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Shortsqueeze

AMC Chart Analysis, Week of 1/25- 1/29AMC Stock Analysis - Fundamental and Technical Analysis Week of 1/25 - 1/29 Hope this helps some of you understand what happened and why price moved a certain range/direction. *can not predict short-term price due to lack of data on 1/28-1/29 across the channels on real time volume market cap shares outstanding bid/ask limited # of shares purchasable changing and fundamentals such as company's outlook economical outlook future growth rate current revenue debt (significant changes) Ratio of short-term traders (without long-term investment interest in AMC) vs. Long-term traders (with long-term investment interest in AMC) that will determine next week's buy/sell volume and interest.
NYSE:AMC
by OpereSuo
1
$SPCE short runs prices up to $70 to $80 target before Feb. end.We are on a logarithmic growth pattern with $SPCE. Great prospects, rumors of test flights, and incredible meme value. Plus any heavily shorted stock is under attack by retail right now. However, unless this thing picks up mainstream appeal, like $GME levels, it's got to retreat at some point. Therefore I'm into some Jan 2023 calls, but only plan to hold them until the end of Feb, unless the momentum on social media of the stock changes. At that point I think it has to retreat to the logarithmic trend line for a while before it continues growing (ie being acquired by someone large).
NYSE:SPCELong
by americanpegasus
2
Retail Investors HELD THE LINE 1/29/21 Gamma Squeeze GMEWe are making History here! Big Hedge Funds have shorted this company beyond the number of shares even available! When we called them on it they tried every trick in the book and when that failed they threw the book away and shut down the game! They tried to shut down our communications. They tried to discredit us. They tried to spread misinformation. They tried to cause panic selling. When that didnt work they even stopped us from buying publicly traded stock on retail platforms! But not only did we hold for every dip caused by more shady practices we bought the dip. Volume is critically low. They have nowhere to go and mountains of debt that is increasing exponentially! We have won the battle today and now the war has begun! Here is my analysis for GME for the coming week. We have a huge Short Squeeze we are about to enter. Not financial advice. I'm not a professional. Just a regular rocket scientist that likes this stock. I like it A LOT!!!
NYSE:GMELong
by carrering_official
4
Where is Gamestop Going Next?As I have spoke about before this is a blow off top, wave 5, and evening star formation. The price target is $17. Let me define a few things to put it in perspective. 1. Blow off top definition; Blow-off top patterns are common in securities where there is a lot of speculative interest. Prices rise, usually on positive news or on the prospect of good future news, such as future growth or the release of a positive drug trial, for example. As the price rises, more and more people get excited. More people also start to feel they are missing out, and they don't want to miss out anymore, so they buy. The higher the price goes, the number of people lured in to buy increases, and thus the higher the price and volume go. Blow-off top patterns are common in securities where there is a lot of speculative interest. Prices rise, usually on positive news or on the prospect of good future news, such as future growth or the release of a positive drug trial, for example. As the price rises, more and more people get excited. More people also start to feel they are missing out, and they don't want to miss out anymore, so they buy. The higher the price goes, the number of people lured in to buy increases, and thus the higher the price and volume go. 2. Wave five is the final leg in the direction of the dominant trend. The news is almost universally positive and everyone is bullish. Unfortunately, this is when many average investors finally buy in, right before the top. Volume is often lower in wave five than in wave three, and many momentum indicators start to show divergences (prices reach a new high but the indicators do not reach a new peak). At the end of a major bull market, bears may very well be ridiculed. 3. Evening Star; The Evening Star is a bearish, top trend reversal pattern that warns of a potential reversal of an uptrend. It is the opposite of the Morning Star and, like the morning star, consists of three candlesticks, with the middle candlestick being a star. The first candlestick in the evening star must be light in color and must have a relatively large real body. The second candlestick is the star, which is a candlestick with a short real body that does not touch the real body of the preceding candlestick. The gap between the real bodies of the two candlesticks is what makes a doji or a spinning top a star. The star can also form within the upper shadow of the first candlestick. The star is the first indication of weakness as it indicates that the buyers were unable to push the price up to close much higher than the close of the previous period. This weakness is confirmed by the candlestick that follows the star. This candlestick must be a dark candlestick that closes well into the body of the first candlestick. The reliability of the evening star is enhanced if the third candlestick opens below the real body of the star leaving a gap between the real bodies of the star and the third candlestick. This, however, occurs very rarely. Reliability is also enhanced by the extent to which the real body of the third candlestick penetrates the real body of the first candlestick, and if the third candlestick has very little or no lower shadow. Finally, volume should also be considered as the pattern is more reliable if the volume on the first candlestick is lower and the volume on the third candlestick is higher. Sound familiar? If it walks and talks like a duck it's probably a duck. Not shown is multiple similar bubble situations TLRY, SPCE, Bitcoin in 2017, etc. All bubbles burst. My advice is to get out immediately.
