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GameStop, facing declining brick-and-mortar sales, became a target for short sellers who saw its business model as outdated.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
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We will let the chart speak for itself
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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)
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Quick potential trade to earn 10%
Not financial advice
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Target Reached.
Expecting a pullback and then another move higher..let see how things progress
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Should see GME make another high..lets see
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Ok looking for a pullback. lets see
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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
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Ok got the gap down we were looking for..now we are watching for price to make new highs
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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
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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
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Momentum picking up
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As we said...lets see
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Ok nailed it again. Next target and support identified. Lets see how this plays out
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Tracking price like a hawk
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Annnddd..we nailed it again to end the day..next support and targets in scope..
Lets see how this progresses
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Ok price hit our support region..if it holds we are heading higher
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Price touched previous support..this region should hold and we should head higher
Lets see
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Ok a move higher should be happening soon..
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We are still looking higher.
FYI- a sustained brake of support levels is what would make us look lower..stay tuned
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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
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As expected so far...
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As expected...just watching support levels for now
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Moving as expected.
Still looking higher
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Price hit support..still looking higher
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Testing previous support
This level should hold..lets see
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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
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This could break either way..
We still need to get about 17.19 - 17.39 area
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We really need to get over that 17.19 - 17.39 region
Until then we are looking down before we start looking up again
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Near term targets
Still need to break over 17.39
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Lets see if we can push over 17.39
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Zooming out a bit..lets see
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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
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Nothings changed- yet
As with any stock we need to make higher highs for the push to continue
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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!
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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!
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If we can push thru the yellow box we should be off and running again
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Zooming out as I think this view is helpful
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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
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Ok here we go....
Lets see
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As expected...
Rest of the week should be fun lol
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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!
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And..Here..We..Go
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Oh how we love trading halts..
If we can hold this level then we should move higher
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Although we hate them pullbacks are healthy and frankly needed
As usual just watching support and resistance
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The 70ish area is what we are watching next with a move to $90-$100 shortly after
Lets see!
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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
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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!
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If price breaks down further then looking at the next support
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Specific Target
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Ok should head higher from here..
Lets see...
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As expected..lets see if we can grow some legs and begin moving
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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
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Ok get ready...
Expecting some good movement (until they halt it) from here on out
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Progressing nicely
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Still looking much higher but thinking the 44 level will be our next resistance area
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Levels should hold up here..
Still targeting the 44 level next
Lets see!
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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!
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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
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Not seeing an indication this level wont hold
Still looking higher
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One more drop lower and then we should start the move higher
lets see
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I dont want it too but i still think we see one more low down to the support box before this takes off
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Our patience will be soon rewarded
little lower into the support box and we should begin a trek higher
Lets see
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Market dumping which is contributing to this move lower
But as usual just watching the support areas
Still looking higher
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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
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Ok this is what we were waiting for...
Now lets see if we can get some follow through
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Once we get over 31.22 things should start moving again
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The market falling is weighing GME down...
Notice the white trend line...price should head towards it
Lets see
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Like we said..market dumping is weighing
Lets see if we can hold the support below
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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
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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..
@impossiblebull agreed. Im not sure if a squeeze of this magnitude will actually happen but the price structure is definitely in place. The amount of money that Shorts/Counterparties would have to pay out (if a sizeable # of DRS'ers hold) would be a Trillion+ if price touched even the lower region of the target. Not sure the system can accomodate which could lead to temporary chaos. The lawsuits stemming from something like this would be epic.
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@Heartbeat_Trading, I hear the true number to clean this all up would be approx 60 trillion, but the clearing house insurance would only cover 30 lol
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@impossiblebull, yeah there are a lot of wild numbers that ive seen on this but whether 1, 30 or 60 anything on those types of scales will cause chaos. At the end of the day someone is going to be left holding the bag on these FTDs and shorts...who that someone ends up being is what we are all waiting to see
@wompwomp007, take it easy "TradingView for Android" green texts
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Took advantage of the rough start to open new positions on historical support level. Hopefully that will get us going xD
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@Jungersol, Someone should tell the Short Idea guy on here what a historical support is lmao, hes about to get bumfucked hard. You on the other hand are very smart in finding that support.