This is my 30 minute bar chart of GME this morning around 5 AM ET, for my technical analysis take. I put it on a semi log scale because I want you to see that while this looks like a top, and the price has come down from 500 to 171, two longer moving averages are still trending upward.
The problem for HODLers is that the first MA is at 117, and the second is at 57. Margin accounts not already wiped out overnight will be wiped out well before the decline reaches these trend MAs.
The other problem for later buyers is that resistance is now clustered around the 280s, so anybody who paid more has little hope of recovery.
As far as those who bought premium bloated calls above 280, kiss that money goodbye. Even above 200 the premium decay will kill unless the rebound rally, when it comes, blows through that 280 area.
It will be interesting.
As for the mock it, yesterday I reported a 2-3 day cycle projection of 3800. A little later I said na ga da. Well guess what! Ga da!
The 5 day cycle projection is currently 3835.
At least.
Here’s Stock Proctology Proctology Perfesser Jimbo’s take from Down Under last night.
10 hours ago, Jimbo said:A QE ENVIRONMENT IS A PARADISE FOR SPECULATORS
As I have stated before a QE print environment creates a hothouse environment for speculators.
Its great for speculators….not so much for investors.
No good for short sellers.
In this environment the most shorted stocks will find it easy to raise capital.
i.e. the companies that lose the most capital receive the most capital.
A sort of capital destruction situation.
Here’s the big picture:
There were lots of sell signals last week, but this isn’t the big one. Yet. We just need to be prepared for it.
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In the mid month QE update, I concluded the intro summary with this warning:
