What has gotten into $GME?For the record I have no idea what's happening inside that Reddit thread but this is due for a correction.
Cautious short though, because they might even bump this up to the 261.8% level
So we watch~
Gmestock
AMC -this is the next GME this weekAMC released incredible earnings! and the stock si being played by short-sellers with a short interest of almost 39M. WSB with the retail investors army is going to go big on this stock today and its already up 50% pre-market! we estimate that if this stock will get 15% traction of what GME got in the last few days, AMC will reach the second level of resistance at 15$. We are bullish on the stock regardless to the short interest and we are taking it high today !!
The point of control on the volume is on 6$.
Volume on the stock in average 3m: 53M
current volume: Apx 160M
trade safe ! Be safe
GME (A Classic Pump And Dump)View on GameStop Corporation GME (26 Jan 2021)
In 1900s, when a shoe shine boy gives a stock tip, it is time to sell.
In 2020s, when a forumer gives a stock tip, it is time to sell.
All I see is the classic PUMP and DUMP scheme that we are seeing all over.
So, what is the buzz about?
Now tons of excited and uninformed traders are trapped.
I do not think it will not go back about $110~$120 region.
DYODD, all the best and read the disclaimer too.
Feel Free to "Follow", press "LIKE" "Comment".
Thank You!
Legal Risk Disclosure:
Trading foreign exchange or CFD on margin carries a high level of risk, and may not be suitable for all investors.
The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite.
The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.
You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor.
DISCLAIMER:
Any opinions, news, research, analyses, prices or other information discussed in this presentation or linked to from this presentation are provided as general market commentary and do not constitute investment advice.
Sonicr Mastery Team does not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Should I Buy GME Stock Right Now?I’m Markus Heitkoetter and I’ve been an active trader for over 20 years.
I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails.
They start trading and realize it doesn’t work this way.
The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically.
Real money…real trades.
Let’s talk about GameStop GME because the stock’s gone absolutely crazy.
I mean, yesterday, January 25th, it was up 144% before swinging into negative territory. Then it reversed again and closed up more than 18%.
And today, it’s up another 22% to trade at $93.50.
One month ago, it was trading around $20!
So, today, I want to look at exactly what’s happening with GME, and let you know if it looks like a good time to buy the stock.
What is Happening with GME?
GME made its first big move in mid-January after adding Ryan Cohen to its board.
This guy is the co-founder and former CEO of Chewy CHWY — the online pet supplies store — so he knows a lot about retail.
The stock jumped from $20 to above $40 when that news hit, and this caught a lot of short-sellers off-guard.
In fact, according to one CNBC article I read, GME is the most heavily shorted U.S. stock. The article states,
“GameStop has been a popular short target on Wall Street. In fact, more than 138% of its float shares had been borrowed and sold short, the single most shorted name in the U.S. stock market.”
What’s a Short Squeeze?
For those that don’t know, short interest is when a trader bets against the stock, meaning they want it to go lower.
To do this, they’ll borrow shares from their broker at one price.
If the stock price falls, they can buy the shares back at a lower price to repay their broker and keep the difference as profit.
But if the stock rallies, short sellers will have to buy back the shares at a higher price to limit losses.
For stocks that are heavily shorted, this can create a sort of ripple effect:
Because how do you close a “short trade”? Well, you SOLD the stock earlier so now you have to BUY it back.
So when more shorts start covering, i.e. BUYING, the stock climbs higher and higher.
This is the short squeeze.
And in GME’s situation, as the stock rallied on good fundamental news, shorts started to cover.
Then the Reddit crowd got involved.
There’s a forum on Reddit called “WallStreetBets”, and their purpose is to,
“make money and being amused while doing it.”
Their words, not mine.
As GME was rallying, online traders on Reddit began posting about the stock and buying it to manipulate the shorts.
And as they bought the stock, the price soared, forcing more shorts to cover their positions, and again:
This means that more people are BUYING.
It’s not surprising there are a lot of traders upset about this manipulation.
