09Jun3:27 pmEST

GameStop Battle At Dusk

As recently as early-January of this year, it would have been hard to fathom that any given GameStop earnings report would have much of an effect, if any, on virtually any other stock in the market beyond GME itself. And, yet, as we head into GME earnings this evening after the bell, a colorable argument can be made that much of the near-term sentiment regarding "meme" stocks, heavily-shorted stocks enjoying squeezes, and perhaps many retail stocks at-large hangs in the balance depending on the type of reaction we see to GME, either way (if at all).

While I certainly have my opinions regarding the entire meme stock phenomenon as being a byproduct (read: moral hazard/unintended consequence) of the activist Fed era we are living through, this is simply a reality to be faced. And, beyond that, gauging the GME weekly chart, below, the stock remains in splendid shape form a technical perspective. Simply put, this is not a chart I want to even consider shorting. And bears will need earnings to trump the bullish technicals, which we know is absolutely capable of happening.  

Overall, the IWM taking a dip after getting off to a red-hot breakout start to this week is the larger issue for the market--Can IWM hold above $230, for example, especially with the FOMC one week away? 

But GME is no small potatoes for this market, not from a sentiment standpoint, at least. 

The Daily Squeeze Some Hors D'oeuvres Out of t...


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