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GameStop, facing declining brick-and-mortar sales, became a target for short sellers who saw its business model as outdated.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
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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)
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
Not financial advice
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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
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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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
As with any stock we need to make higher highs for the push to continue
