$GameStop (GME.US)$ sea of red what's happening ☠️☠️ rate cu...
$GameStop (GME.US)$ sea of red what's happening ☠️☠️ rate cut coming no???
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
104923170 : The hedges want to buy shares at discount .
10baggerbamm : you have to understand that margin calls are going to be wiping people out and typically when someone has a margin call they sell the wrong stock. you have to sell what's creating the call not something that is not so why I say this GameStop is held up pretty well all things considered I mean it did go from 27 to below 22 but relative to where it started this year it's held up well and now you're going to have people liquidating everything and anything in their account to cover margin calls so let's suppose they owned Intel for example on margin or Amazon or any of the other tech companies it's a total fucking train wreck disaster so there's four liquidations and when you sell you have to sell $330% of a stock compared to bring it in cash for the same amount of the call so I think that's why a lot of companies are getting slammed at this point. and 8:30 is a big economic number the market's already indicated down with 400 we could be down a thousand... if unemployment rate comes in at 4.2 4.3 this market's going to get fucking decimated.
jorncena96 OP 10baggerbamm : what started all this drop? War in Middle East? if that's the case should we start shorting everything?
( sorry still new investor )
10baggerbamm jorncena96 OP : started the drop was Biden Sunday two weeks ago saying that he's going to impose limitations on technology companies for what they can sell to China so that they don't have anything that's state of the art and that created an initial sell-off and technology chip stocks foundries pretty much all tech across the board and then coincidentally Wednesday of that same week Trump made a statement and he made a statement on the same day that Taiwan semiconductor announced earnings and their earnings were actually very good but his statement was if Taiwan wants protection from China they'll pay the United States and between those two comments that's what has created this "Tech wreck of 24" and then you combine the fact that any company that comes out with earnings even if they're excellent apples were very good they're negative this morning everybody's cashing out and this is how you get a collapse.
.
10baggerbamm 10baggerbamm : Amazon all of these expert bobbleheads on TV that loved it it could go down 40 more points because so far everything I'm seeing is they're taking all the tech stocks back to January's prices January the beginning of 24 and every time we've had a tech company Miss earnings and the gaps down and the following days and weeks it puts new lows in extends those losses. and then you compound people that are on margin there's four liquidations then you add the fact that chairman Powell is a Keynesian from an economic standpoint and he believes he can control the economy expansion and contraction through interest rates it's never worked and people are coming to the realization that he's going to send the us into a recession because CEOs of companies are coming out saying the consumers not spending the consumers tapped credit card companies are saying consumers are defaulting Auto Company loans consumers are defaulting so Powell is using lagging economic indicators he's three to four months behind the curve. and that's why people are extremely concerned right now that's why you're seeing the Russell collapse all the people that bid the Russell up saying that it was going to have a 40% return between now and the end of the year the Russell 2000 companies 40% lose money most are heavily in debt at high interest rates 12 to 14% on borrowed money and they need low rates to refinance his debt well a quarter point cut doesn't do shit I've said it a hundred times so far you need 150 to 200 basis points for them to refinance that puts us minimum July next year which means their earnings are going to be a disappointment so now the Russell is selling off because the Russell needs a strong economy for small caps to grow and if the economy goes into recession small caps do poor so the whole premise is flawed so every every sector right now if it's consumer driven Domino's missed McDonald's missed Chipotle warned consumers not spending so every sector is getting marked down.
jorncena96 OP 10baggerbamm : sounds like heading into recession
thank you for taking the time to explain i learn something today 
10baggerbamm jorncena96 OP : well there's the true definition of a recession which anyone who ever had an economics course would agree to which is two consecutive quarters of negative GDP negative gross domestic product and q1 Q2 of 2021 during the vitaministration we had negative GDP so technically Biden had a recession however that old Billy goat Janet yellen decides to change the definition of a recession saying well it's not just GDP you need to have higher rates of unemployment in order to have a recession so this was done in an effort that Biden would not show a recession during his presidency but now you have this definition change because that's what the Democrats do they move the goal lines change the words the meaning to fit their needs and now you need higher unemployment rate well how do you have higher unemployment when the country is reopening up after being shut down from covid the answer is you cannot have higher unemployment because everybody is scampering to get back to work so that was done intentionally but right now we have unemployment going higher and they're blaming ai ai has nothing to do with this companies don't need people any longer because of efficiency of operation because their businesses are contracting or any combination thereof so today 8:30 you have an appointment coming out they're expecting 4.1% if it's higher this market's going to get absolutely slammed because Powell missed his opportunity to cut rates yesterday
jorncena96 OP 10baggerbamm : shit
. I'm long on a couple companies now. lets hope for the best/worst
jorncena96 OP 10baggerbamm : After you explanation it seems like the heads of the country are purposefully trying to bring the country into recession. who benefits the most in a recession??
10baggerbamm jorncena96 OP : that's a very good question.. utilities healthcare and consumer Staples typically are the sectors that win in a recession. if you're referring to who as an individual's I don't have an answer because somebody would have to be hedged in the market with options deep out of the money so that when reports of a recession are indicated they profit and there's no way to know who that is
View more comments...