Fsmex +.16

On a day when Equities dropped -2%, did you have any Mutual funds that were UP? Bond funds held their own (flat).
TMSRX +.03
ARBIX +.01
HMEAX +.04
ETFs: IVOL +.08

Even a (few) at MFO owned GameStop & probably didn't know it.
https://www.investors.com/etfs-and-funds/sectors/gme-stock-gamestop-investors-instantly-make-16-billion-gamestop-stock-squeeze/?src=A00220
Stay Safe & a good weekend to All , Derf

A few links related to Reg SHO, Shorting, and naked shorting.
What Is Regulation SHO?

Regulation SHO is a set of rules from the Securities and Exchange Commission (SEC) implemented in 2005 that governs short sale practices. Regulation SHO established "locate" and "close-out" requirements aimed at curtailing naked short selling and other practices. Naked shorting takes place when investors sell short shares that they do not possess and have not confirmed their ability to possess

SEC Key Pints of Reg SHO:
https://sec.gov/investor/pubs/regsho.htm
Naked Short Selling:

“Naked” short selling is not necessarily a violation of the federal securities laws or the Commission’s rules. Indeed, in certain circumstances, “naked” short selling contributes to market liquidity. For example, broker-dealers that make a market in a security[4] generally stand ready to buy and sell the security on a regular and continuous basis at a publicly quoted price, even when there are no other buyers or sellers. Thus, market makers must sell a security to a buyer even when there are temporary shortages of that security available in the market. This may occur, for example, if there is a sudden surge in buying interest in that security, or if few investors are selling the security at that time. Because it may take a market maker considerable time to purchase or arrange to borrow the security, a market maker engaged in bona fide market making, particularly in a fast-moving market, may need to sell the security short without having arranged to borrow shares. This is especially true for market makers in thinly traded, illiquid stocks as there may be few shares available to purchase or borrow at a given time.

Is SEC Effective in Regulating Naked Shorts?
part-6-illegal-naked-shorting-the-secs-regulation-sho-is-intended-to-prevent-illegal-naked-shorting-but-is-ineffective?
Patrick Bryne's Deep Capture Blog:

In 2005, Patrick began a vigorous campaign against corruption in our capital markets through securities manipulation. His stance quickly caught the attention of Wall Street analysts and reporters and remains a point of high controversy today. The Deep Capture website grew out of this campaign.

https://deepcapture.com/2019/11/the-sec-me-metoo-part-i/
Deep Capture Presentation:

Excellent interview, didn't find it "rambling" at all. Love the quote near the end about Milton Friedman. Clearly, valuations are stretched. Yet I am not convinced that when the bubble bursts, emerging markets or value in general will necessarily do better. Everything is so interconnected in 2021, it's a tough call. His comments on bitcoin are also really interesting, although again I don't 100% agree.

Just maybe Covid-19 has a hand in being short handed employees.
Stay Safe, Derf

A deep dive look inside the no-fee options trading community:

...while millions are now discovering WallStreetBets for the first time, it has been building momentum throughout the pandemic. One can trace its epic rise to a perfect storm of favorable conditions: the exponential growth of the app Robinhood and its no-fee options trading, the extreme volatility Covid-19 brought to the markets, the stimulus checks mailed to millions of Americans, the lack of televised sports for much of the year, and the unwanted free time stuck at home the pandemic has forced on many people.

Inside the Reddit army that's crushing Wall Street

+1 @sfnative

.....And the beat goes on. The parade of miscues, tardiness in updating or just plain screw ups: tonight, at 10:30 p.m. Eastern Time, M* is having issues with my PRSNX, PRWCX and RPSIX not updating. (And more than likely, "with a cast of thousands," unknown to me.)

Rambling interview and that's being charitable. He has been a debby downer on the market since 2019 and prior. . . perhaps preparing for his book release "waiting for the last dance"
Using his words ... "if the Fed continues to be favorable" and the U.S. comes out of the Covid and we're past vaccinations this summer. . . Do you really believe the US stock market is going to implode? With all of the pent up demand? Travel, consumer discretionary / spending?
Appreciate the share of the interview. Interesting to see all sides. I'm just not buying the "impending" crash. I didn't buy it in April 2020 or on 1/27/21 and I'm not buying it today. But I don't have a magic 8 ball either.

Agree with @royal4.
On another note, let's not paint the entire market with a broad brush. The sky is not falling. This is limited in scope and reach. Believe it or not, Elon Musk summed it up nicely in 1 tweet:
u can’t sell houses u don’t own
u can’t sell cars u don’t own
but
u *can* sell stock u don’t own!?
this is bs – shorting is a scam
legal only for vestigial reasons

I think this explains things pretty well:

a normal person explains what’s happening on the stock market: pic.twitter.com/zKKvULCirX

— Avalon Penrose (@avalonpenrose)

January 27, 2021

Too much time at home. But, hey, hedge funds shouldn't get to have all the fun...
Signs of a little spillover impact on ETFs but maybe not mutual funds...

The $189 million Wedbush ETFMG Video Game Tech ETF jumped more than 16.1% Wednesday, pushing it up approximately 25% since the start of the week. The $758 million SPDR S&P Retail ETF soared 12%, powering it to a 21.9% gain for the week-to-date.

https://finance.yahoo.com/news/gamestop-surge-leaves-u-based-060000570.html

https://m.youtube.com/watch?v=RYfmRTyl56w
Why Grantham Says the Next Crash Will Rival 1929, 2000
Very interesting interview from Bloomberg regarding bubble formations/disruptions and potential markwt crashes coming soon

OK, so MSSMX is human, so to speak, after all. Finally DOWN 3.18% in concert with other SCs.
Increased my stake in it today by 50%. One more BUY to go to fill out the position. Seat belts not included.

