Wow- It ain’t over until it’s over-

My thought is that some people will benefit but most will take a hit-

I guess the pump can go on for few days but eventually it will fizzle-

Just like last time, those who get in at the top will easily get whacked with a 50% crash-

So please please beware- I already know people who got in too late and paid a price-

The rewards/risk ratio is not there- Of course, if you want to just gamble $100 sure why not but any trading size too large that you will get stressed should be avoided.

Looks like the WallStreetBet is not dead and rolling- More forums and subgroups will form-

Regulators will not be able to regulate investing forums- Why? Because it is hard to attribute price manipulation. The court will toss the case. Also, even if the court accepts the regulator’s position, it is impossible to police the internet.

Shorting will be more challenging and we will see more pops from now on-

I guess it is good for individual investors who only do buy-and-hold and see one of their stocks skyrocket-

But it is going to be bad as more people just flog for short squeezes and pumps. The market function will break and there won’t be much price discovery.

Yes, price discovery has been broken since 2008 with the liquidity pump. But it will be even more broke with pumpings-

As an individual investor, I will just stick to stocks that people that are not interested and enjoy the buy-and-hold and some swing trading.

I am already enjoying my HL, AG, and EPM positions- If the crowd rushes in, I will sell because well…it is money-

And then move on to other stocks-

2021 is definitely interesting and it may be more interesting than 2020-

Let’s see how crazy it gets when the inevitable crash comes either in April or within a year-

As always do your due diligence and manage your risk.

Thank You Jesus for another blessed day. Let us always be thankful and focus on the riches of the heaven Amen-

Thank You Jesus for a blessed day. Let us always be thankful and give You all the glory Amen-

Rejoice at all times. Pray without ceasing. Give thanks in every circumstance, for this is God’s will for you in Christ Jesus.

1 Thessalonians 5: 16-18

If you enjoy the content, you can support the blog through clicking the referral links that I use in my life: Acorns, Robinhood, American Express, dropbox, evernote, and Scribd.

In time, there will be no more new fools and the stock collapses- Taking down whoever held those stocks-

So yeah, don’t ride the wave because it might take you down literally-

However, what Robinhood and other brokerages did to save the hedge funds is bad. I mean real bad.

Robinhood and other brokerages limited the buying of Game Stops (GME) and other stocks that were on a super short squeeze to save their best clients (e.g. hedge funds).

So much for democratizing finance- Yup, now you know who Robinhood cares about- Of course, I knew this all along- But now they have to admit it in PUBLIC.

The limitation of certain trades is a real affront and assault to the average investor. Wow really? So much for freedom and leveling the playing field for everyone except hedge funds.

Robinhood has already been sued and now AOC and Pelosi may jump on Robinhood as well. Democrats are known to be vicious and given their lack of popularity, they are extremely happy to sacrifice the brokerages for more votes.

This is going to get ugly. Robinhood and other brokerages will likely to lose the lawsuit. The Democrats will go on a crusade type investigation. Of course, the hedge funds will be safe because they donate to Democrats.

But the brokerages will be in some pain. Robinhood will be the one that gets it. Because other more traditional brokerages had been lobbying for years so they will find some wiggle room. Not Robinhood.

The worst is not even over…Expect lot of people to switch to other brokerages, I am sure a brokerage that did not restrict access will use this opportunity to say that they are true bastion of financial democracy.

Robinhood is screwed. And that is because they betrayed their core customers or what it says it stands for.

The only way they may appease their customers if they give some shares to their users when they go public (IPO). But right now even that won’t calm down the anger. I am sure there is some forum already coordinating which brokerages they will use to punish those that limited trade on GME.

For me, I don’t follow the crowd because usually they will trample over you. A stampede will kill you. I have been long gold and silver miners and REITs so I will just hold on to my long positions. I will continue to swing trade.

And I will try to find some undervalued stocks that can create value for me and the world…very hard though.

I want something like Simulations Plus (SLP). Helping the world through drug simulation and great market performance. But even SLP is overvalued…so can’t get in there…

If anyone has good meaningful picks, please let me know-

I will also update it on the blog if I find a new good pick.

Thank You Jesus for a blessed day. Let us always be thankful and give You all the glory Amen-

Rejoice at all times. Pray without ceasing. Give thanks in every circumstance, for this is God’s will for you in Christ Jesus.