NYSE:GMEShort
by adriel.arrasmith
11
Short squeeze mini series # 23What Is a Short Squeeze? A short squeeze occurs when a stock or other asset jumps sharply higher, forcing traders who had bet that its price would fall, to buy it in order to forestall even greater losses. Their scramble to buy only adds to the upward pressure on the stock's price KEY TAKEAWAYS *A short squeeze accelerates a stock's price rise as short-sellers bail out to cut their losses. *Contrarian investors try to anticipate a short squeeze and buy stocks that demonstrate a strong short interest. *Both short-sellers and contrarians are making risky moves. A wise investor has additional reasons for shorting or buying that stock.
I
by samitrading
GME scandal: Some explanations & why trading got halted.Citadel & Point72 bailed out Melvin Capital which was the GME short selling bagholder, but it does not end here. There are other short sellers. And these stocks, not just GME, but others too, became extremely volatile and on giant volume. So first there is the issue of liquidated funds that do not have immediate cash. They hold positions and would have to unwind them to get cash to cover their margin calls. Melvin Capital I read was down 30% and got bailed out, so they still have assets, just not liquid, no immediately available cash. Trust me, if they had a gun to their head they'd have immediately available cash, they'd manage. Second, even after what happened in 2007-2009, financial institutions with systemic risk are not THAT capitalized. It's not new and never gets solved: in 1987 NYSE specialists had to bed big banks to provide them with more cash or the whole world would collapse. And I think bureaucrats do not understand how this all works very well. No one does honestly. But bureaucrats are really clueless and under or overreact. Always. It gets scary for the clearing firms when you have GME making $35 billion volume and going up 400% in 2 days, AMC making $20 billion and gap 300%, higher volumes than Apple and Amazon that are already higher than usual and on 100 times the volatility. Interactive Broker CEO was the most honest in my eyes and in an interview with CNBC said they halted trading to protect their clients, the clearing houses, the market, and themselves. He said if they had not done it the short squeeze would have kept "going and going", so regulators & brokers agreed to stop it all to "stop the losses". Robinhood decided to re-open trading and the CEO pretended he halted trading of the very volatile stocks as routine like "oh didn't notice anything special was going on" 🤡. Webull CEO said in an interview their clearing house told them they could not take trades anymore. I think they use another entity than Robinhood does. Not sure why Robinhood halted buying (and not selling). There's really the need for an investigation here. I can't tell you what happened because we do not know. My 2 cents: Short sellers are still very strong on this stock, I think they might even have added, I don't know if they are friends with the clearing house but either way they (ch) get stuck in this game, and retail investors are understandably angry at getting blocked like this. Brokers don't have billions to my knowledge with which they can cover counterparty risk and they have no contractual obligation to do so and I mean they're not santa claus. My personal opinion is short sellers refusing to liquidate and take the L is the source of all risks and problems (most of it might be options that they can just hold? Not sure how this gets counted in short interest). Maybe already the counterparty clearing firms got wiped clean, but regardless of this if the price skyrockets further and the bagholding shorts that refuse to close while they can end up being liquidated and margin called, it's truly over for the market. Everyone is going bankrupt, WSB crashed the world. The counterparty providers risk is real, but I am not their accountant, I do not know how bad things are, and we don't know what actors (if any) are of good faith. It could be (it probably is) shorties refusing to take the L, putting the whole market at risk. I think they are really worried the price gets to 5000. From the Peterffy (IBKR) interview they really expected this. And it might still happen. Lehman Brothers, James Cordier, Melvin, same story. They get greedy, they refuse to get out, they get rekt. And sometimes they get an unfair bailout, and are so deluded they actually think they got unlucky when they really messed up.
