End of Day Wrap Up 03/01/2021
HAPPY GREEN Monday everyone! What a great start to March as we saw many of the stocks begin to rebound from the crazy few weeks. GameStop (GME) and Sos Ltd – ADR (SOS) were my top gainers for the day, and they are only getting started.
Furus Show Their True Colors During a Bear Market
If you haven’t figured it out, I ONLY buy BIG UGLY dips on RED days. I’m not afraid of a little blood. I want those who follow me on Twitter to know it’ll be okay because I absolutely HATED when furus took advantage of my fear when I was new to trading. NO ONE was helpful and only added fuel to the fire by saying they’re exiting all positions because the market is too unpredictable. I found it to be incredibly irresponsible back then, and I still find it irresponsible now. I mean, HELLO, this is the stock market. Everything about it IS unpredictable.. Those who fail to overcome and conquer in a bear market aren’t individuals I consider to be successful traders. They either learn to adapt or they can go cry a river and solve nothing and take others down the wormhole with them..
Highlight of the Day: Next Level Up for GameStop (GME)
I’ve mentioned in previous posts that I’ve traded the same stocks over the last year, and I know my stocks’ personality and patterns. It makes no sense for me to search new plays, when I know the charts like the back of my hand.
Today, I refrained from going overboard about GameStop so I don’t annoy people who are anti-GME. Since I’ve been in GME from the $11-13 range last year, I knew this was an undervalued stock based on all my DD last year, and with all the new DD I’ve conducted over the last month.
Stock Prices in 2012-2013
For comparison’s sake, this is what the stocks traded at over 8-9 years ago when I felt the following were undervalued (all good long term stocks):
- Activision Blizzard, Inc. (ATVI) below $13 (now $98.72)
- Microsoft (MSFT) below $40 (now $236.94)
- GameStop (GME) below $20 (now $120.40)
- Electronic Arts Inc. (EA) below $12 (now $137.27)
- Square (SQ) below $40 (now $241)
- Shopify (SHOP) at $35 (now $1,309.94)
- Chewy (CHWY) below $40 (now $104.80)
- Amazon (AMZN) below $250 (now $3,146.14)
- Alibaba Group Holding Ltd – ADR (BABA) below $60 (now $241.69)
- Walmart Inc (WMT) below $60 (now $131.37)
As you can see, in 2012, I thought GameStop under $20 was undervalued, so last year, when the stock price dropped below $5, I just couldn’t make sense of it all, especially considering all the variables. I knew back then, that the moment we shift from brick and mortar to e-commerce and distribution centers, the future of the companies will shift dramatically.
Long Term Growth for GameStop (GME)
Cost savings from commercial real estate, generating profits from adspace, adsense, social media, etc., affiliate programs, partnerships, cost savings from maximizing staffing efficiency would ALL lead to increased growth and profitability for the companies.
With the closing of the physical stores and ongoing growth in e-commerce and distribution centers, there’s no way this stock doesn’t break $250, at the very least. I see this running much higher long term as an investor.
I’ve also taken notice of their ongoing recruitment to fulfill job positions here as they’re looking to staff their distribution centers. I believe this is only the beginning, and I am excited to see the expansion over the next few years.
Price Action for GameStop (GME)
Today, GameStop (GME) traded with 42.92M in volume with 69.75M Shares Outstanding. Upcoming earnings will be between 03/21-03/25, and I know what happens the week leading up to any earnings. There’s much talk about the 03/19-03/21 date, and I agree with most of the opinions out there as it confirms my DD. There’s a LOT of behind the scene stuff going on, and the shareholders will be the ones to reap the benefits purely by holding.
I watched the red tape like a hawk today, and bought the big dip that dropped slightly below $100 after the market opened, accumulating as much ‘red’ days between now and the earnings date. As I watched it go from green to red, I ate up that dip, and patiently waited for the steady ride back up, closing at $120.40, and after hours closing at $115.68. As I mentioned in yesterday’s post, my goal for GME was to close above $120, and consolidate over the next week in this range.
March 19/21 What’s Going On?
Uncle Bruce confirms everything I’ve found when I did my research. I’ll let him give you the information in plain english because I absolutely love his energy, and the way he delivers his content does this GameStop (GME) situation justice. He has noticed all the patterns I have over the last 6 months, so I hope his videos are helpful for those in GameStop (GME).
GME is NOT the Stock to Short
Why would I say this? Trading is all psychology, and it’s important to understand the mentality behind why people would choose to invest in GameStop.
- GameStop has a loyal following, consisting primarily of gamers who want to invest, NOT day traders. Gamers who have a lot of money, money they are willing to throw away to achieve their goal. They have it set in their mind that they are not selling because they want to invest in the company. This is like a game and they have planned everything down to the T, strategizing and re-strategizing until they get the end result that they want.
- The people who chose to buy GameStop are aiming to create an even larger gamma squeeze than last month. The people buying are not just everyday people; institutions are buying too with the intent to create an even bigger squeeze. Shorts have not covered yet, so holding the position is (once again) CRUCIAL if we want this to move up.
- The support is BEYOND just buying stocks. These individuals have gone to the full extent of making purchases from GameStop stores and posting proof of purchases all to create a movement, to ensure that GameStop will have a better than expected earnings report, which will be reported between 03/21-03/25/2021, and to make a statement to hedge funds who have done nothing but hurt companies and investors over the years.
- GameStop Options bet that stocks will reach $800 within the next 3 weeks. Read about it here.
- GameStop short-sellers have lost $1.9 billion in just 2 days amid the stock’s latest spike. Read about it here.
What to Watch for Tuesday 03/02/2021
I will continue watching GME, ONTX, CLOV, AMC, SANP, HCMC, SOS and the cannabis, EV, and energy sector for a reversal back up.
How to Utilize My Positions List Below
Many ask how to utilize my top 10 green/red position lists below. Oftentimes, I will exit my green swing positions if it looks like there will be no continuation. My decision varies depending on what my cost price is. It’s all about managing risks, and if it looks like I’ll be in a position where, I’ll be down, I won’t hold, and will choose to reposition myself by accumulating dips on red days over a period of time until it’s ready for the next run.
To Buy On Green Days or Not
I will add to my green positions on green days only if it’s moving in the direction I like and forming higher lows, and showing a bullish chart. I make sure to scale when adding, especially on green days, because it can go south quickly.
To Buy on Red Days or Not
I will almost always accumulate my red positions because they usually move back up, unless it’s a clear pump and dump, which I will never swing because it’s too risky. If there are sharp spikes and a quick drop down, then it’s a clear pump and dump. If the chart slowly drops in price throughout the day, then that’s usually people taking profits. To make the call on re-entering or accumulating, I look at the 5D, 10D, 30D, 90D, 180D charts and I monitor the volume. I love adding when there’s little to no volume when setting up long swings.
Top 10 Green Positions (03/01/21):
Top 5 Red Positions (03/01/21):
I monitor Market Movers every single day to scan for new setups. I mainly look for positions with unusual volume that are at the bottom, ready for a reversal back up, or if they remain green, I look for a bullish chart for a continuation.
As always, if you made some massive gains, be sure to support your local and small businesses. Be the change you wish to see in the world. Believe it or not, we can make a difference in keeping these businesses open!
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Disclaimer : This should not be considered investment advice, and should not be used to make investment decisions. Do not buy or sell any stock without conducting your own due diligence. Information on eyelovegains.com is opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts and data provided here are not meant for investment purposes and only serve as examples. We are not liable for any losses you may endure from the buying and selling of stocks or securities within your accounts.