Middle East. Same thing happened last week when that CNBC guy tweeted that the merger was "far from done". People just teetering on the ledge when the info is about as useful as a poopy flavored lollipop. I'm happy I held strong, but I wish I had the cahonas to drop more in on the dip lol. Not quite there yet...

It was difficult to do... I tried but Questrade was having a fit lol. 

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This is a loooong article but eye-opening (maybe in a bad way, maybe a hilarious way, maybe both). I've pasted the intro below, but basically, part of why GME really took off was a group of Redditors that, although already long on GME, noticed that Melvin Capital was shorting the stock. As a metaphorical (but perhaps more effective) march on Wall Street, Redditors (apparently an actual noun) banded together to buy more and more of GME. Melvin Capital's entire portfolio for the first 3 weeks of January is down 15%. 

 

The shorters at Citron said that GME would fall to $20... and also shorted PLTR...that further enraged Redditors and users were encouraged to buy more. 

 

... TLDR: This article gave me great insight into how I will never actually understand the market.

 

 

https://www.bloomberg.com/news/articles/2021-01-25/how-wallstreetbets-pushed-gamestop-shares-to-the-moon 

 

How WallStreetBets Pushed GameStop Shares to the Moon

 

Quote

 


Short sellers have been called a lot of things. Bloodsuckers. Parasites. Other words not fit to print. Now in the vortex engulfing GameStop Corp., they have a new name: the establishment.

 

 

It’s a role cast for them with relish by their chat-room usurpers, the tens of thousands of average Joe day-traders whose fervor for a left-for-dead retailer has become a self-fulfilling prophecy in its 245% rally this year. GameStop has become a money geyser for the options-obsessed crowd that gathers in Reddit’s WallStreetBets forum. For those wagering on a decline, it’s been a catastrophe.

 
Give credit where it’s due. In their frenzy, WSB’s cocky hordes have managed to turn the tables in a game short sellers invented, spinning gold from the complacency of others. Before this year, GameStop was a cash register for bearish traders, who borrowed and sold more shares than the company issued. Hedge funds had been winning so long that they overlooked the tinderbox they were creating should sentiment turn.
 

Now it has, violently. GameStop, which isn’t expected to turn a profit before 2023, has seen its market value triple to $4.5 billion in three weeks, burning the skeptics whose any attempt to cover is likely to further propel its ascent.

 A notable victim of the shift has been Citron Research’s Andrew Left, once Wall Street’s most celebrated iconoclast for his role hounding Bill Ackman out of another battleground stock, Valeant Pharmaceuticals, five years ago. Today, Left finds himself first among the hunted, his decision to stop publicly bashing GameStop helping drive it up as much as 78% on Friday.

 

Poorbaby GIFs - Get the best GIF on GIPHY

Edited by Down by the River
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1 hour ago, Down by the River said:

This is a loooong article but eye-opening (maybe in a bad way, maybe a hilarious way, maybe both). I've pasted the intro below, but basically, part of why GME really took off was a group of Redditors that, although already long on GME, noticed that Melvin Capital was shorting the stock. As a metaphorical (but perhaps more effective) march on Wall Street, Redditors (apparently an actual noun) banded together to buy more and more of GME. Melvin Capital's entire portfolio for the first 3 weeks of January is down 15%. 

 

The shorters at Citron said that GME would fall to $20... and also shorted PLTR...that further enraged Redditors and users were encouraged to buy more. 

 

... TLDR: This article gave me great insight into how I will never actually understand the market.

 

 

https://www.bloomberg.com/news/articles/2021-01-25/how-wallstreetbets-pushed-gamestop-shares-to-the-moon 

 

How WallStreetBets Pushed GameStop Shares to the Moon

 

I love it. A big F U to institutional money. I'll watch in happiness from the sidelines 

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