NYSE:GME
by MrRenev
10
FROGS IN BOILING WATER I'm assuming you know where I'm going with this .. Here is a list of 50 top shorted stocks on the market as of today afterhours . 1/28/21 Ticker Company Exchange> ShortIntrest Float Outstd Industry GME GameStop Corp. NYSE 138.08% 51.56M 69.75M Retail (Technology) SPCE Virgin Galactic Holdings Inc NYSE 81.53% 53.65M 195.59M Investment Holding Companies AMC AMC Entertainment Holdings Inc NYSE 68.93% 56.57M 108.90M Motion Pictures BBBY Bed Bath & Beyond Inc. Nasdaq 66.62% 114.36M 126.01M Retail (Specialty Non-Apparel) LGND Ligand Pharmaceuticals Inc. Nasdaq 64.24% 15.43M 16.08M Biotechnology & Drugs FIZZ National Beverage Corp. Nasdaq 62.52% 11.65M 46.65M Non-Alcoholic Beverages FUBO Fubotv Inc NYSE 62.15% 54.47M 67.56M Online Services SPWR SunPower Corporation Nasdaq 53.57% 80.92M 170.16M Semiconductors SKT Tanger Factory Outlet Centers NYSE 49.70% 90.14M 93.47M Real Estate Operations AXDX Accelerate Diagnostics Inc Nasdaq 46.26% 29.75M 57.03M Scientific & Technical Instruments TR Tootsie Roll Industries, Inc. NYSE 45.85% 16.11M 39.34M Food Processing GOGO Gogo Inc Nasdaq 44.59% 40.46M 85.25M Communications Services CLVS Clovis Oncology Inc Nasdaq 42.80% 85.73M 88.20M Biotechnology & Drugs OTRK Ontrak, Inc. Nasdaq 42.24% 7.41M 17.42M Healthcare Facilities GSX GSX Techedu Inc NYSE 41.96% 128.62M 128.69M Personal Services PRTS Carparts.Com Inc Nasdaq 40.19% 37.11M 47.93M Retailers - Auto Vehicles, Parts & Service SRG Seritage Growth Properties NYSE 39.97% 34.27M 38.64M Real Estate Operations SENS Senseonics Holdings Inc AMEX 38.78% 95.35M 245.67M Medical Equipment & Supplies IRBT iRobot Corporation Nasdaq 37.40% 27.43M 28.13M Electronic Equipment & Parts RVP Retractable Technologies, Inc. AMEX 35.59% 12.77M 33.82M Medical Equipment, Supplies & Distribution PGEN Precigen, Inc Nasdaq 35.42% 69.42M 178.60M Biotechnology & Medical Research RKT Rocket Companies Inc NYSE 34.85% 102.38M 100.37M Consumer Lending DDS Dillard's, Inc. NYSE 34.63% 12.83M 18.37M Retail (Department & Discount) PETS Petmed Express Inc Nasdaq 34.36% 19.50M 20.27M Retail (Drugs) INO Inovio Pharmaceuticals Inc Nasdaq 33.80% 166.10M 169.41M Biotechnology & Medical Research SFIX Stitch Fix Inc Nasdaq 33.57% 59.03M 62.90M Online Services SRNE Sorrento Therapeutics Inc Nasdaq 32.42% 227.00M 262.94M Biotechnology & Medical Research WKHS Workhorse Group Inc Nasdaq 31.76% 109.42M 120.53M Auto & Truck Manufacturers RUBY Rubius Therapeutics Inc Nasdaq 31.69% 32.55M 80.92M Biotechnology & Medical Research REV Revlon Inc NYSE 31.65% 6.81M 53.33M Personal & Household Products EBIX Ebix, Inc. Nasdaq 29.62% 25.35M 30.96M Computer Networks MIK Michaels Companies Inc Nasdaq 29.57% 83.36M 147.65M Retail (Specialty Non-Apparel) JWN Nordstrom, Inc. NYSE 28.97% 109.23M 157.68M Retailers - Department Stores SDC SmileDirectClub Inc Nasdaq 28.78% 93.13M 113.55M Medical Equipment, Supplies & Distribution OPK Opko Health Inc. Nasdaq 28.47% 404.72M 670.00M Biotechnology & Drugs LAZR Luminar Technologies Inc Nasdaq 28.09% 34.38M 218.82M Electronic Equipment & Parts DDD 3D Systems Corporation NYSE 27.95% 119.69M 124.14M Computer Peripherals CVM CEL-SCI Corporation AMEX 27.89% 38.09M 39.76M Biotechnology & Medical Research LOVE Lovesac Co Nasdaq 27.51% 10.44M 14.68M Home Furnishings MDGL Madrigal Pharmaceuticals Inc Nasdaq 27.16% 10.10M 15.44M Biotechnology & Medical Research KNDI Kandi Technologies Group Inc Nasdaq 27.02% 57.89M 72.38M Auto & Truck Manufacturers SCVL Shoe Carnival, Inc. Nasdaq 26.71% 8.61M 14.10M Retailers - Apparel & Accessories CAKE Cheesecake Factory Inc Nasdaq 26.60% 42.08M 45.58M Restaurants ICPT Intercept Pharmaceuticals Inc Nasdaq 26.50% 27.66M 32.99M Biotechnology & Medical Research RVLV Revolve Group Inc NYSE 26.38% 25.54M 25.75M Retailers - Department Stores BLNK Blink Charging Co Nasdaq 26.00% 33.62M 35.95M Utilities - Electric CVNA Carvana Co NYSE 25.67% 68.67M 69.43M Retail (Specialty Non-Apparel) LCI Lannett Company, Inc. NYSE 25.65% 31.40M 41.70M Biotechnology & Drugs RXT Rackspace Technology, Inc. Nasdaq 25.45% 34.29M 200.29M IT Services & Consulting APT Alpha Pro Tech, Ltd. AMEX 25.40% 11.53M 13.58M Medical Equipment, Supplies & Distribution Play smart . Thumbs up are appreciated . Cheers see you next time .
NYSE:SPCE
by PTO
167
