As stated previously in my last Idea NYSE:GME has been following a clear pattern for nearly 3 weeks now. Making new highs every 4 trading days(H1,H2,H3). Last high was made 2/2 so 4 trading days from that would be this Wednesday (H4). I expect to trade flatish/down Monday and flatish/down early Tuesday and to start going up mid/late Tuesday. I believe we can reach $25 on the next new high and when we do hedging of the option chain will cause a large run up.
We are very strongly inversely correlated with TVC:VIX and as long and it keeps its downtrend I expect gme to continue its uptrend.
I am hoping gme will do something similar to what NASDAQ:UPST did last week. It too was following the same pattern gme was. When it made a new high in the $20 range it exploded upwards to $25. I believe that happened because of the heavy options interest at $20. gme was trading at 25 for 3 months so I'm hoping the options at 25 can rocket it forward. Interestingly even after breaking out upst still appers to be following the same pattern it has been indicating its run might not be over. I will be keeping an eye on it.
While I am hoping gme runs this week I will be happy as long as it maintains its uptrend. I would keep an eye on vix and other "meme stocks" and if they are staying on trend I will remain bullish on gme.
I have noticed that the general pattern for the next leg up is 1. vix goes down hard 2.gme iv goes down hard 3.gme goes up. So if you are thinking of entering in an options position, I would wait for gme iv to crush as a signal to buy.
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Well yesterday sure was fun! Vix looks like it made a top and I hope to see it go down hard and make a new bottom. gme went up hard but if you look at the monthly it's still following the same pattern as before of flat/upside after the drop from highs and before another drop (though this upside was larger than previous ones). I am kind of expecting them to drop gme hard early today (%5-%10). I am still hoping to see iv on gme drop hard one last time. There are a lot of sold calls at 25 keeping the price in check. dropping the price and iv hard early in the day would give them a perfect opportunity to buy back those calls (and anyone hoping to enter an opportunity to buy wink wink) letting gme start ripping later in the day. I still expect the high to be Wednesday but keep in mind that if we go up late Tuesday open higher Wednesday and immediately fall after that then technically the high was still Wednesday so depending on your price target and how much we run exiting eod Tuesday wouldn't be the worst idea. If we don't run today, then I would want to see a new high made early Wednesday. Other "meme" stocks cough bbby cough are still going so I'm still expecting gme to keep going up.
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Well, the drop yesterday was harder and quicker than I thought it would be and the recovery smaller but that's just how it is with gme sometimes lol. Honestly everything I am looking at still looks like gme will make a new high today. Vix looks like it's finally ready to go down after lingering at a top for a while, non-meme stocks and even a few meme stocks like tsla are continuing their uptrend and even hard-hit meme stocks like gme and upst haven't broken their uptrend. I'll be happy as long as gme makes a new high today but honestly its looking more and more like March and May and I still think we get a big run this week. We shall see I guess.
I don't think were running today. Unfortunately heading back down. maybe tomorrow if not buying puts
jdscott1224
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There is the big dip. you think we're still gonna run
J2DP
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@jdscott1224, as this point yeah, I still think so. getting crushed this fast gives us more time to recover today. still keeping an eye on vix don't want to see it go up much higher.
J2DP
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bbby announced it's going to be selling shares or something and I expect it to get nuked tomorrow. Combined with my expectations that gme price will be hit hard gme is prob going to feel super bearish tomorrow. It'll be up to you if you think it's the dip before the rip but remember I was expecting a low of 21.50 before our run up so keep things in perspective. A hard run up can mean a hard run down.