GME Gamestop Weekly Chart; Short-Squeeze Drama

The GameStop drama is all the rage the last few days. GameStop? Keystone bot a gift for a friend in the GameStop store--17 years ago and has not been in one since! Joking aside, the stores remain popular by some folks. Are any of you knuckleheads playing around in there? There is nothing there that will ever capture your heart, it is just the thorns without the rose, be careful of it in the dark, as Tom Waits would sing. GME rocket-launches +400% last week.

GME was at 17 as the week of trading ended on 1/8/21. Starting the week of 1/11/21, varoom! GME was running like it just stole a purse. Last week is the +400% but you can see it has been a 3-week affair already. The high topped-out, so far, at 483 so that is a +2740% rally from 17. It is about a +1800% rally using the closing price. Anyone on the short side got smoked, crispy-fried.

The David versus Goliath story is being offered to the public where a merry band of Reddit and Robinhood users are putting-it to the mean ole hedge funds. That's probably only part of the story. There is always another side of the trade. The Red Robin crew was a catalyst and got the ball rolling but there were likely hedgies in on it from the beginning. Traders are opportunists. They were smelling something good, like yesterday's warm pumpkin pie with cinnamon sprinkles. The hedge funds are moving the big blocks of shares.

The hedge funds on the losing side of the trade are bleeding and it would not be surprising if someone went belly-up. There is no mercy. If there is blood in the water, the sharks are out. Attack! Other hedge funds took the Red Robin side of the trade, the long side, and are pounding the weak hands on the short side. The hedge funds that were shorting GME are wounded so other hedgies are gladly trying to slit their throats and finish them off; all's fair in trading. It is likely more of a hedge funds versus hedge funds game.

Price goes parabolic from the excitement and pops above the upper standard deviation line (pink) and at one point about 11 deviations out which is rare as hen's teeth. Technicals are not much use for a crazy stock like this right now. It will need to settle-down for a few days. Price will likely chop at the elevated levels for another couple weeks. The brown circles show accumulation weeks so the Red Robin crew, hedgies or others that figured out what may be coming, and likely all three, were buying ahead of the rocket launch. Right now it is a crazy party town.

Robinhood continues limiting trading in GME, AMC, BB, EXPR, GNUS, KOSS, NAKD and NOK. TD Ameritrade places restrictions on trading in GME, AMC, EXPR and NAKD as well as CVM, FOSL, NOK, BBBY, FIZZ, GSX, IRBT, NCMI, TR, UONE, VIR, NAK, DDS and KOSS. Aren't you proud of the faux free market crony capitalism system? What a joke. The best path forward is to simply stay away from all these tickers.

The Red Robin folks are trying to move silver today, with some success. It is reminiscent of the Hunt Bro's in the 80's. Silver is a huge market, trading at over 30 times a GME each day, and JPM is in control of a lot of the activity, so the expectation would not be for a big move in silver but +10% and more right now is a huge move and silver tagged 30 this morning. There was not a lot of shorts in silver, in fact the market is leaning net long, so the short-covering strategy appears odd. Some weak short hands will shake out. Silver is a different animal than a stock ticker. It is a commodity and trades in a more liquid market. After a pop for a week or three, silver will likely set up as a nice short. Keystone is not long or short silver right now and will stay away from this nut arena for a little bit. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.