GME - Squeeeeeeeeze of the Century? What a fantastic time to be an investor! This parabolic run will go down into the history books & consequently the move isn't even over yet... I just wanted to outline the textbook bull breakouts since August. Purely based on price action this was a thing of beauty and was built up for months. The consolidation box was the final failed attempt by Wall Street to leverage their shorts. This event will create a major catalyst into new platforms & *hint: Decentralization. Good luck to all & long live retail!
NYSE:GMELong
by LibraTradesNY
2
CDR Short Squeeze Failure?This is an update to: www.tradingview.com As noted before we lacked upward movement that could end 2nd elliott wave in a statistically popular fibo retracement level. As short squeeze against Mevlin Capital inspired detail investors we have reached a popular level of 61.8%. It seems that memes have lost their momentum for buying stocks like GME or AMC according to what can be seen on the charts I assume the same will happen CDR. Just as writing this possibly S&P500 and NDX stocks are starting to loose upward momentum for the day tomorrow might be a crucial day for CDR. Reaching MA200 cannot come unnoted. New Fundamentals (previous are still in effect): Polish WIG20 index which CDR is part of has reached a significant barrier where bears can return. New Speculation (previous are still in effect): Short squeeze against Melin Capital (still shorting CDR but at significantly lower level) is loosing momentum as panic movements can be observed both on GME and AMC.
GPW:CDRShort
by deejayzajac
7
Zero Commission trading: GME, AMC & others get blocked and crashPrice is crashing on low volume for GME & AMC. TD Ameritrade restricted operations on GME, AMC & other securities Robinhood removed GameStop, AMC, Blackberry, Nokia and others Interactive Brokers has put AMC, BB, EXPR, GME, and KOSS option trading into liquidation Charles Schwab raised the margin requirement to trade GME (blocking small accounts from buying it) Those brokers cover most of the US retail market, and it is possible more have enacted restrictions "Robinhood". "Take from the rich to give to the poor". Here it's rather take from the poor so the rich can crash the price and exit. Melvin Confirms $2.75 Billion Investment from Citadel and Point72 Following Losses, Including GameStop (GME) Short I heard but could not confirm Citadel were short on some of those securities Citadel is Robinhood major client that buys their client order flow So this is how it is: They make money by taking the opposite side of retail, and when they lose they ask their zero-commission pets to stop their clients from buying This is from CNBC: “This is a big problem of the e-brokers’ own making as they are so beholden to their payment for order flow overlords and shows the real fragility of the zero commission business model,” said Timothy Welsh, founder and CEO of wealth management consulting firm Nexus Strategy. And world famous AOC criticized the brokers actions, she is a member of the Financial Services Committee and would support a hearing. A few days ago senator Elizabeth Warren said something had to be done, I believe she meant bail out her billionaire buddies. As you may know there is a divide in the US democrat party, between socialists (incl AOC) and "typical" dems. This will get politicized, and your portfolio returns will depend directly on US politics. Also, if these plays continue to be possible will depend on US congress and NOT on magical indicators. The left in the US (the people around Bernie Sanders) will likely fight in favor of the small guy, republicans and old school democrats will defend "systemic risk" in other words the big funds, libertarians (a few republicans + Tulsi Gabbard I'd say) might defend retail investors. But I really expect the same old dems & republicans to win and stop the infinite free money hack, a lot of people really won't like it, and it adds another brick to the wall of divide+tensions+radicalisation. Billionaires will get bailed out, but since they burned themselves I think they are going to calm down with the shorting and fear mongering. Unless crazy laws that overwhelmingly favor them get voted, at that point this would not even surprise me... For once the little guys won and beat the corrupt insiders, and so they cheated to avoid losing.