Interactive Brokers has put AMC, BB, EXPR, GME, and KOSS option trading into liquidation only due to the extraordinary volatility in the markets,” the company tweeted. “In addition, long stock positions will require 100% margin and short stock positions will require 300% margin until further notice.”
Stay Safe, Derf

Howdy folks,
I more curious than concerned. You make a great point in that hedge fund managers and their influence over Washington. Retail investors can't match. Gee, welcome to America. Ever since elections got so expensive and contributions really started to matter, special interests have been swaying congressional action to the detriment of the citizenry. Throw in Citizen's United and we're well and truly screwed. Need transparency within 24 hours on campaign ads and contributions.
As for banging the hedge fund short side players - screw them. Two things that need to change is the ability to sell more shares than exist and transparency.
I've been dealing with this crap for decades in the precious metals markets. There are always more ounces of short interest than there are ounces of the metal -that have ever been minded. Both gold and silver. This is what leads to the divergence between paper bullion prices and street prices. It's call the premium or mark-up. When it expands, you start seeing supply problems. As I write, the US Mint is out of gold for sale. Buying gold right now is a back order situation. Econ 101 says this is the sign of an artificially priced market.
So, I'm curious. This should hurt anyone around here and I must admit it is a bit titillating to watch legalized pirates getting handed their asses.
and so it goes,
peace and wear the damn mask,
rono

https://www.sec.gov/Archives/edgar/data/891079/000119312521020228/d160564d497.htm
497 1 d160564d497.htm HIGHLAND FUNDS II
HIGHLAND FUNDS II
Highland Socially Responsible Equity Fund
Supplement dated January 31, 2021 to the Summary Prospectus, Prospectus and Statement
of Additional Information (“SAI”) each dated January 31, 2021, as supplemented from time to time
This Supplement provides new and additional information beyond that contained in the Summary Prospectuses, Prospectus and Statement of Additional Information and should be read in conjunction with the Summary Prospectuses, Prospectus and Statement of Additional Information.
IMPORTANT NOTICE
The following information supplements and supersedes any information to the contrary contained in the Summary Prospectus, Prospectus and/or Statement of Additional Information of Highland Socially Responsible Equity Fund, a series of Highland Funds II (the “Trust”), each dated and supplemented as noted above.
As previously disclosed, on October 28, 2020, the Board of Trustees (the “Board”) of Highland Funds I (the “HFI”) and Highland Funds II (the “HFII”) unanimously approved an Agreement and Plan of Reorganization (the “Plan”) for the reorganization of Highland Socially Responsible Fund (the “Acquired Fund”) into NexPoint Merger Arbitrage Fund (the “Acquiring Fund,” and together with the Acquired Fund, the “Funds”). Under the Plan, the Acquired Fund would be reorganized into the Acquiring Fund on or around February 26, 2021 (the “Closing Date”). Shareholders of record as of January 8, 2021, will be entitled to vote on the Plan.
At any time prior to the Reorganization, shareholders may redeem shares of the Acquired Fund. Such a redemption would likely result in the recognition of gain or loss by the shareholder for U.S. federal income tax purposes, which would be taxable to a shareholder that holds the shares in a taxable account. Additionally, Acquired Fund shareholders will not incur any sales load or similar transaction charges as part of the Reorganization. Please contact the Adviser at 1-877-665-1287 if you have questions about the Reorganization or your account.
A special meeting of shareholders during which shareholders of the Acquired Fund will be asked to consider and vote on the Plan has been scheduled to be held on February 26, 2021. If shareholders of the Acquired Fund approve the reorganization, the reorganization is expected to take effect on or about February 26, 2021.
Shareholders of record of the Acquired Fund will receive a prospectus/proxy statement that will include important information regarding the Reorganization. Those shareholders should read that prospectus/proxy statement carefully when it is available. The prospectus/proxy statement, and any other documents filed by the Funds with the SEC, may be obtained free of charge at the SEC’s website at www.sec.gov or the Funds’ Web site at www.highlandfunds.com/literature or www.nexpointgroup.com/nexpoint-merger-arbitrage-fund/. For more information regarding the Acquired or Acquiring Fund please call 1-877-665-1287 or visit the Funds’ Web site listed above.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT WITH THE SUMMARY PROSPECTUS, PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION FOR FUTURE REFERENCE.
HFII-HPE-SUPP-0121

Very interesting...goes against the Wall Street idiom, "if the VIX is high, it's time to buy"..."be greedy when others are fearful"...
Of course FD1K appears to have done very well timing the market over the years, not being sarcastic, I've seen some of his posts where he backs up his statements.
Good Luck to All,
Baseball Fan

@FD1000 said:

I have several criteria but the easiest one is the VIX, when...VIX>30 get ready...VIX>35 start selling...VIX>40 rapid selling. The catch of course is not to stay out for longer term. I have been out of the market about 3% of the times in the last 10 years.

This week seems to be one of those moments to watch the VIX.
https://finance.yahoo.com/quote/%5EVIX?p=%5EVIX