The rise and fall of GameStop's stock in 2021 became a landmark event in financial history, captured in the recent film "Dumb Money." This saga, fueled by unprecedented social media buzz and retail investor sentiment, culminated in a historic short squeeze and raised critical questions about market access and regulatory oversight.
The Spark: A Sentiment-Driven Squeeze
GameStop, facing declining brick-and-mortar sales, became a target for short sellers who saw its business model as outdated. However, a surge of online optimism, primarily on platforms like Reddit and Twitter, ignited a buying frenzy among retail investors. This sentiment-driven buying pressure triggered a dramatic short squeeze, propelling the stock price to dizzying heights in January 2021.
The Fallout: Buy Buttons and Direct Registration
While the price eventually corrected, the social media fervor persisted. Concerns about trading restrictions implemented by certain brokers during the squeeze further fueled the fire. This led retail investors to embrace Direct Registration of Shares (DRS), a process that removes shares from the clutches of brokers and places them directly with the company. The goal: to limit the availability of shares for shorting and potentially trigger another squeeze.
DRS: A Unique Market Phenomenon
With over 74 million shares DRS'd as of the last earnings report, GameStop represents a unique case in market history. No other non-penny stock has witnessed such a large-scale withdrawal of shares from the open market by retail investors. This unprecedented scenario has created a volatile market dynamic with the potential for significant price movements.
Technical Analysis: Signs of a Potential Breakout
GameStop's price chart exhibits classic characteristics of a stock primed for a short squeeze breakout. Price consolidation since the 2021 squeeze, falling volume and volatility, and rising short interest are all potential indicators of pent-up pressure.
The Socioeconomic and Elliott Wave Perspective
Analyzing market movements through a socioeconomic and Elliott Wave lens, we recognize the crucial role of collective sentiment and mood in driving stock prices. GameStop's price trajectory aligns with a clear 5-wave Elliott Wave pattern, suggesting a potential return to all-time highs and beyond.
Potential for Government Intervention
The exponential counterparty risks associated with a potential GameStop squeeze raise concerns about systemic market instability. Government intervention, in some form, cannot be ruled out to mitigate the potential fallout of unrecoverable margin calls on significant market players.
The Sequel Awaits: A Story Unfolding
As time unfolds, the GameStop saga continues to evolve, captivating both financial experts and retail investors alike. Whether a sequel to the "Dumb Money" film materializes remains to be seen, but one thing is certain: the story of GameStop is far from over, with its potential consequences for the market attracting keen attention worldwide
The Spark: A Sentiment-Driven Squeeze
GameStop, facing declining brick-and-mortar sales, became a target for short sellers who saw its business model as outdated. However, a surge of online optimism, primarily on platforms like Reddit and Twitter, ignited a buying frenzy among retail investors. This sentiment-driven buying pressure triggered a dramatic short squeeze, propelling the stock price to dizzying heights in January 2021.
The Fallout: Buy Buttons and Direct Registration
While the price eventually corrected, the social media fervor persisted. Concerns about trading restrictions implemented by certain brokers during the squeeze further fueled the fire. This led retail investors to embrace Direct Registration of Shares (DRS), a process that removes shares from the clutches of brokers and places them directly with the company. The goal: to limit the availability of shares for shorting and potentially trigger another squeeze.
DRS: A Unique Market Phenomenon
With over 74 million shares DRS'd as of the last earnings report, GameStop represents a unique case in market history. No other non-penny stock has witnessed such a large-scale withdrawal of shares from the open market by retail investors. This unprecedented scenario has created a volatile market dynamic with the potential for significant price movements.
Technical Analysis: Signs of a Potential Breakout
GameStop's price chart exhibits classic characteristics of a stock primed for a short squeeze breakout. Price consolidation since the 2021 squeeze, falling volume and volatility, and rising short interest are all potential indicators of pent-up pressure.
The Socioeconomic and Elliott Wave Perspective
Analyzing market movements through a socioeconomic and Elliott Wave lens, we recognize the crucial role of collective sentiment and mood in driving stock prices. GameStop's price trajectory aligns with a clear 5-wave Elliott Wave pattern, suggesting a potential return to all-time highs and beyond.
Potential for Government Intervention
The exponential counterparty risks associated with a potential GameStop squeeze raise concerns about systemic market instability. Government intervention, in some form, cannot be ruled out to mitigate the potential fallout of unrecoverable margin calls on significant market players.
The Sequel Awaits: A Story Unfolding
As time unfolds, the GameStop saga continues to evolve, captivating both financial experts and retail investors alike. Whether a sequel to the "Dumb Money" film materializes remains to be seen, but one thing is certain: the story of GameStop is far from over, with its potential consequences for the market attracting keen attention worldwide
Yorum:
We will let the chart speak for itself
Yorum:
Price is at the ideal trigger level for a possible short squeeze
Targets identified
Lets see what happens
Hope Kenny G. is ready (shout out to the Superstonkers)
Targets identified
Lets see what happens
Hope Kenny G. is ready (shout out to the Superstonkers)
Yorum:
Quick potential trade to earn 10%
Not financial advice
Not financial advice
Yorum:
Target Reached.
Expecting a pullback and then another move higher..let see how things progress
Expecting a pullback and then another move higher..let see how things progress
Yorum:
Should see GME make another high..lets see
Yorum:
Ok looking for a pullback. lets see
Yorum:
Shes got legsssss (in my ZZ Top voice)!!!
GME has major legs right now and is definitely using them.
I think its safe to say that its officially squeezing as we predicted
How high this goes- who knows
Expecting a huge gap down on Monday and then from there let the shenanigans begin
Putting a couple of targets on the chart but the best thing to do really is watch key levels (e.g. previous highs), pivots and volume
GME has major legs right now and is definitely using them.
I think its safe to say that its officially squeezing as we predicted
How high this goes- who knows
Expecting a huge gap down on Monday and then from there let the shenanigans begin
Putting a couple of targets on the chart but the best thing to do really is watch key levels (e.g. previous highs), pivots and volume
Yorum:
Ok got the gap down we were looking for..now we are watching for price to make new highs
Yorum:
Still looking higher.
Price appears to want to test the next support but selling volume is fading so thinking price heads higher by EOD...lets see
Price appears to want to test the next support but selling volume is fading so thinking price heads higher by EOD...lets see
Yorum:
Appears we are very close to bottoming.
Next expected target as of now...we are not psychics btw
This is about probabilities and momentum..watch for new highs and new lows and react accordingly
Next expected target as of now...we are not psychics btw
This is about probabilities and momentum..watch for new highs and new lows and react accordingly
Yorum:
Momentum picking up
Yorum:
As we said...lets see
Yorum:
Ok nailed it again. Next target and support identified. Lets see how this plays out
Yorum:
Tracking price like a hawk
Yorum:
Annnddd..we nailed it again to end the day..next support and targets in scope..
Lets see how this progresses
Lets see how this progresses
Yorum:
Ok price hit our support region..if it holds we are heading higher
Yorum:
Price touched previous support..this region should hold and we should head higher
Lets see
Lets see
Yorum:
Ok a move higher should be happening soon..
Yorum:
We are still looking higher.
FYI- a sustained brake of support levels is what would make us look lower..stay tuned
FYI- a sustained brake of support levels is what would make us look lower..stay tuned
Yorum:
price action is definitely corrective in nature since the run up...
Thinking we may tracing out a triangle and if this is correct expect a sizeable runup and then a break back down before we continue higher...
Lets see
Thinking we may tracing out a triangle and if this is correct expect a sizeable runup and then a break back down before we continue higher...
Lets see
Yorum:
As expected so far...
Yorum:
As expected...just watching support levels for now
Yorum:
Moving as expected.
Still looking higher
Still looking higher
Yorum:
Price hit support..still looking higher
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Testing previous support
This level should hold..lets see
This level should hold..lets see
Yorum:
We really need price to breakout over 17.19
If not there is potentially for another move lower (white zigzag line) before we continue higher...
Lets see
If not there is potentially for another move lower (white zigzag line) before we continue higher...
Lets see
Yorum:
This could break either way..
We still need to get about 17.19 - 17.39 area
We still need to get about 17.19 - 17.39 area
Yorum:
We really need to get over that 17.19 - 17.39 region
Until then we are looking down before we start looking up again
Until then we are looking down before we start looking up again
Yorum:
Near term targets
Still need to break over 17.39
Still need to break over 17.39
Yorum:
Lets see if we can push over 17.39
Yorum:
Zooming out a bit..lets see
Yorum:
If GME is going to squeeze then now would be an ideal time
See our other post on SPX and XLF for details but the broader market is in a perilous position
GME shorts are going to have some tough decisions to make coming up as soon as tomorrow (early next week if SPX/XLF price consolidates)
Chart shows the levels that we think will have explosive price movements
See our other post on SPX and XLF for details but the broader market is in a perilous position
GME shorts are going to have some tough decisions to make coming up as soon as tomorrow (early next week if SPX/XLF price consolidates)
Chart shows the levels that we think will have explosive price movements
Yorum:
Nothings changed- yet
As with any stock we need to make higher highs for the push to continue
As with any stock we need to make higher highs for the push to continue
Yorum:
We said on 05/09 that GME Shorts would have some tough decisions to make come early this week...well here we are
Price during the pre-market session is directly within the target we called out last week...