NYSE:AMC
by MrRenev
12
Just in: WHO reports EXPR is bullish on account of a BATEXPR round 2. They can shut down the accounts but they cant stop the perfect pattern. It will play out how it will play out. Good luck holders. The Bullish Bat: Bats are five point chart patterns that can point towards either a bullish or bearish breakout.One thing to note is that both bat types can be either reversal or breakout patterns. Look for a bullish bat in a bear trend as an indicator of a possible bullish reversal. For a valid bat, B should retrace between 38% and 50% of the first move from X to A. Here we have it!
ELong
by Verum0
11
Short squeeze mini series #18What Is a Short Squeeze? A short squeeze occurs when a stock or other asset jumps sharply higher, forcing traders who had bet that its price would fall, to buy it in order to forestall even greater losses. Their scramble to buy only adds to the upward pressure on the stock's price KEY TAKEAWAYS *A short squeeze accelerates a stock's price rise as short-sellers bail out to cut their losses. *Contrarian investors try to anticipate a short squeeze and buy stocks that demonstrate a strong short interest. *Both short-sellers and contrarians are making risky moves. A wise investor has additional reasons for shorting or buying that stock. AMEX:APT
AMEX:APT
by samitrading
2
Short squeezes, gamma squeezes, and the GameStop dramaIntroduction Video game retailer GameStop is up nearly 800% in the last two weeks. The story of how this happened makes for both an entertaining soap opera and an educational example of some market-making forces every trader should be aware of: short squeezes and gamma squeezes. Buckle in to learn how reddit vigilantes took on activist short-sellers and caused a massive spike in a struggling retail stock. Act 1: The Citron short The story begins with a brief video released by activist short-seller firm Citron Research in which Citron's Andrew Left announced a short position in the stock. The video wasn't really up to Citron's usual standards. Usually they expose some kind of fraud when they take a short position, but this time the argument was that GameStop was a low-quality company in a doomed brick-and-mortar retail sector and is not going to be able to turn itself around. Here let me pause to define some terms: "Short-sellers" are traders who borrow shares of a stock, sell the borrowed shares at current market price, and then buy the shares back later in order to return them to the lender. If the stock goes down between the sale and the purchase, the short-seller pockets the difference as profit. If the stock goes up, the short-seller takes a loss. "Activist" short-sellers are a special category of short-sellers who do research in order to find poorly managed or fraudulent companies, take a short position on them, and then release their findings to the public in the hope that the release of negative information will drive the stock price down. Act 2: The Wall Street Bets squeeze Activist short-sellers have played a role in exposing nearly every major corporate fraud that's ever been taken down. In my opinion they perform an important market function and offer an important service to investors. But a lot of people hate activist short-sellers. They're often accused of releasing false or misleading information in order to manipulate a stock, and plenty of critics also feel that short-sellers are unpatriotic, pessimistic, and destructive. If you watched The Big Short and hated all the main characters because they were trying to destroy the banks and betting against the American economy, you'd probably also hate Citron Research. That's how the folks on a subreddit called "Wall Street Bets" feel about Citron. Activist short-sellers often get hacked, threatened, and bullied, but usually it's by agents of a fraudulent company they've targeted. (Invisibilia's episode "Trust Fall" documents a recent horrifying case involving the fraudulent mafia-connected German fintech company Wirecard.) The GameStop case is a little different because it was Internet vigilantes, and not corporate agents, who targeted the shorts. Left and other GameStop shorts came under an intense barrage of verbal assaults and cyberattacks from members of the Wall Street Bets subreddit who believe in GameStop's turnaround story. And that's not all the vigilantes did. They also coordinated a campaign to manipulate GameStop's price upward and "squeeze" the shorts out of their trade by buying lots of far out-of-the-money GameStop calls. This campaign has been tremendously successful, as evident from the stock's recent price action. Citron's Andrew Left posted a video on Twitter in which he announced that as a result of the backlash, he has exited his GameStop short trade. Here, again, let