A while ago I put some speculative money into AMC and GME, expecting that some sort of deja vu will come back again for them, when the Raddit kids come back to drive them crazy anew!
Well, we are getting it right now, especially for AMC. Honestly I didn't expect that much for it but we should never underestimate the power of the Raddit kids, right?😇
For AMC, my thinking was simple, regardless of how fundamentally bad it is and probably will end up with bankruptcy at some point, the quickly reopening of the economy will at least trigger a short term bullish run for it sentiment-wise as more and more people will start to go to the theater again. So I was expecting to see some bullish move for it after it had collapsed following the last crazy run.
For GME, actually I think there may be some fundamentally related recovery brewing for it. I have read that the company has gone through some significant reorganization including the top management with the CEO being replaced as well. It is purging "toxic" assets as much as possible, aiming to transform itself to a competitive online gaming company eventually. Can it successfully materialize the rather ambitious goal? No one knows for sure of course but I don't think it is a zero possibility and I'd like to give it a chance. Maybe that's the reason why its long term TA looks quite bullish to me. I was betting it probably wouldn't decline below $100 again in the foreseeable future and it is a real possibility that it will regain the $300 level soon.
Sure the past few days' euphoric moonshot for both feels like a pure deja vu of repeating what had happened a few months ago and I don't think the current level for both are sustainable for now. So chasing again from here will likely be a fatal suicide. For that, I started to short AMC!
Are you shorting shares or bought puts? I understand that some brokerage houses no longer allow shorting these stocks. Maybe they still allow put buying, it is expensive to do so.
ReplyDelete