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Thursday, February 25, 2021

Will Raddit kids repeat it again?

I have heard numerous sad stories that Raddit kids lost their shirt by going frenze in chasing GME a few weeks ago. We all know by now what has happened following the crazy moonshot of GME, a crash down equally fast just within a couple of weeks.



About two weeks ago when GME lost about 90% of its value within a week or so, I told my chat group that I think purly TA wise, I think GME was ready for a dead cat bounce and it had a much higher chance to go up to 70 than 50. Well, I was wrong, at least timing wise as GME continued to go down to low 40s following my prediction. But I still liked its bullish charting and I was adding more put selling trades for it. Well, it has paid off pretty well by now as all the sudden, GME has revived and shot up 3 times just within one day basically. For today, it shot up to $185 from about $50 yesterday but closed back down to $110. I cannot find anything that may materially support this bullish move. So I guess the Raddit kinds are repeating again what they are doing: chasing it to the moon again! I of course don't know how high this round of chasing will bring it to but I very much doubt it will challenge its all time highs near $500. Let me repeat what I said before, I sincerely hope no one will get physically hurt by this frenze. And good luck, Raddit Kids!

For me, after comfortably pocketing the put selling gains, I'm gearing up for shorting GME again (via options of course). Let's see how it will go in a couple of weeks. I think the chance is very high that we will see another epic crash in the same speed and scale as the recent one. Just incredible how short FOMO people's memory is!!😨

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