me pause to define some terms: The problem with short-selling is that your losses are potentially infinite. If you're short on a stock whose price price increases more than 100%, then you can lose more than 100% on your trade. If you don't have enough cash in your account to cover the loss, then this can trigger what's called a "margin call," where you're forced to buy shares in order to "cover" your short. And if your short position is large enough, there may not be enough shares for sale on the open market for you to quickly exit your trade, so it may take some time for you to cover. This can cause a dramatic increase in stock price, known as a "short squeeze." There's another kind of squeeze called a "gamma squeeze," which occurs when someone buys a lot of far-out-of-the-money call options on a stock. The sellers of far-out-of-the-money call options usually will buy shares of the stock in order to cover themselves in case the options eventually get exercised. That drives up the stock price. Plus, there are a lot of algorithms out there that buy or sell stocks based on what open options contracts imply about the market's expectations for a stock's future price. So buying out-of-the-money call options can also trigger those algorithms to buy, further driving up the price. In the last couple years, retail options traders, especially on the Wall Street Bets subreddit, have realized that they can manipulate stock prices by banding together to buy lots of out-of-the-money calls. This strategy has been successfully used for over a year to drive up the price of Tesla, and now it's being used on GameStop with similar impressive results. Conclusion The biggest moral of the story here may be, don't sell shares short. It's a dangerous environment for short-sellers, with gangs of vigilante longs roaming the social media streets. The GameStop and Tesla stories prove that retail traders, if they band together, have the power to be market makers and to take on institutions. It also proves that markets aren't necessarily efficient or rational. Sometimes they are a battleground for differences of ideology or social class, and the underlying company fundamentals matter not at all. Of course, this likely won't go on forever. Using a gamma squeeze to manipulate a stock price is arguably illegal, so there's a possibility that the SEC will eventually crack down. Gamma squeezes also require the existence of market makers willing to sell far out-of-the-money calls, and it's possible that that willingness will go away. If market makers stopped selling these calls on GameStop or Tesla, the game would quickly be up. And finally, I think we will see companies increasingly position themselves to take advantage of these situations. The ideal move for GameStop executives would be to issue a lot of new shares right now in order to harvest the manipulators' money and raise enough cash to cover the company's future losses. (Tesla has done this a few times in the last year or two.) And, as it turns out, GameStop has an offering ready to go, through a program they put in place on December 8. (Possibly they had advance notice of this coordinated Wall Street Bets program to manipulate the stock.) They only have to pull the trigger, which I assume they will do when they feel the stock has hit its peak. That is likely to trigger a sell-off in the stock, but it could also potentially stabilize the company's finances, stave off bankruptcy, and greatly extend GameStop's life. And that's another reason why fundamentals sometimes don't matter and why it's dangerous to be short on a stock: because to some extent, it's the stock price that drives a company's success rather than the other way around. A higher stock price allows a company to raise more capital, and more capital allows the company to invest in updating its business model and turning things around. Perhaps we will see this run in GameStop's stock price lead to large capital expenditures, a new business nodel, and a total revitalization of the company. Only time will tell.
NYSE:GMEEducation
by ChristopherCarrollSmith
329
Short squeeze mini series # 17What Is a Short Squeeze? A short squeeze occurs when a stock or other asset jumps sharply higher, forcing traders who had bet that its price would fall, to buy it in order to forestall even greater losses. Their scramble to buy only adds to the upward pressure on the stock's price KEY TAKEAWAYS *A short squeeze accelerates a stock's price rise as short-sellers bail out to cut their losses. *Contrarian investors try to anticipate a short squeeze and buy stocks that demonstrate a strong short interest. *Both short-sellers and contrarians are making risky moves. A wise investor has additional reasons for shorting or buying that stock.
