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What happens to the markets if the ports close? Seems like another crash should happen similar to the COVID crash
 


This is a potential "gray swan" for NVDA and the stock indices that NVDA has been propping up.
 
Cigarlover said:
I bought some wolf speed last week. WOLF
Also a chip maker but different chips than the AI space. Really energy efficient chips for the EV market. 2 billion in cash and a lot of debt from revamping the manufacturing. Stocks been beaten down pretty good and revenues are projected to double to 1.6 billion by 2026.
I bought last week when I saw it pop. In at 9.03 then pulled way back into the high 7's. This is just a starter position as I accumulate over the next year or so. Huge pop today to well over 9. Also 30% shorts so I think if this gains momentum the short squeeze will be interesting if it occurs.
Unlike these high flyers, their books seem to be in order and plenty of cash on hand to service the debt.
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Looks like the short covering is occurring. Big pop to just under 12 on very heavy volume today. Sadly I never got to add to my position. Up around 30% on what I have though so can't complain.
 
WOLF. Yesterday added to my position. Chart looked like it was forming a bull flag.
Then I log in to see this happening at 5 am. News is 1.5 billion in funding from chips act and another private group. Still should be over 30 million shares short so the action the next couple days could get interesting. Screen Shot 2024-10-15 at 5.20.51 AM.png
 
Yes, this is a giant debt bubble and at least a few of the geniuses (sarc) on Wall St are bound to start to see what is happening.
 
Anyone have a Schwab account? After they took over Ameritrade I started seeing things in the account that didn't make sense. After the close of after-hours there would be small losses of a couple bucks that seemed to right itself the next day but to be honest I never really followed it that much. Just something I started noticing after the switch.
Last night and today I did notice this again on an options trade. So, yesterday I bought 2 options for .30 each. Up 18.00 at the end of the day which was right in line. Options closed at .39 so a .09 cent profit or 18.00 total. After 9 pm last night I logged in and saw that there was an 8 dollar and change loss on the P/L day. Thought it was strange since options don't trade afterhours. Also, the high of the day yesterday was .41

So, this morning the stock is down and of course the options follow but it shows a starting price of .43 and the loss starts from that number. Screen Shot 2024-10-17 at 11.34.14 AM.png
Those 2 numbers are current price and how much the position is down. Total add up to .4314 which means that was the closing price yesterday. Well, it wasn't and it's only a little over an 8 dollar discrepancy but that's not the point. It looks like they are stealing 8 bucks and change from the account by bumping up the higher closing price in the afterhours or something.
Screen Shot 2024-10-17 at 11.38.50 AM.png
This is the chart of the options in question. As you can see yesterday the high was .41 but it closed at .39.

Under current account positions the numbers are correct.
Screen Shot 2024-10-17 at 11.40.41 AM.png
1st number is current value and 2nd is how much it is down for the day. Those numbers do add up to .39 which is correct.
So, what should be showing up as a 52 dollar loss is actually showing up as a 59 and change loss. Again, not a big deal but imagine this occurring with millions of accounts.

Anyone have an explanation for this?
 
Well first of all they didn't really steal any money. They are just intraday numbers that aren't really real. The gain/loss since opening should be accurate. Some brokers are starting to trade things (not real stock) overnight like robbingHOOD. There could also be weird bid/ask problems with options that have wider spreads.

I could see them doing things like this to try and make people feel worse.
 
Had a long conversation with them and just to update, they said that later in the evening the OCC sets the actual price of the options and that price is also reflected in my account value. When I asked where I could find that adjustment, there is no way. So, you have to take a screen shot at the end of the day and then compare it to later in the evening. Sounds a bit wonky to me. Why bother adding the money to my account just to remove it in the morning? I'll be keeping a closer eye on this for sure.

This is the OCC website. I didn't bother trying to read through it all. Not worth my time for 8 bucks. LOL. https://www.theocc.com/company-information/what-is-occ
 
Voodoo said:
Well first of all they didn't really steal any money. They are just intraday numbers that aren't really real. The gain/loss since opening should be accurate. Some brokers are starting to trade things (not real stock) overnight like robbingHOOD. There could also be weird bid/ask problems with options that have wider spreads.

I could see them doing things like this to try and make people feel worse.
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Thats sort of what they said as well and then said it didn't affect my total value. When I said it most definitely did they then said not really because they add that value to the account at night. For now I will trust that is accurate but will definitely verify. :)
 
I mean its all sketchy as hell and the OCC is certainly no friend of retail. The more you dig the worse it gets. They don't really need to set a "clearing" price overnight. It should be where the market closed. I could ask the pros in the Tastytrade as they have pretty good understanding of the market.

We do know that almost all of "our" (not really ours) assets are rehypothecated overnight. If all these revisions are UP (ie you don't see any down at night) that is a RED flag for me. Somehow they are inflating their assets overnight to create more fake capital.
 
Gold is increasingly attractive as other traditional "safe haven" assets face mounting risks, Bank of America strategists said.

The strategists said investors, including central banks, should rotate into the precious metal, which bulls tout as a hedge against inflation and debt debasement resulting from rising government borrowing.

"Gold looks to be the last 'safe haven' asset standing, incentivising traders including central banks to increase exposure," the strategists said in a Wednesday note.

They explained that with US debt expected to keep soaring, Treasury supply faces risks. At the same time, higher interest rate payments as a share of GDP will make gold an attractive asset in the next few years.
...
The analysts reaffirmed their target of $3,000 an ounce for gold by the end of next year, which implies 11.1% upside from levels on Thursday.
...
Central banks around the world have also increased their share of gold as a portion of total reserves. The Bank of America analysts note that gold now makes up 10% of central bank reserves, up from 3% a decade ago.
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markets.businessinsider.com

Gold is the 'last safe haven' as Treasurys face risks from soaring US debt, Bank of America says

Bank of America strategists see 11% upside for gold by the end of next year as the Treasurys are threatened by soaring US debt levels.
markets.businessinsider.com markets.businessinsider.com
 
The miners are participating today as well. Earnings should be very healthy for them this quarter.
 
Goldhedge said:
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While true I don't think the banks are in any trouble. I listened to a podcast earlier that mentioned the banks are keeping like 3.5 trillion on deposit at the fed. The get a guaranteed return with 0 risk. So why lend it and take on risk? 3.5 trillion will cover a lot of deposits. Not everyone will run for the exits anyway. Most people just use plastic which will continue to work just fine unless the lights go out.
 
Goldhedge said:
It's not the banks... how long can this go on...?
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Until the fed decides it doesn't want to monetize anymore debt? Politicians don't talk about it because they don't have a clue how all of it works. Thats why they have meetings with the fed and ask a bunch of question. I think Maxine Waters is head of that committee. My guess is she could barely reconcile a checkbook let alone understand how debt works so the media never asks any questions of the politicians so as to avoid embarrassing them.
Don't forget, politician have also been told the fed can create as much money as they want but can't guarantee the value of it.
At this point the debt and spending is meaningless. There's 0 chance any of it will ever get paid back so it works until it doesn't.
 
"And no one in Washington seems to care."

That's not true. There's a handful of peeps that do care. Rep. Thomas Massie created his own US Debt clock lapel pin that he wears on the floor to bring the issue to the forefront amongst his peers. There's just not enough of them that care to effect action.
 
This article says over 700 million ounces of silver are shorted right now via futures contracts. I haven't looked to confirm that but if true and this continues we could see those limit up days again as the bankers try and cover. On the other hand, bankers hate to lose and may pressure the exchanges to cancel those short contracts like they did with Nickle in London. Or maybe they just didn't pay the longs or something. I forget exactly how they did it but it proved the exchanges don't work.

https://www.msn.com/en-us/money/oth...n-dollar-losses/ar-AA1sxKBZ?ocid=BingNewsVerp
 
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