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Tuesday, January 26, 2021

The market is repeating the most famous curve ever in history!

Can you recognize the following curve?

If not, you are really stupid or ignorant at least😏! Of course, you are not stupid at all if you are a Marman, not knowing what has happened on the earth in the past few months😜!

This the famous 拜痴曲线 (BidenIdiot curve), the blue one, which tells people how the demented Biden stole the 2020 election to become the fake president! So from now on, in my investing terminology, I got a new term, BidenIdiot Curve (BIC), which basically means anything that shoots up vertically without legitimate reasons. This is my way to pin the Biden idiot and his whole gang onto the Hall of Disgrace (耻辱堂) forever!!  

Now we just got a stock that is showing a perfect  拜痴曲线, and you probably already know which one it is. Yes, the famous GME squeeze run.


You may ask how it is possible that a short squeeze can send a stock higher by hundreds of percent?   

After all, GME is a heavily debt-ladened retail seller of video games and accessories. Most of what the company sells can be purchased online. So, their retail stores are obsolete and unnecessary. And, given the heavy debt load, the company seems destined towards bankruptcy. There is nothing changed with the company. Growth rates aren't expanding. Earnings aren't improving.

Well the sudden gain was purely fueled by a stock market research report that listed the stocks most likely vulnerable to a short squeeze. GME topped the list of the most shorted stocks. And, voila. All that happened was traders jumped into positions in order to squeeze the short sellers to cover their bets. At the peak, GME had 71 million shares shorted, even more than its available floating shares (145% above)! You probably cannot find anything more crazy these days in the market, just like you cannot find any more disgraceful election stealing by the radical Left!!

So here you go: when trading started to level out earlier Monday afternoon at around $80, the stock had retraced much of its big move to $159 and was back to up "just" 23%, but Monday's gain comes on top of a 51% jump on Friday... which follows a 100% gain in the prior week. In fact, the once-left-for-dead retailer is up roughly 325% this year.  And it is up around 31 times from last April's all-time low of $2.57! 

I wish I'm smart enough to ride the idiot curve but I'm anything but smart of course! Just like the famous election fraud that I had no clue at all to even think about it happening, I had no clue that GME could jump like the Biden idiot! Having said that, I still want to try my luck to gain something from this once a century craze: Believe or not, I'm shorting GME now!! Of course by no means I dare to naked short it directly. I'm just shorting it via a special option strategy which has a wide margin of safety built in. My rationale is that after so many days of extreme hyper for GME that has likely squeezed all the shorting souls to death, it should at least cool down a bit. Looks like till now at closing today, I have been wrong but we still have 3 days to go. Anything can happen nowadays! 

I cannot share with you the specifics of my special strategy as it is only reserved for my DW Family members. Will see how it goes. Keep my fingers crossed for the next three trading days😄 


PS:
I have registered as 深山老林 at SafeChat (SC) (You need to download the SafeChat app first) and have set up a new SC chat group. I'm gradually shifting our major social media interactions to SC instead of WC. If you'd like to join my group, sign up a free SC account easily and search for me and connect me as friends.  For friends sharing  similar conservatism views, let's come together to form a better chatting group that won't be constantly disturbed and harassed by the insane radical censorship!


 


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