Expecting to open higher and then head lower before resuming the trip to greater price levels..
Obviously if this does squeeze we will not be posting as much because we have to manage our positions
Good luck to everyone!
Price during the pre-market session is directly within the target we called out last week...
Expecting to open higher and then head lower before resuming the trip to greater price levels..
Obviously if this does squeeze we will not be posting as much because we have to manage our positions
Good luck to everyone!
Yorum:
Well price went right to where we thought
We havent seen a real pullback yet which i think we will still see..
Thinking price fills that gap and then heads higher...
Lets see!
We havent seen a real pullback yet which i think we will still see..
Thinking price fills that gap and then heads higher...
Lets see!
Yorum:
If we can push thru the yellow box we should be off and running again
Yorum:
Zooming out as I think this view is helpful
Yorum:
The typical daily lunch time price consolidation we are seeing is a good thing.
Better than price breaking down lower
Anticipate price will start to get some legs again after 1:30pm est
Better than price breaking down lower
Anticipate price will start to get some legs again after 1:30pm est
Yorum:
Ok here we go....
Lets see
Lets see
Yorum:
As expected...
Rest of the week should be fun lol
Rest of the week should be fun lol
Yorum:
Lots of fun in the pre-market lol
Watch out using market orders (buy or sell) in this environment- the next available price might be further away than you think.
Chart shows key levels we are watching..pay close attention volume!
Watch out using market orders (buy or sell) in this environment- the next available price might be further away than you think.
Chart shows key levels we are watching..pay close attention volume!
Yorum:
And..Here..We..Go
Yorum:
Oh how we love trading halts..
If we can hold this level then we should move higher
If we can hold this level then we should move higher
Yorum:
Although we hate them pullbacks are healthy and frankly needed
As usual just watching support and resistance
As usual just watching support and resistance
Yorum:
The $70ish area is what we are watching next with a move to $90-$100 shortly after
Lets see!
Lets see!
Yorum:
Having fun yet?
Pre-market tomorrow will tell us a lot about how tomorrow is going to go.
But overall we are expecting FIREWORKS... with a side of HALTS
Pre-market tomorrow will tell us a lot about how tomorrow is going to go.
But overall we are expecting FIREWORKS... with a side of HALTS
Yorum:
Morning!
Expect to see the boatload of shares that became available to borrow put to use early this morning
The cost-to-borrow rate (sheesh!) tells the story on the problem shorts have right now
Chart above is still valid
As usual we are just watching for breaks of support and resistance
Good luck!
Expect to see the boatload of shares that became available to borrow put to use early this morning
The cost-to-borrow rate (sheesh!) tells the story on the problem shorts have right now
Chart above is still valid
As usual we are just watching for breaks of support and resistance
Good luck!
Yorum:
If price breaks down further then looking at the next support
Yorum:
Specific Target
Yorum:
Ok should head higher from here..
Lets see...
Lets see...
Yorum:
As expected..lets see if we can grow some legs and begin moving
Yorum:
Patience...you have been waiting since Jan 2021...do what it takes to be rewarded for it...
Price should move fairly quickly thru the yellow box..we just need to break that level
Price should move fairly quickly thru the yellow box..we just need to break that level
Yorum:
Ok get ready...
Expecting some good movement (until they halt it) from here on out
Expecting some good movement (until they halt it) from here on out
Yorum:
Progressing nicely
Yorum:
Still looking much higher but thinking the 44 level will be our next resistance area
Yorum:
Levels should hold up here..
Still targeting the 44 level next
Lets see!
Still targeting the 44 level next
Lets see!
Yorum:
Nothings changed with above
With the broader market teetering (lets see how many get burned by this blowoff move up smh) we should see some major volatility throughout the end of the week as Shorts juggle GME and whatever happens in the market..
Exciting times!
With the broader market teetering (lets see how many get burned by this blowoff move up smh) we should see some major volatility throughout the end of the week as Shorts juggle GME and whatever happens in the market..
Exciting times!
Yorum:
Morning!
Lets see where we open today.
You know the strategy- watch for breaks of highs and lows , support / resistance and volume
Patience is the key here as always
Lets see where we open today.
You know the strategy- watch for breaks of highs and lows , support / resistance and volume
Patience is the key here as always
Yorum:
Not seeing an indication this level wont hold
Still looking higher
Still looking higher
Yorum:
One more drop lower and then we should start the move higher
lets see
lets see
Yorum:
I dont want it too but i still think we see one more low down to the support box before this takes off
Yorum:
Our patience will be soon rewarded
little lower into the support box and we should begin a trek higher
Lets see
little lower into the support box and we should begin a trek higher
Lets see
Yorum:
Market dumping which is contributing to this move lower
But as usual just watching the support areas
Still looking higher
But as usual just watching the support areas
Still looking higher
Yorum:
Should move higher from here
IMHO the $30 calls that are expiring tomorrow is why price is at these levels
They are trying to keep the price as close to that strike price as possible lol.
The problem with stock manipulation though is that you cant out manipulate sentiment
Their only hope is hope is their tactics destroy sentiment..something tells me they are under estimating the level of sentiment within GME stock holders
IMHO the $30 calls that are expiring tomorrow is why price is at these levels
They are trying to keep the price as close to that strike price as possible lol.
The problem with stock manipulation though is that you cant out manipulate sentiment
Their only hope is hope is their tactics destroy sentiment..something tells me they are under estimating the level of sentiment within GME stock holders
Yorum:
Ok this is what we were waiting for...
Now lets see if we can get some follow through
Now lets see if we can get some follow through
Yorum:
Once we get over 31.22 things should start moving again
Yorum:
The market falling is weighing GME down...
Notice the white trend line...price should head towards it
Lets see
Notice the white trend line...price should head towards it
Lets see
Yorum:
Like we said..market dumping is weighing
Lets see if we can hold the support below
Lets see if we can hold the support below
Yorum:
Here is the reality:
This is 100% being manipulated to stay below the $30 Calls that are expiring tomorrow
Trades are being diverted off exchange to relieve buying pressure.
If you look at volume with a Volume Delta indicator there are an excessive amount of candles on lower time frames that show NO BUY VOLUME..do you really believe that on stock with this type of volume?
Nothing about this price structure says that this move up is done
The reason we keep saying that we are looking higher is because the structure AND VOLUME tells us to look higher
That blatant manipulation has a cap on price pressure up now...but it wont and cant last..WHY- because you cant out manipulate sentiment!
You can only hope your manipulation kills sentiment...and they cant
Now as you see we have Wave targets on the chart.
And before you roll your eyes at Elliott Wave, do understand that it is EXACTLY what we are using to call these targets
We are calling it now:
Price will reach Wave 5 by Thursday..maybe Friday depending on the structure tomorrow
This is 100% being manipulated to stay below the $30 Calls that are expiring tomorrow
Trades are being diverted off exchange to relieve buying pressure.
If you look at volume with a Volume Delta indicator there are an excessive amount of candles on lower time frames that show NO BUY VOLUME..do you really believe that on stock with this type of volume?
Nothing about this price structure says that this move up is done
The reason we keep saying that we are looking higher is because the structure AND VOLUME tells us to look higher
That blatant manipulation has a cap on price pressure up now...but it wont and cant last..WHY- because you cant out manipulate sentiment!
You can only hope your manipulation kills sentiment...and they cant
Now as you see we have Wave targets on the chart.
And before you roll your eyes at Elliott Wave, do understand that it is EXACTLY what we are using to call these targets
We are calling it now:
Price will reach Wave 5 by Thursday..maybe Friday depending on the structure tomorrow
Yorum:
Ok this sucks but looking at the options chain $20 Calls are going to be a major problem for Shorts as well...
Pretty sure there will try to push it down to that level.
What sucks is the $20 level is technically where price structure is pointing us
That would put us making it to wave 5 between Wed and Thursday..NO PROMISES because this is so manipulated but from a big picture Elliott Wave perspective this price structure is typical
Typical in the sense that price is adhering to Elliott Wave guidelines and bouncing between the levels and targets that we expect
This is why keep saying they CANT OUT MANIPULATE SENTIMENT
Shorts can ONLY win if they destroy the sentiment around the stock..
STAY PATIENT AND STAY POSITIVE
Ok this sucks but looking at the options chain $20 Calls are going to be a major problem for Shorts as well...
Pretty sure there will try to push it down to that level.
What sucks is the $20 level is technically where price structure is pointing us
That would put us making it to wave 5 between Wed and Thursday..NO PROMISES because this is so manipulated but from a big picture Elliott Wave perspective this price structure is typical
Typical in the sense that price is adhering to Elliott Wave guidelines and bouncing between the levels and targets that we expect
This is why keep saying they CANT OUT MANIPULATE SENTIMENT
Shorts can ONLY win if they destroy the sentiment around the stock..
STAY PATIENT AND STAY POSITIVE
