The Investment Thread

Turfie said
I believe it. I also think something happened today. Maybe BBBY lifted the meme basket just enough and caused an algo frenzy. I say that because Bbby and Gme halted at the same time. Both because of upwards movement.

Today GME had a 5-minute candle of 6 million. Which is greater than each of the past 4 trading days.

So I mentioned it a few pages back about 3 weeks ago that BBBY was about to hit all time lows and formed a bottom. That is the perfect exit point for a bear that has been short on a stock that has seen a ton of volatility. Then the stock was cheap which makes it attractive for retail and pumps. That is when I bought the $10 calls that were basically pennies. I sold them too early but was thrilled with the profit. I've been watching it for a breakout run to flip since then but I had zero interest in holding the stock. They could easily file bankruptcy or dilute the stock at any given moment.

It may not be done either, it has been holding Fib levels even with the massive drop this afternoon. I was watching the level 2 data and the book orders were really struggling to fill in after the double top and it was pretty obvious it was going to have a short term technical crash so I bought puts. It recovered a lot going into the bell. The good news, there is still a fair amount of short interest. The bad news, a whole lot has already been covered and much of the short interest are fresh shorts that entered this afternoon so I'm not too sure how much squeeze is left. If I had to guess the top is in but all it takes is one more cycle of a hot run and shorts panic closing and if it breaks $28.04 then it's going to make a run for $40. If it does that then the attention it will get could keep it going for some time. Unlike GME, it's not going to hold value and will come crashing back down in a hurry as well.

I'm likely done with it. It was pretty scary watching how fast the order book filled on the sell side and the buy side went ghost. If I had bailed 30 seconds later it would have cost me a ton of money when it made the drop from $26 to $18 in just a couple of minutes. I had a migraine this afternoon from staring at the screen today, you literally can't blink when scalping volatility like that.

It's also worth noting that a few crazy days of short squeezes last time really sent the market screaming down. That mid afternoon sell off was crazy fast in the SP and held the close below a really key resistance level. If SP doesn't break and hold above $430 then the rejection could be something fierce.