https://www.cnbc.com/video/2021/01/27/melvin-capital-sells-out-of-gamestop.html ====== Melvin Capital closed out its short position in GameStop on Tuesday afternoon after taking a huge loss, manager of the fund Gabe Plotkin told CNBC’s Andrew Ross Sorkin. ====== Also sold his hedgehog he was rubbing for good luck, unaware of what “hedge” in “hedge fund” stands for.
In premarket today it reached a market cap of 25B, which is 2.5x the previous all-time high market cap back when it was profitable and growing instead of on the verge of becoming Radioshack. This is not just the new dotcom bubble, because although index PEs are as high as they were at the top of the dotcom bubble, stocks are still cheap relative to bonds. It's the everything bubble. It will end when the fed is no longer able to pump the real market cap of USD due to speculative attacks from bitcoin.
So does IBKR, i see this <100 EOD, but risky to short anyway... I may try to jump on short train when down momentum picks up. Small size, wide stop.
Hate saying this. But why would they do that. They know the stock is being played. Get more capital and short short short. The money they could make by averaging in at higher levels would get them every cent back when gamestop comes plummeting down to double digits
Long short fundamental traders won't cut until the pain is too extreme. Their thesis is very much intact so in a normal situation they would be adding instead of cutting. Sometimes the strategy doesn't workout.