A
by samitrading
GameStop $440 in premarket GameStop GME, the video-game retailer that is closing shops because of Covid and became famous now with it's association with the Reddit message board-fueled retail attack on institutional short sellers has just touched $440 in premarket trade. The loss-making retailer was priced at around $19 heading a few weeks ago and $60 last week before storming higher. GameStop has become the poster child for the 2021 stock market and its incredible volatility and speculation. The stock has gained 1,700% in January, causing pain to short-sellers. A trade like none we have seen before. The huge moves in GameStop (GME) stock have been, very clearly, the result of a short squeeze. A squeeze is a phenomenon that can occur after big gains happen in a stock that, in turn, cause mounting losses for short sellers who are forced to cover their positions. Even Investopedia had to rewrite their short squeeze articles. WHAT'S NEXT? People hunting for the next Short-squeezes will be a new hobby to many. Especially young traders, normally those who are currently on Instgram and Telegram groups about cryptos. What I would also expect is the SEC coming out with some new circulars. ps. I heard about this on Youtube but for sure there will be a film about all this in a few years. Title ' The Big Squeeze' 🙈
NYSE:GME
by FX_Professor
5
Timeframe selection is important to trade short squeeze!Timeframe selection is important to trade short squeeze! What happens in a short squeeze, the short-sellers are under pressure because they are under distress trying to cover their short positions. Along with bargain hunters and active traders wanting to make a profit from the short squeeze, all that combined actions pushes the price even higher. Time is money! Short traders try to trade carefully and fast. Short traders know that they have to act quickly otherwise the next higher price will be more expensive to cover their short position. However, short traders have to cover their short positions fast but don't want to cover the stocks too fast because that will move the price even faster and that puts short sellers at a disadvantage. Short sellers become long traders once they completely cover their short shares. Time frame selection is crucial when making a decision to go long or short. When trading a short squeeze, the weekly chart doesn't give the active traders good information. In fact, the weekly chart is useless to active traders because it doesn't provide any information. Active traders wanting to participate in short squeeze should consider looking at the 15-minutes chart or the 1-minute chart to make their decision to go long or to go short. With the weekly chart, it is impossible to decide the entry or exit price. Thank you for reading! Greenfield This is article #3 on how to trade short squeeze. Remember to click "Like" and "Follow!" to see more articles on how to trade short squeeze. Disclosure: Article written by Greenfield. A market idea by Greenfield Analysis LLC for educational material only.
NYSE:GMEEducation
by GreenfieldAnalysis
4
The end of an eraFor years short sellers had their fun. They do fundamental research, short, and then let everyone know. They don't hold back on fear mongering. And this worked for years. But nothing works forever. The US are entering bubble area and money is being thrown at stocks left & right. Massive & highly advertised short positions lead to short squeezes, and it is happening more frequently. It had to backfire eventually. The price of GME rallied after the WSB forums decided to aggressively buy if you didn't know. Laws on market manipulation are not very clear, what WSB did might get considered illegal or it might not. Regulators might try coming up with something against it, or maybe not since they only act when price went down, if price went up (legally or not) they never care. As everything else this won't work forever, regulators or not, I would be surprised it worked more than a few times. I am seeing people say "learn a lesson that you should never short anything", that's a pretty "dumb money" thing to say. What I would get out of this is don't ever get complacent, and avoid something if too many people are doing it/know about it. GME short interest was over 100% and they screamed on roofs they were all in short. Really asking for it... It's always fun to try and catch the market peak and with all the taxi drivers giving people stock tips it might not be very far, but there are a lot of variables, and I do not think it will be obvious (maybe it will). Maybe cautious Wall Street guys will give up and just end up going all in with leverage. I could not tell if the top is months away or years away, maybe it goes back and forth with a China culture war to replace the trade war fluctuations. We might not get a clean top and crash at all, but rather something really choppy and bad, or the price could keep going up like the Venezuela, Argentina, and Zimbabwe stock markets. Crash while going up. A possible good play some might want to consider is to short the more bad companies (that are not crowded, nice and under the radar), and buy the better ones. When the crash comes these shorts would cover losses. Forex has been quite a choppy unpredictable mess for me for the past 3 months, maybe everyone is too busy getting into crypto & stocks? Follow the money. Follow the whale. The casual retail millenial whale. Until they run out of money. I don't think we are at max euphoria yet, but it can't be very far.
NYSE:GME
by MrRenev
9