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The question is how many funds are now forced to sell their good asset o raise the money to cover the GME short position. If there're still may funds, then the stock market will face enormous selling pressure.Al_Dente wrote:[Source: Market Insider:]
BlackRock [BLK], the world’s largest investment manager, was likely up $1.2 billion from the frenzy, as the company had owned 9.2 million shares of GME at the end of 2020.
[Source: Fortune Mag:]
Hedge Fund legend Steve Cohen’s Point72 Asset Management has declined 10% to 15% so far this month, while Dan Sundheim’s D1 Capital Partners, one of last year’s top-performing funds, is down about 20%.
Melvin Capital, Gabe Plotkin’s firm, had lost 30% through Friday (as Ken Griffin/Citadel and Steve Cohen rushed to Gabe’s aid).
“Melvin on Monday took an unheard-of cash infusion from its peers, receiving $2 billion from Griffin, his partners and the hedge funds he runs at Citadel, and $750 million from his former boss, Steve Cohen.”
A smaller hedge fund, the $3.5 billion Maplelane Capital, lost about 33% this month through Tuesday in part because of a short position on GameStop, according to investors.
TRIVIA:
Citadel manages roughly $34 billion in assets. As of October 2020 Citadel owner Ken Griffin had an estimated net worth of $15.8 billion.
Steve Cohen, the new owner of the New York Mets, has an estimated $14 billion net worth.
Dave Portnoy, who owned Barstool Sports and was/is an aggressive champion of the “little guy”' had an estimated net worth of
roughly $120 million as of November 2020.
Data on shorts, from Ortex:Cobra wrote:... The question is how many funds are now forced to sell their good asset o raise the money to cover the GME short position. If there're still may funds, then the stock market will force enormous selling pressure.
This is wrong price channel - market closed still above lower bounder of the channel. Still looks like new ATH in next few session as you mentioned earlier before going down under 2000 points on spxCobra wrote:Al Brooks believe the break of the price channel is significant so traders should expect the sell off to continue down to 3600 the next week.
The channel was taken. But anyway, channel is just a rough idea, break or no break I won't read much, the key is follow through.marcueus3 wrote:This is wrong price channel - market closed still above lower bounder of the channel. Still looks like new ATH in next few session as you mentioned earlier before going down under 2000 points on spxCobra wrote:Al Brooks believe the break of the price channel is significant so traders should expect the sell off to continue down to 3600 the next week.
Al_Dente wrote:zerohedge:
[Caveat: recall that zerohedge is famous for their frequent Armageddon posts].
“On Thursday, Robinhood drew on its bank lines and obtained a $1 billion rescue capital investment and has since restricted users from trading stocks and options in dozens of securities. As we noted Friday evening, we believe there are issues "between DTC, clearinghouses and other regulatory entities, Robinhood was found to be in another capital deficiency position [Friday]- even with the billions raised overnight [Thursday] - and it is being forced to deliver."
This likely means that Robinhood is, even th[r]ough the weekend, scrambling to obtain even more capital, although we somehow doubt it will be easy.
It also means that we may have to have another "Lehman Weekend" situation on our hands, only this time it will be a "Robinhood Weekend", and an urgent acquisition from a strategic buyer may be required to prevent the worst-case outcome. We only hope that the billions in funds held in custody for clients have segregated should the company collapse.“
This time zerohedge has company.
Here is a refrain spotted on the internet, particularly from firms trying to recruit Robinhood’s clients:
“So if Robinhood goes under the SEC will freeze all the accounts. The SIPC protects up to $500k in accounts. It takes months to unwind and get your money back. Move your money now. This could become a nightmare.”
And Friday at 2:35pm ET WeBull brokerage announced that trading in GME, AMC and KOSS was no longer restricted while restrictions remain at E*TRADE et.al. This changes daily....
https://stockcharts.com/public/1684859
The numbers are in:Cobra wrote:... Robinhood has chance to go belly up.
Thats how channel properly looks for now, I do not know from when CFD become as important as SPX but it is for now Tommorrow all will be clearCobra wrote:The channel was taken. But anyway, channel is just a rough idea, break or no break I won't read much, the key is follow through.marcueus3 wrote:This is wrong price channel - market closed still above lower bounder of the channel. Still looks like new ATH in next few session as you mentioned earlier before going down under 2000 points on spxCobra wrote:Al Brooks believe the break of the price channel is significant so traders should expect the sell off to continue down to 3600 the next week.