GME next week - A smooth-brained ape evolves a wrinkle.
As I sat here nibbling on my crayon, I developed an itch I couldn't scratch ... for it was on the inside of my head. It was not like anything that ever happened before, so I wrote it all down for you to read. Please tell me, am I evolving? Or, can I go back to my crayons.
A tale of Apes, a Moonshot, and Hedgef*ckery.
The week started out well. With a quickness of pace akin to swinging from trees, a new breakout event sent apes into a flurry of excitement and pounding their chests. But, alas as often occurs, an evilness descended upon the zoo.
On Wednesday (03/10) hedgebastards attempted to destroy price at lunch (when they know retail peeps are away from their accounts). This is their way. They failed. Yeah, price collapsed and wiped-out stops. But, the diamond handed apes bought the dip, beat them back, and laughed as they ate more bananas.
What the hedgies didn't get were the apes DRIVING the car called Misery. Our car Misery, doesn't have GME brakes (stops) for EXACTLY THIS REASON. After all they tried to achieve what happened? They faceplanted right in the road. Apes kept on keepin' on and drove Misery right over that shiny crown of a speedbump toward recovery - roughly 2/3 of the pain and suffering inflicted. Better yet, price stabilized.
Their efforts also had a side effect: SSR = Short Sale Restrictions. SSRs went into effect IMMEDIATELY and were set to continue for the entire next day. (Their idea was to let the market settle and think things were safe. Then, hammer it again on Friday.)
Oopsie, it seems a big fat whale saw what was going on and, with a soft touch, nudged the price down 10% again. Shucks, SSR extended to EoW. Sucks to be a hedgie restricted to selling shorts at market value, not 100s below.
Now, we're into the weekend. So, what I here you say. Markets are closed you say. What recent newsworthy financial event just occurred? Hmmmm, American Recuse Act? Yeppers. That's $1400 going into non-savvy accounts. And, yeah, they will see $GME adding 70% over a week, $158 to $270 (time of writing). FOMO.
Here's what I see.
(It's my first time but, if I've done this right, this is on my chart.)
02/24 1st Breakout event, open-ended.
03/05 2nd Breakout event, open-ended.
03/10 3rd Breakout event, closed-ended. (both versions)
My read:
Scenario #1
That $1400 is already priced in to the stock. This forms a convergence event (CE#1) this Monday.
The suckers have their money and start flushing it into the stock during early trading on Monday. This means I'll be watching what happens closely for further indications of what to do.
Hedgebastards will want to ensure even late-comers have the opportunity to get that money in during lunchtime. Then, they wipe-out all the protective stops the n00bs placed. (Not being mean, I was one too. It's a perfectly fine mechanism and ABSOLUTELY what THEY should do.) I imagine, around end-of-day (2-3ET), there will be at least one stop run (maybe two).
Scenario #2
That $1400 is NOT already priced into the stock. This forms a convergence event (CE#2) on Wednesday 03/17.
Refer to Scenario #1 for the rest of the story.
A tale of Apes, a Moonshot, and Hedgef*ckery.
The week started out well. With a quickness of pace akin to swinging from trees, a new breakout event sent apes into a flurry of excitement and pounding their chests. But, alas as often occurs, an evilness descended upon the zoo.
On Wednesday (03/10) hedgebastards attempted to destroy price at lunch (when they know retail peeps are away from their accounts). This is their way. They failed. Yeah, price collapsed and wiped-out stops. But, the diamond handed apes bought the dip, beat them back, and laughed as they ate more bananas.
What the hedgies didn't get were the apes DRIVING the car called Misery. Our car Misery, doesn't have GME brakes (stops) for EXACTLY THIS REASON. After all they tried to achieve what happened? They faceplanted right in the road. Apes kept on keepin' on and drove Misery right over that shiny crown of a speedbump toward recovery - roughly 2/3 of the pain and suffering inflicted. Better yet, price stabilized.
Their efforts also had a side effect: SSR = Short Sale Restrictions. SSRs went into effect IMMEDIATELY and were set to continue for the entire next day. (Their idea was to let the market settle and think things were safe. Then, hammer it again on Friday.)
Oopsie, it seems a big fat whale saw what was going on and, with a soft touch, nudged the price down 10% again. Shucks, SSR extended to EoW. Sucks to be a hedgie restricted to selling shorts at market value, not 100s below.
Now, we're into the weekend. So, what I here you say. Markets are closed you say. What recent newsworthy financial event just occurred? Hmmmm, American Recuse Act? Yeppers. That's $1400 going into non-savvy accounts. And, yeah, they will see $GME adding 70% over a week, $158 to $270 (time of writing). FOMO.
Here's what I see.
(It's my first time but, if I've done this right, this is on my chart.)
02/24 1st Breakout event, open-ended.
03/05 2nd Breakout event, open-ended.
03/10 3rd Breakout event, closed-ended. (both versions)
My read:
Scenario #1
That $1400 is already priced in to the stock. This forms a convergence event (CE#1) this Monday.
The suckers have their money and start flushing it into the stock during early trading on Monday. This means I'll be watching what happens closely for further indications of what to do.
Hedgebastards will want to ensure even late-comers have the opportunity to get that money in during lunchtime. Then, they wipe-out all the protective stops the n00bs placed. (Not being mean, I was one too. It's a perfectly fine mechanism and ABSOLUTELY what THEY should do.) I imagine, around end-of-day (2-3ET), there will be at least one stop run (maybe two).
Scenario #2
That $1400 is NOT already priced into the stock. This forms a convergence event (CE#2) on Wednesday 03/17.
Refer to Scenario #1 for the rest of the story.
Comment:
I goofed that scenario #2. Convergence forms at CoB Thrusday, 03/17.