You Only Live Once! That's the sort of sentiment that's driving Gamestop north like nobody's business.
GME share price rocketed only because a bunch of Robinhoods pumped it. Then some guy who builds rockets tweeted about it, and it moved madly more north than ever.
Billions were lost by short sellers, and they then turned long joining a load of other late comers. Price when to 'the moon' and may reach MARS next stop - some say. 🤦♂️
There is nothing of fundamental value matching GME's share price. Market value has hit $10 Billion for what? Nothing. Robinshoods were quite open about it that they just got onboard, driven by FOMO and YOLO.
There is much to be learned in this one. How? Because similar forces are driving the DJI and Tech indices in America. DJI current value exceeds true value by about 20 times.
All of this madness was played out in the Dotcom bubble years ago. We know how it ends. We don't know when it ends. The beginning of the end, is right now.
This is absolutely not a recommendation to invest in this stock.
There is good educational value in watching this stock. New traders would benefit from having a shot, only on Tradingview's paper trading account.
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Lesson so far: Don't attempt to short an instrument that has just gone EXPONENTIAL!
Shares in the GME rocketed again on Wednesday 27th Jan 116% at the start of trading in New York. That takes gains in the last week well above 300%. Gamestop is REPORTED to be the most shorted stock on Wall Street, with some 30% of the shares thought to be in the hands of hedge fund borrowers. Some hedge funds are therefore in a right mess.
What's the company's true worth? Reddits simply do not care!
Several brokerages crashed: Charles Schwab, Robinhood Markets, Morgan Stanley’s E*Trade and Fidelity.
Market value has risen more than 20 times this month alone to about $26 billion, making GameStop bigger than more than a third of the companies in the S&P 500 Index.
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Chamath Palihapitiya creamed off and ran, with a big stash of dosh. I reckon the crowd will follow. RSI on daily is approx 98% - hence right for a correction or closing of the gap up. But this is not a prediction. I don't do predicitons.
I just received this message from my broker (house rules prohibit from naming)
>>Due to the recent extreme volatility, and in order to prioritise the service we give our existing clients, we are not allowing any new positions to be opened on the US stocks GameStop and AMC Entertainment.<<
Almost identical messages will have been sent to other traders from various brokers.
Two matters immediately arise in my perception: 1 - the 'house' has the advantage and does not like giving it to traders. 2 - there is an element of nannyism in this.
But do adult people well informed of the risks need to be 'protected' from markets or themselves. Come on. I did not arrive on earth this morning.
I think this is about brokers protecting themselves.
this is insanity... the business isnt worth a damn thing these days lol
Captain_Walker
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@FXKing009, LOL! Insanity rules stocks and stockmarkets - along with loads of other things. 😂🤣
Captain_Walker
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@FXKing009, True but social media has power over 'sentiment'. Markets are mainly about sentiment, which is why technical analysis works (to a large degree).
FXKing009
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@Captain_Walker, completely agree with that my friend... i just pressed play on the chart after typing and did i just see this trash gap UP!?
Aphaynes
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Its no different than what is happening with Crypto. No value in the real world and yet as long as people keep pumping into it, it will always be on the up
Captain_Walker
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@Aphaynes, Of course. That's why I called it 'the Casino'. But in contrast people believe that equities in the DJI have value. The trouble is that in terms of delivering value, there is only a small chance over the next year or two (with price of the averaged stock rated at 20 times realistic earning potential.)
So - there are casinos all over. But professional traders whilst attending the 'casino' are not actually gambling. They of course need that ~80% of traders who consistently lose money.
pipinsight
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However, now Gamestop has that market value and "free" publicity/marketing, they have a real opporunity to turn their company around and make it an online marketplace leader for games. They just need the right CEO and a fast execution before the next stock becomes headlines.
Ryecatcher
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Elon bringing it home!
Captain_Walker
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@Ryecatcher, LOL!! Yep! 🤣 I'm not trading this. I'm watching to see when the suffering happens.
EasyCharts
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Whales will win eventually but this is great fun to spectate