1 Thessalonians 5: 16-18

If you enjoy the content, you can support the blog through clicking the referral links that I use in my life: Acorns, Robinhood, American Express, dropbox, evernote, and Scribd.

or trying to show that it won’t be normal or easy either-

So what is going on-

First, we have a super short-squeeze. Institutional investors are getting burned by the swarm of individual investors’ gambling their money on destroyed stocks-

It is rarely the case that a flood individual investors can overrun institutional investors who are more sophisticated and have more money-

But welcome to 2021- And I won’t be surprised if this will keep happening-

Most shorted stocks will go to the stratosphere, destroying funds, before it explodes and every investors get hurt.

I won’t be surprised if I see individual investors doing more crazy things-

There will be blood for sure.

I would not buy the most shorted stocks because eventually reality will kick in and destruction will be complete.

Remember Hertz, yeah, that didn’t end so well…

Game Stop will not end so well either-

Second, the market is way too aggressive-

There is low level of option hedging, low shorting but high margins–

If this is not the peak then we are definitely close to it-

Yesterday, I bought a bunch miners that got destroyed for no good reason and today, I sold them and made good profit-

I did not expect such violent move today but when the mass is angry and swinging anything goes-

I am super heavy cash right now 40%+

I am hoping gold and silver miners popping with the mass pushing First Majestic Silver (AG) up-

But I will remain cautious- I will put more money in once the gold price and gold miners move sort of in sync-

Right now it is pure madness- Some gold stocks didn’t even move much and of course gold didn’t move each other- So it’s just the mass coming and pumping.

You can make good money if you catch the right wave or you can get smacked by it as well-

Way too dangerous- I am thankful that I am an individual investor with lot of cash on the sidelines-

Short hedge funds should be in a world of pain and long hedge funds also should be hurting because fundamentals are nowhere to find.

Even the quant funds should not be immune to the tsunami of individual investors. Quant trading doesn’t work when unexpected irrational behavior comes along…yup…indeed. Don’t be surprised if quant funds report negative performance.

Trend following funds should be relatively Ok but they have good risk management as well so I would expect that they are not riding the small investor wave because they know all to well, where it would end up.

Yeah very crazy markets- And when markets are insane better to stay out-

The only issue is that there isn’t much anywhere to go literally. Bonds are expensive. Money is losing value every day because of inflation…where else can we put the money except the stock market?!

But now even the equity market has gone haywire….tough times-

For now, I will hold on to my cash and swing trade a bit-

I thought 2008 and 2020 were quite crazy and extreme but 2021 is telling me that I haven’t seen anything yet-

Praying for America and the world. God bless us all!

Thank You Jesus for a blessed day- Let us always be thankful and give You all the glory Amen!

Rejoice at all times. Pray without ceasing. Give thanks in every circumstance, for this is God’s will for you in Christ Jesus.

1 Thessalonians 5: 16-18

If you enjoy the content, you can support the blog through clicking the referral links that I use in my life: Acorns, Robinhood, American Express, dropbox, evernote, and Scribd.

Looks like 2021 is saying you thought 2020 was crazy?!

You will see-

By now, everyone has heard how Game Stop (GME) got into a super short squeeze and burned a bunch of short hedge funds.

All orchestrated by small investors through reddit and other online forums-

Wow- this is unprecedented. The day when small investors burn the hedge funds-

Usually, it’s the other way around but wow-

This is only possible because of zero commissions, stimulus money, and people staying at home and trading more.

Those who got in early made good money- BUT!

In the end, this won’t end well. At the end of the day, reality wins.

There will be a day when the last fool cannot sell to a new fool.

Then financial reality and bad business become real and the stock collapses.

I am not sure how long GME will be pumped by the short squeeze but don’t enter now because it can just drop like a rock.

If you are in GME, good for you, cash in now and you will be quite happy

Please don’t follow the herd, you may seem to be safe but mindless following without rigorous analysis will separate you and your money quite quickly.

I won’t be surprised if more short squeeze plays are done by coordinated individual investors- And yes money can be made. I won’t be surprised if some hedge funds jump in on the trade-

But at the end of the day, reality will kick in and bad company stock will drop and whoever is holding will suffer…a lot.

Interestingly, today AG had it’s own herd rush in and jumped 30%+ I sold some of my AG because it was 30%+ return. Still I kept most of position because silver miners are still undervalued- So investing for the long run-

Hope the markets come back to normal somehow- With all the money printing, hedge fund manipulation, and now even herd manipulation…it will take some time but in the end, the markets will restore its efficiency.

Thank You Jesus for a blessed day. Let us always be awake and discerning and share Your love Amen-

Rejoice at all times. Pray without ceasing. Give thanks in every circumstance, for this is God’s will for you in Christ Jesus.

1 Thessalonians 5: 16-18

If you enjoy the content, you can support the blog through clicking the referral links that I use in my life: Acorns, Robinhood, American Express, dropbox, evernote, and Scribd.