Stop now. I know a lot of you guys, especially the younger generation. You certainly know gamestop or, i guess, somewhat younger generation. You know gamestop um you’ve probably been in a game sub at some point but i’m sure a lot of you haven’t been lately now. I know gamestop is kind of restructuring kind of their model and how they’re doing things, but what we have been seeing today up 51 is an absolute short annihilation. So all those short sellers are getting absolutely destroyed. We want to talk about what’s fueling this, why this is happening, how people made a ton of money, how people lost a ridiculous amount of money as well, because there’s two sides to this and then what are we gon na expect for the future? Here is gamestop going to a hundred plus or is gamestop headed down sub thirty dollars, we’re gon na dive, through some of the charts i’m gon na, give you guys at least some of the thoughts at least what is going on. So really quick. If you wouldn’t mind making sure you’re jumping down subscribing to the channel hitting that thumbs up button, i appreciate you it’s a friday night video. I figured why not do it. What else are we doing here tonight at the end of the day right so, okay, gamestop, look at this massive move, so it hit a high of 76 here today, absolutely nutty nutty moves. Now it ended up closing at 65.
01. The volatility on here towards the end of the day was just ridiculous. If we want to look at the five minute chart showing you guys what happened now, it opens up. It hits lows of 42 33 and then grinds up through the morning hours. It just kind of grinds up grinds up, grinds up, and then you see that slope, you see that kind of acceleration. You see that volume really coming in here towards midday, then you see kind of these gaps and i’ll explain what that was. This stock is pushing up, see these gaps here. That was because the stock got literally halted. It got halts on the way up at least once or twice, and then i believe it got hot on the way down at least once, and so what does that mean? That’S, when there’s excessive volatility they’ll actually halt a stock for five to ten minutes, and sometimes they can hold it for longer, but they’ll actually halt a stock. So you cannot make any trades now when you’re in it when you’re not in it. You could, of course, set your orders, but you actually can’t trade for that period until it reopens, and so usually once that hot once that well, not usually, once that halting began, we saw the momentum die. You know very very quickly because it kind of popped, but then it just kind of fell right back off and then held up on vwop this. This area right here around this 57 and ended up pushing up a little bit into the close, but absolutely insane volume and volatility for a stock that’s.
You know over 50 bucks that’s, you know you don’t, usually see a stock. This high, you know getting halted due to volatility, and we can talk about why so let’s let’s jump over here, and i want to show you guys finvez. The only reason why i wanted to show this was because of this. These shares float. So how many shares are available, so there’s only 50 million shares available. Now you compare that to a stock like apple right, apple’s got a ton more shares available to trade, so apple 16.63 billion, so okay apple’s not going to get halted because of volatility. Unless we had everyone in the world go ahead and market by apple at the exact same time, so that’s why we saw gme gamestop doing that now that’s, because we also had this is not showing up anymore. But the short interest here was actually very high. The past couple of days, not to mention really quick, i want to pull this up because everyone talks about citron, citron research, okay, they’re known to be a short seller, and they talked about going short gme talking about what’s, going on they’re, going to record and post. I believe this is their little record. You guys can go check it out. Citron research here on twitter go watch their video on youtube, see what they have to say. They say: gme is going to 20 by your own risk. Now, in this crazy market, we’ve been seeing at the end of the day, we’ve seen ridiculous moves on stocks.
That, probably you know, wouldn’t have warranted that in the past right you’ve seen stocks make massive moves and – and i think gamestop fundamentally speaking, is what they’re saying here should not have made this move uh. The problem is that this is on the 21st it’s. Currently, the 22nd and the stock was up 51 it’s, actually up more at one point, which means they were short. They talked about how they were short game. Stop we go back a couple days. They were shorting game, stop in here, okay, they got absolutely blown up and there were people who also went short game stuff. There were people who probably bought puts all of those people that shorted game stop in here when they said it’s going back to 20, which puts it down here, which is a reasonable area right, reasonable target. You know down towards a 50 sma wouldn’t. You know i actually would think that’s a pretty decent area of support for gamestop if it came out of this consolidation back in here and fell to the downside, but that got destroyed, they got absolutely blown up and the other thing about shorting is that when you Short a stock technically, your worst case scenario is unlimited. When you buy a stock, the stock goes to zero, which most likely it’s not going to do, but if it goes to zero, you know you lose whatever you bought, you know of the stock. You know your initial investment shorting.
