Submitted by B3stAuD1t0rofA11tiME t3_1282owv in wallstreetbets
This started early in March as capital started to flow from MM funds back into stocks.
The first wave was the rich money coming in.
They made a killing this month.
The second wave was smart retail this week trying to catch up but will still print gains.
The third wave is next week when the average investor kicks in for modest gains.
The fourth wave is when the shorts sell at a loss and buy the new bull market to break even at the end of 2023.
The fifth wave is when the shorts hold until their puts expire and you lose it all plus your car, house and wife.
Those then get divided up between the 1st and 3rd waves at auction. If there are no bidders the 4th wave will buy and then we play again.
That’s the stock market game.
Dothemath2 t1_jeh1i6k wrote
Or, mm and hedgies and smart money already in, will slowly exit as retail dumb money buys the rip.
Market will plateau as macd peaks until buyers run out of funds and hedgies dump it all in an elevator drop as retailers who bought at the top panic sell or tight stop losses get triggered, because people buying after a rip can have pretty tight stop losses.
Bears sitting in puts that expire 2 or 3 months out could be ok?