The Market Thread

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Mar 11, 2006
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This market noob is confused... Biden is in, KXL is cancelled but all of the renewable energy stocks I follow are dropping... What gives? lol. They were all going through the roof last week and now they've done a 180.
I am confused as well.
As someone who has actively invested heavily and followed the market for many years .....I can honestly say I have no idea anymore how the market is going to move on a day-to-day basis. It used to be moderately easy to be fairly accurate at understanding daily moves, but I know I cannot anymore.

Right now we are in a HUGE seller's market in the US. What that means is money is cheap, but valuations for companies, especially US companies, are very high. They are high because foreign money is coming into the US for safety and investment and that drives up valuations. That is not a bad thing, or especially new, but it is one of the biggest seller's markers we have seen.

You add that to the fact of the unknowns of COVID, unemployment, divisive congress, economy sluggish, and small companies riding the coattails of enormous companies in their sector ---- it is hard to estimate movement.

I remain bullish on the market (I haven't sold a stock in 18 years), but for new investors looking for long-term growth -- unless someone knows a company very well, I would shy away from individual stocks and go with traditional mutual funds with low cost (think tracking funds), or ETFs.
 
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Oct 30, 2007
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This market noob is confused... Biden is in, KXL is cancelled but all of the renewable energy stocks I follow are dropping... What gives? lol. They were all going through the roof last week and now they've done a 180.
The renewable energy stocks you follow have spiked several hundred percent over the past few months. Movement like this is typically driven by a high level of retail speculation. Stocks with a high level of institutional ownership tend to move rationally. Stocks with a high level of retail ownership tend to move irrationally.
 

okstate987

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Oct 17, 2009
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This just doesn't make sense to me AT ALL... lol. I don't even know how Gamestop is even still in business with how many people have moved toward digital copies of everything...
Its the new consoles. They are the main US distributor of them from what I understand.
 
Oct 7, 2008
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This just doesn't make sense to me AT ALL... lol. I don't even know how Gamestop is even still in business with how many people have moved toward digital copies of everything...
A number of things are converging causing it to explode: it was the most shorted stock on the market at 120% short interest, every console cycle it shoots to the $60 range, and Ryan Cohen and two other former Chewy execs are now on the board and are determined to make it the Amazon of gaming. Their digital sales were up 300% last quarter, too.
 

oks10

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Sep 9, 2007
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This just doesn't make sense to me AT ALL... lol. I don't even know how Gamestop is even still in business with how many people have moved toward digital copies of everything...
A number of things are converging causing it to explode: it was the most shorted stock on the market at 120% short interest, every console cycle it shoots to the $60 range, and Ryan Cohen and two other former Chewy execs are now on the board and are determined to make it the Amazon of gaming. Their digital sales were up 300% last quarter, too.
That GameStop...

Sent from my Pixel 2 XL using Tapatalk
 

oks10

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Sep 9, 2007
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GME is being pumped up by Wallstreetbets on Reddit. There are a lot of retail gamblers pushing it much higher than it should be.
Which is why I resisted the urge to play... lol. I'm all about jumping on those smaller stocks before they increase but this one just didn't seem right to me. The other ones I've jumped on I can see actually being more of a long term increase. GameStop though?... That one has GOT to be off and I don't want to have any money at play when that gets corrected. To be fair, I don't know what GameStops business model is. I'm just basing it on my experience of that business being a complete rip off when people bought physical games. I don't know how they're planning on countering everyone going digital.
 
Oct 7, 2008
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That GameStop...

Sent from my Pixel 2 XL using Tapatalk
Did something happen with GME today I didn't notice ;)

I can't believe people are still buying at these prices, but it's pretty clear at this point the retail traders of Reddit are on a warpath to stick it to the man for once. I just have a small position and it's house money now so just along for the ride.
 
Oct 7, 2008
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GME already hit $100 just now. Why???

Is the whole market a huge speculation bubble right now?
It's less speculation and more like a high stakes game of chicken. Some major hedge funds are massively short on Gamestop and they're deep in the red. Redditors figured this out and started buying shares in an attempt to squeeze them out of their position and create a short squeeze a la Volkswagon 2008. We're basically watching the capitalism version of David v Goliath play out right before our eyes.
 

Boomer.....

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Feb 15, 2007
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GME already hit $100 just now. Why???

Is the whole market a huge speculation bubble right now?
SMH

Etsy shares jump 9% after Elon Musk tweets he ‘kinda loves’ the e-commerce stock

Shares of Etsy are popping on Tuesday after Tesla chief Elon Musk sent a simple tweet about the e-commerce company.

Ety’s stock rose 9% in premarket trading following Musk’s tweet that said “I kinda love Etsy.”

The e-commerce company wasn’t moving at all in the premarket prior to Musk’s early morning call out. It’s now set to be the biggest gainer in the S&P 500 when markets open.

 
Oct 30, 2007
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SMH

Etsy shares jump 9% after Elon Musk tweets he ‘kinda loves’ the e-commerce stock

Shares of Etsy are popping on Tuesday after Tesla chief Elon Musk sent a simple tweet about the e-commerce company.

Ety’s stock rose 9% in premarket trading following Musk’s tweet that said “I kinda love Etsy.”

The e-commerce company wasn’t moving at all in the premarket prior to Musk’s early morning call out. It’s now set to be the biggest gainer in the S&P 500 when markets open.

According to Citidel, retail traders made up approximately 10% of trading volume in 2019. In 2020 that figure jumped to 25% due to brokers going commission free and people staying home due to COVID. Retail traders are ignoring fundamentals and flocking to names they hear about on social media. Elon Musk has a cult following on social media. That's why Tesla's stock price has gone parabolic and made Musk the richest man in the world. Now people are jumping at anything he mentions in a tweet.

It's hard to imagine this ending well, but who knows. We're in uncharted territory. I'm just going to sit back and enjoy the show. :popcorn: