Whale Tales And Riverboat Gamblers: The Story Of 2020’s Summer Tech Bonanza

Whale Tales And Riverboat Gamblers: The Story Of 2020’s Summer Tech Bonanza

"Think back to last week when the bulls were telling us that the market was pricing in improved economic prospects", former institutional equity derivatives trader Kevin Muir said Saturday. "Turns out, it was nothing of the sort". Ahead of a long weekend stateside, US equities unceremoniously snapped a five-week win streak, thanks mostly to a nauseating Thursday swoon during which tech favorites were summarily executed in the back alley, mob style. By mid-morning Friday, tech was in correction
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9 thoughts on “Whale Tales And Riverboat Gamblers: The Story Of 2020’s Summer Tech Bonanza

    1. I read WSB semi-regularly – both because sometimes it’s very funny, and also to keep my finger on the pulse of the Robinhood crowd. And it also reminds me of the kind of the “sick,” politically incorrect humor that used to be prevalent on trading floors back in the ’80s and ’90s. And I do wonder – though it’s obvious that most of the posters are youngins, with a few thousand (or hundred) in their accounts, I also get the feeling that there are some VERY serious traders who read it and even post occasionally – both for the same reasons I do, and perhaps for manipulation purposes as well.

      1. I don’t know what “WSB” is, but please be advised: I do not want outbound links to unreliable websites in the comments, so please don’t post any.

        Links in comments are only permitted to reputable sites (e.g., FT, BBG, NYT, Reuters, etc.)

          1. Yes, it’s a phenomenon – a trading subreddit with over 1,000,000 members. Wallowing in its self-proclaimed idiocy and degenerate gambling can be entertaining (and occasionally informative, if you want to know what the Robinhooders are up to.)

        1. Heisenberg, I was referring to the first comment on your post rather than the post itself.

          I am curious though, now that we know these markets are being pumped is this the end of the road? There is no real demand for these assets at this price… just a gambling bank trying to make up for their losses and retail mania chasing 10% weekly gains.

          What catalysts are there to support this?

  1. If you thought back to January 2018 when the 10 day correlation of vol to index went positive, obviously unusual, you might have wondered that this same phenomenon was a red flag? It was! Here is my other question. Is it possible that the reason the market puked is because the “Whale” unload a mass of delta at the top? That would be too funny as dealers short gamma re-balanced, the Whale said sure, have as much as you want! BOOM!

  2. Wondering how far this unwinds. One analyst view in another H article on Softbank was that the call-buying would go on… after all, what are the dealers going to do? Stop hedging? But I’ve seen enough educated (and un-educated) fear this weekend that makes me think momentum may shift in retail, at least. With a strategy surfaced, with one main player, I can only imagine the number of traders willing to bet against that player will ramp as the smell of blood grows stronger. And betting against the “combined might” of robinhood? Yep, I’ll take that one. I imagine betting against the primary Softbank positions, if not all of tech, will prove sensible for a while.

    And I wonder if Masayoshi Son has just accidentally truncated the trump turn-up. If stocks start tanking, that kicks out about the only “positive” leg trump had under his campaign stool (He still has “negative” legs like fear and hatred). trump will have to start coming up with some bigger riots to use in his campaign…

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