Famous short-seller Citron Research is one of them and said it would no longer comment on GME because of the “angry mob” on Reddit.
Is GME a Buy or a Sell?
Now, you could make an argument for GME stock to keep going higher.
There are probably some shorts still hanging on. And fundamentally, the company did report solid holiday same-store sales and digital sales growth a few weeks back.
But in reality, it’s dangerous to trade GME right now.
For starters, look how overbought this stock is.
And a lot of times, when these stocks fall, they fall fast.
Remember Eastman Kodak KODK last summer when it went from $2 to $60 in two days.
And then back down to $6 a month later.
And implied volatility is all over the place.
This means options premiums are crazy high right now for options buyers.
But it’s not a good time to sell options, either, because it’s hard to pinpoint levels of support or resistance.
So, yes, you could have made a lot of money trying to trade GME stock, but you could’ve lost a lot of money, too.
And whenever I see a parabolic move as we’ve seen in GME , I leave it alone.
The risk is simply not worth it.
Because at some point, the Reddit traders might lose interest in this stock.
So they would just sell it and move on to the next stock, and that could make the stock crash.
After all, there are 2.3MM people in this group!
More Stocks to Watch
Before we go, I just want to check out some more of these “short squeeze” stocks that have been volatile this week.
The first is Palantir PLTR , which ran from $26 to almost $40 in two days.
Today, the stock is down 3% at $35.12.
Another is BlackBerry BB .
BB stock ran from $7.50 in mid-January to above $20 yesterday — its highest level since 2011.
Today, the stock is up 3.6% at $18.60.
And here’s Bed Bath & Beyond BBBY , which was trading around $18 earlier this month, but hit a three-year high near $48 yesterday. Today, BBBY is up 0.1% at $30.68.
Finally, there’s AMC AMC .
It was trading below $2 at the start of the month and hit a high of $5.19 earlier today.
While I’m not going to be trading these stocks because of the risk involved, I’ll certainly be keeping my eye on them.
GameStop (GME) doesn’t want to stop ! where is the next target?So the stock went PARABOLIC in the last weeks – starting with full ignition on the 13th of January.
Stock needed to correct down which shows the motive wave is healthy and it is less likely to tumble down as we got a correction almost to the 50% line, so let's break it into targets :
1. Finish retracement at 31.50$ -the lowest we want to see the stock goes, below that means we broke to the 38 line – the red square in the chart. IF we get to the 38% line that means the motive wave is NOT an impulse wave ( strongest wave) and that the stock price can fall even further.
2. After accumulation has accord between 31.5$ to 35$, the stock needs to continue to the third stage of the motive wave and go up above the previous highest high breaking the 43$ price target.
There we will see some correction happening and accumulation again – if it’s a healthy trend, and we will aim for the next target.
3. This target is a bit presumptuous but if our last target gets hit we are looking at big gains on Gamestop – the target is above 50 towards the 52$ mark.
If the stock reaches this target we believe this will be a great exit point, as the price will need to correct a minimum of 30% down and we do not want to be there for that correction.
Please keep in mind we analyze the market according to Eliot wave theory along with market cycle on something we call ‘Market Cycle Based Analysis’ which can be a bit aggressive at times but in this bullish market, we believe this analysis is more valid than ever!
Be safe and trade safe!
AMC back to $4+AMC is sitting at strong support here near 1.80-2.20 range. Every time we have seen AMC this low, we have had epic bounces which resulted in 100-200% moves up. I think it is a great risk-reward opportunity down here. GME blew up recently, this would be another great short squeeze.
$GME Requested Breakdown and Analysis! 1/4/21! Happy New year! Requested Breakdown on $GME going into the first week of January!
RIP $GME Earnings Call was Disappointing. Video breakdown on $GME after earnings. Earnings call was terrible. Cup and handle is about to pour out...
$GME Can we beat? Will the Cup and Handle play out!Shout out to Shawn in my DC group! Sorry! Video breakdown on $GME going into earnings with a 25% implied moved
