Short Squeeze In Reverse
Yesterday I asked GameStop Plunged 30% Today, Is the Short Squeeze Over?
This was my answer:
Squeeze Likely Over
My guess is the squeeze is over. Hedge funds have covered their shorts. And we have a three surge stage that frequently marks tops in short squeezes.
If my thesis is correct, GameStop will go back where it came from. The market makers will pull bids as they did today.
Today offers solid confirmation. People who had huge gains need to preserve them before they are gone.
GameStop fell all the way to $74 from a short squeeze high on January 28 of $483.00. That’s a 4-day intraday high to low decline of 84.7%.
The hedge funds who covered at $483 are really smarting.
Flashback January 30
Let’s flash back to my January 30 post Naked Shorting is Illegal: So How the Hell was GameStop 140% Short?
Movie Coming Up
The book on the World’s Biggest Casino is already out . I confidently predict the movie is coming up.
Two main characters are ready identified. Vlad Tenev the founder/CEO of Robinhood and DeepF&ckingValue the 30 year old engineer in Boston on the WallStreetBets side.
The CEO and the CIO (the villains) at the Melvin and Citadel hedge funds will be part of the main cast members.
Those who produced “The Big Short” will handle this one the same way.
Movie in the Works
Yesterday, Quartz reported the GameStop Saga is Already Headed to Hollywood.
Following a bidding war, MGM acquired the rights to adapt Ben Mezrich’s GameStop book proposal, The Antisocial Network, Deadline reported. Mezrich previously wrote a book about Facebook’s founding, The Accidental Billionaires, which became the Oscar-winning 2010 film The Social Network. Early Facebook co-founders Cameron and Tyler Winklevoss, who were portrayed in The Social Network by actor Armie Hammer, will executive-produce the film based on Mezrich’s as-yet-unwritten book.
Buying the movie rights to a book proposal—not an actual book—is unusual, but it underscores how ready-made the GameStop saga is for Hollywood. It’s also further evidence of how quickly the film industry needs to move in order to secure potentially lucrative intellectual property nowadays.
That was surprisingly fast.
Mish
If there is a movie, who will be the hero? Will there be any? Looks to me like some shorts took a big loss, and a lot of new investors took a lot of little losses. Is there a moral here?
The Reddit genius needs to learn to take his profits when he can. Imho, failure to take profits on such a huge win shows a real lack of judgment….
Profits are not real until realized.
Unless they had managed to buy >100% of the stock, the end was inevitable.
Bezos blows away quarter. Hoocoodanode? Political rats with the right stocks laughing all the way to the bank behind their masks.
Wants time for Blue Horizon and perhaps the Washington Post or maybe his ex-wife in the settlement got control of the company and kicked him out.
Oil Price has a nice article on how naked shorts are made, maintained and hidden from regulators.
Looks like the silver trade is problematic.
How so? Looks pretty much like BAU to me. Which chart are you looking at?
If you’re looking at NY Spot on Kitco….you see those little spikes down? Three of them. I think that is a sign of HFT algos….testing support. But support is good.
I look at the spot. Good luck. I sit this one out.
Thank you. I think the so-called silver storm was a tempest in a teacup…today was just a distribution day, after a failed breakout. Nothing looks particularly ominous that I can see.
I’m not a pro, so it’s easier for me to study charts on SLV than on the Comex. The chart looks good technically….just a correction……maybe a slight smackdown to teach the peasants a lesson….but nothing at all unusual.
Good volume bars below 25…. SLV held 2nd support off the 150 day EMA. Silver is still trending well. Following the rising 50 day EMA as best I can tell.
I don’t look for silver to break out this week with a rising dollar and TPTB worried about social media driven market assaults….but the long term chart looks great. Today is just a bump in the road.
Please tell me about anything technical you don’t like. I’m always up for some mentoring.
My interpretation is that silver is still in a broad trading range. It hit the top and refused to breakout. Additionally I saw that $30 billion in silver traded off-market over the weekend and that’s enough to cover a lot of shorts and to satisfy a lot of demand so no short-covering in view so I decided to wait and see. It could still break out and if it does the runup should be long enough to hop on. The three downward spikes in my opinion were market makers testing the waters as you correctly saw. In general I look at charts but I also look at news and (gasp!) fundamentals. I am no oracle but thanks for the kind words. Hope you make a million.
I remember reading back in 2003 that the world would run out of silver in 2020. I guess we are out now, then?
No idea how dated public info is for short interest, but I’m seeing short interest still @ 121% on GME.
well the Vol is still insanely high. Traded as low as $85 went back to $129 (between 10:30 am and 11:30). Funny enough Robinhood just lifted its restrictions on GME. How facinationg to watch th little guy Vs. Wall Street.
To a new (WSB) trader bent on pushing GME up, this sudden release of buying limit would look like RH was forced to allow Wall ST insiders a chance to get out courtesy of friends @ DTCC.
If this is an incorrect observation, We’ll see GME continue to plummet – it’s below $90 after hours.
We also may have just witnessed the biggest pump/dump scheme in history, accidental or intentional.
As long as they don’t let facts get in the way of making a good story it will make some money.
The term “straight to video” is dated, I suppose….but it sounds like a bit less of a blockbuster than The Big Short….
But if such things are selling well, I have a proposal on the coming take-down of JPM and the Comex….we could call it…hmmmm…..let me think.
Revenge of the Physical?
Ted Butler’s Excellent Adventure?
Hunt Club?