Business & Investment

(Bull) Market February 2021 | Australian Equity Forum

So let’s start with the seasonal chart:

Re. GME Story:

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Flippe Froppe Fry

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Liquidity will be an issue:

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Unfluid stocks (small caps) are always the best target for all kinds of operations.

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So what really happened was that the big fundamentalist (Scion) began to absorb the stock under a small illiquid name. Several other funds participated, followed by some technical traders and icing on the cake, the mob was backed and supported by hedge funds.

Forget the Reddit crowd. No problem.

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And you will lose them. If they really believe in their own coverage, the market will teach them an expensive lesson.

The issue of VaR has already been emphasized. If triggered, this can generate sales from serious players and move the megacap. You don’t have to worry about small caps and micro caps. The problem highlighted is that the market is a complex system linked by leveraged oooodles. Leverage amplifies vol. Volume Yesterday or jumped 50% with twice the leverage of X. Unleveraging means selling a long book or adding it to a short book. In any case, the selling pressure exceeds the buying pressure.

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The “blind angle” will come back, but probably not on Monday. I think we’ll see another 5% to 10% decrease before BTD players step up. Bull isn’t dead, but even the bull market can have a nasty dip.


(Bull) Market February 2021 | Australian Equity Forum (Bull) Market February 2021 | Australian Equity Forum

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