How GameStop found itself at the center of a groundbreaking battle...

Look at the volume. In the last couple of days there were more sellers than the buyers. People who were sitting on call options with “unthinkable” call strike of $50 which they got for pennies suddenly found themselves sitting on immense riches as each option trades in a block of 100. All those people were cashing out while a bunch of cultish fools were buying at a price already 30 times it’s normal price hoping to see a 1,000% surge.
Today on that sub, the Wall Street bets, I saw a post where someone said they put all their savings into this stock and even convinced their parents to put all of their savings into GME as well. That guy was saying he wanted to hurt himself and didn’t know how to deliver the news to his parents. People need to understand that by the time they find out about a hype they are already late. You can still cash out well, but that requires actual knowledge and desire to learn.
GME is over. Stop turning it into a religion. Stock price generally represents company’s worth, a sum of all assets minus liabilities. Mother Nature simply won’t allow free market to support stock that has virtually no value behind it. The stock is dropping because mutual fund and 401k managers are pursuing stable growth and probably started to exclude GME from their daily trading while the price of the stock is so far away from where it approximately represents the value of company’s equity (assets - liabilities). So, while yes, many are holding the stock, many institutional traders whose job is to deliver according to risk agenda are not buying. So, your lack of supply is now matched by the lack of demand. Watch it - Mother Nature will correct this discrepancy on its own.

PS: look at open interest for GME options. There are virtually no options left that are worthy of exercising. That’s what is dropping the price.

 

I would never make a huge investment into something like GME. While I like that the hedge funds got hosed this is based on a viral situation not solid fundamentals. GME does have potential. Closing the brick and mortar stores and going more online is a great move for them but doesn't justify the run up in stock price.

 

It's actually sad. A thread about mental health and a link to a suicide prevention hotline are close to the top in the WSB reddit thread list. A lot of good people got burned and lost their life savings because they believed in the hype. However, they also have their own greed to blame. If one's mind wasn't blinded by $$$$ signs, this outcome was entirely predictable, and I predicted it right from the start.

Unfortunately, what the masses will see is the MSM news pieces about the few lucky ones who became millionaires overnight. And then, many others will attempt their luck and start day trading or follow other get rich quick schemes. That's not capitalism, that's gambling. Gambling actually hurts capitalism, and society as a whole, because potentially productive people remove themselves from society.

 

Folks, remember the old sayings:

-If something seems like it is too good to be true, it probably is.
-Easy come, easy go.
-What goes up, must come down.
-Reversal to the mean is a powerful force.

All of those apply perfectly to this GME episode.

 

On the sub they're claiming all the trade volume is bots buying and selling back and forth to each other. That must be it, right? Its probably not at all just a hype induced cycle of yesterday's sucker becoming today's remorseful buyer looking for tomorrow's sucker, and so on...

 

We created this country through revolution. It's time for another.

 

LOL! People are crying about the unemployment and GDP drop caused by covid. What do you think would happen to the economy during a revolution? But, keep daydreaming. Luckily, there are not many of the revolutionary types.

 

What would happen? We'd weed out the weak and the corrupt.