You can technically there’s no cap to your amount of losses right because you’re borrowing shares to sell and then you have to buy them back now. The thing about this is that, when you’re buying these shares back at the end of the day, what’s actually happening here, you’re buying shares you’re having people who are, you know who are not short, who are just retail traders or whatever they’re, also going to be buying Shares and so you only compound the short squeeze, and so we started to see you know gamestop as it starts pushing up not only were shorts, forced to cover and i’ll explain that in a second, but you have people who are going long. Just you know fresh. You know someone who’s brand new, saying hey i’m going to buy gamestop whether they saw something online. Maybe they saw somebody call it out whatever they saw tweet whatever it was that that’s what they do, then you have shorts who are covering and many times. What you see right here is that shorts are actually forced to cover because they start getting margin calls from their broker. Their broker says: hey you have this much. You know leverage into this position. Technically, we cannot allow you to. You know, lose this much money. So we’re gon na have to cut your losses and they’re going to immediately fill you and get you out of that short at some point, and that may have happened.
You know up in here for some people which, even though the stock ended up coming back down a little bit later, they had no choice, but their broker had no choice but to get them out of that position, and so their broker automatically buys back their shares And they get crushed because they lost a ton of money and at the same time, that only adds to the buying volume, and so the volume keeps increasing, and then we have the stock halted for volatility just in absolutely insane. At the same time here, i think it’s actually kind of crazy. If we go back, i i was looking a little bit further. Some of these comments – and things are absolutely hilarious. If you just type in citron, um and they’re actual, we can go to their account. We went to their account, but i feel i honestly i feel bad because at the end of the day, they’re fundamentally saying hey, here’s what’s happening, but in this kind of crazy market right – and i i don’t know enough – i haven’t dove too deep to be honest Into the depths of like wall street bats and all these other kind of things going on because it’s been crazy, these short squeezes and the robin hood as they say, quotes robin hood traders or the retail it’s, really just retail traders. Here you know we’re talking about retail traders with the robinhood app and they say that as a relative term they can have td ameritrade.
You can have whatever app you’re using um but it’s. You know it’s it’s, dumb money or it’s it’s. You know small money, but enough small money now, as people are, are getting into this stuff. People are getting into that stock market like they want to make money and it’s almost a joke. It was almost a joke to go along and go against citron research here and what ended up happening was it got to a point where those shorts had to cover and it only accelerated that buying volume and it almost became just an absolute crazy. You know attack on the short position, so i’m sure gamestop will probably come back down. If we look at the chart, you know it’s got resistance up here on that 75 area. In terms of support, it looks like for right now this 60 bucks down towards, like this 55, this area i’m, actually going to draw a little box, see this little area right here. This is going to be an area of consolidation. This is a support area. Right now that we’re, seeing so that’s where i want to see it hold for the for the near term, if it can’t it’ll, probably come down further and come back to somewhat of a reality as things calm down at some point. But you know your resistance to the upside is back over this 75. 76. So once you break over those levels, then you have a further move.
Potentially, i would not be surprised to see a hundred bucks if the market stays super hot and you know we’ll see what happens next week. I i could see it happening and notice. One thing too guys is that we haven’t gotten that second round. I guess of the stimulus checks which you know once we had that first round the market was on fire for months. It seemed like we got these 600 and now we’re expected to get an additional 1400 on top of that, but also adult dependents, who were kind of the ones who got skipped out right last time. So a lot of the people in that kind of college age bracket like 18 to if you’re so claim as a dependent on your parents for tax returns. You know so maybe 18 to like low 20s. You know that’s also an area of people who may be getting some money in the near future. I i think this market could stay extremely hot for the coming weeks and months. So this is the type of stuff that’s. The reality nowadays and shorting is extremely dangerous, especially when all logic may point one way you know you got to be careful at sometimes so hopefully, this video was helpful and one last thing to point out really quick we’re going to look at some price targets here From tip ranks a link down below, if you want to check out tip ranks for yourself um, i love it for these price targets, but look at all these price targets – there’s one buy in here and their target was at 19.
. That was a month ago. So we’re way past that all these were downside targets. These are all like a massive downside and look at the stock it’s, because when everything looks like it’s going one way you kind of see when everything points one direction. When merrill lynch has a 1.60 price that’s. Just that’s a joke, but when everything points one way, when you think the market’s going to go down when you think the market’s going to go up when you think of stocks, you know got no reason, but you know to go down. It seems, like you know, it’s the flip side, we see the opposite happen, or at least temporarily, and it really messes – and this is how a lot of people do end up losing money at the same time. So hopefully, this video was helpful in some way. Please make sure you’re jumping down below subscribing to the channel, hitting that thumbs up button grabbing your four free stocks with weeble. That is this platform that we are using right here. Take advantage of that guys.