Remarkable Work At Sea

It is likely that most market players and pundits alike, with the exception of "Roaring Kitty" and similar WallStreetBets/meme stock enthusiasts, expected shares of GME by now to be back in the double-digits, if not the teens, or worse. After a winter for the ages, with an epic run-up, and then another one, and then another one (!), GME has been remarkably workmanlike for much of the spring months. 

And headed into summer, you would have to observe that the winter meme stocks, namely AMC and GME, are sporting as attractive a technical weekly chart as virtually any chart in the market right now, as absurd as that seems to say. 

On the GME weekly chart, updated below, note the tightening of price since the winter surges alongside the notable drop-off in volume. This is pretty much how you would draw up a bullish setup going forward, regardless of how surreal it may seem. As an example, I, myself, considered the winter GME surge to be a classic sign of retail euphoria in equities, typically a contrarian bearish sign. It may very well have been the bearish tip-off of the February/March correction in growth stocks, for example. 

But as GME drifts quietly at sea these days, it need not mean the end of the rally once and for all, especially if the broad market stays afloat into summer. We have profiled other heavily-shorted names worth watching here, such as GOGO and MAC, though GME has demonstrated many times over it is capable of ferocious upside moves in a matter of seconds. 

And as long as the weekly chart holds $150, below, the threat of a $200 breakout is too menacing to short, first and foremost. But given how improbable it feels and seems, a colorable argument can be made that the pain trade may be, unbelievably, higher yet.