Make GME, not war.
Warm greetings from me to you, honourable intelligent WSB folk. Long time no see, bald beard bet (aka bull-fucking-a-bear) guy here with an update (and not a fin advice).
I know, some of you PermaBulls haven’t been feeling great lately, because SPY gay bears like me have been mercilessly interfering with your anuses on almost a daily basis. Well, in that relation, I have no good news for PB – because 🌈🐻 vanity fair is highly likely to continue, and I fucking warned you about this 300 days ago! Therefore, buying puts during pullbacks like the current one looks like a solid strategy to me, as the Big Short 2.0 SPY 2022-3 target is $220. However, I’m not here today to talk about red, but rather I would like to point at the big green dildos candles incoming.
“Butt where’s some good green shit, bald man?” – the question I sense floating in the air.
Lemme be perfectly clear. GameStop is set to RIP (arses), starting today!
GME daily chart
The technical outlook provided above may appear a bit overwhelming from the first glance, but I’ll explain everything in a sec.
The horizontal 🌈 lines you see on the chart above is the Fibonacci retracement tool, the measurement starting point is applied to April 3rd 2020 low of about three bucks (shorting hedgies surprised Pikachu face type of reversal), and the top point is Jan 27th 2021 inter-day high of about $450; this period constitutes GME phoenix-like reversal and the first chapter of the short squeeze of everything (squeeze your nuts yourself you fucking bot). Just a quick reminder, that Fibo is used by ‘traders (anagram)’ for measuring the potential corrective move, and 0.786 Fibo is a sweet and attractive level to hug and support the 2nd, corrective Elliot Wave – EW (for the in-depth discussion of why 0.786 is the perfect level for the price to touch down during a correction, refer to the Big Short 2.0 linked in the second paragraph of this post). All in all, 78.6% retracement level is one of the strongest support levels for the global bull trends that exist, and GME recent price action is the perfect manifestation of that. Therefore I really doubt that we will go below $100 in the near future.
04|03|20-01|27|21 bullish price action used for initial Fibo measurement, imho, also awesomely corresponds to the first Elliot wave of the global bullish impulse. The rest of 2021 and the beginning of 2022 price action incorporates into corrective EW 2 perfectly, in its turn. This one is characterized by lengthy consolidation around $180 (average) followed by a tasty 0.786 dip. The new-born Feb 2022 uptrend is just the beginning of the fresh 3rd EW intensive bullrun, and let me quote Wikipedia here, on its characteristics:
“Wave three is usually the largest and most powerful wave in a trend. The news is now positive and fundamental analysts start to raise earnings estimates. Prices rise quickly, corrections are short-lived and shallow. Anyone looking to “get in on a pullback” will likely miss the boat. As wave three starts, the news is probably still bearish, and most market players remain negative; but by wave three’s midpoint, “the crowd” will often join the new bullish trend.”
Wave 3 is my favorite EW, and for GME it will be juiiiicy!
This one is really interesting. Take a look at two pink resistance lines first. The thinner, straight one is what I originally identified as the main 2021 GME resistance about half a year ago: all of the previous cyclical bull runs (as well as the original January Sneeze breakout) were caught by it and subsequently reversed; three out of four from those cycles resulted in the powerful false breakouts – which illustrates grotesque selling pressure above this trend line (margin call protection squad maybe?). The dramatic reversal and subsequent bearish price action of each cyclical pattern take up to 90% of each cycle, and that automated, algorithms driven nasty pattern is aimed at keeping the broader investors circle uninterested in the asset, while trying to exhaust the existing buyers and shake weak hands. Well, it looks like there are no weak hands left (thanks 0.786 Fibo supportive buying pressure, coming mostly from 💎🙌💎 direct registering shares), so buckle the fuck up, autist, this rocket goes to moon with or without you.
Furthermore, take a look at the thicker, curved pink resistance which is steeper than the one discussed previously – this reflects additional
short dick pain selling pressure inserted on the stonk starting last November. This beautiful smooth line covers all of the false breakouts – and it also incorporates the complete EW2 price action, acting as a resistance through Dec21-Jan22 (almoasst on the chart above) and currently (LFG). You may notice on the chart above, that the price is now trapped between pink curved resistance and the red 21 day exponential moving average – which acts as a strong local support for the newly commenced bull trend.
Speaking of moving averages. 21D exponential MA is used by traders for identifying the trend locally. For GME it clearly acted as an intermediate support during the uptrend phase of the cycle morphing into resistance for the bearish phase (check the chart above for sup/res). Now it’s SUP, and flipping sup/res usually last for weeks! 80, 150 and 200 day are major simple moving averages which are used for a longer term trend identification, and those were rejected as supports one by one in Jul, Oct, and Dec 2021 accordingly. Now they act as magnetising resistance levels, begging for the penetration from the downside – if you know what I mean.
The parameters outlined above represent the major resistance zone of $120-$200, breaking through which will shoot the apes into space. Wen break? etaSon:
Futures cycles theory simplified for dummies through TA: check RSI at the bottom, which perfectly structures into the u/W shaped cycles – where peak zones correspond with the quarterly futures rollover dates/periods. Firstly, this RSI trending does not look like normal behavior at all. GG, take a look at this gay bear robo algo pathetic shorting, instead of Porn Hub for once, damn it!
Each time, after that red RSI downtrend completes, we approach quarterly bullrun’s acceleration (purple arrows pointing up). Notice, how Relative Strength Index shoots to its upper gray resistance towards the end of each cycle, and currently we have plenty of RSI upside left. That, in turn, points at the aggressive bullrun in the next couple of trading days. Especially considering that:
GME 4H chart, cup and handle completed LFG Cup and handle reversal formation has just been completed on 4H, just above diamond handed 0.786 Fibo support, which is ultra bullish. Who ordered nuclear sandwich for breakfast: notice, how the shape has been forming in between blue Fib and pink year-long resistance, and how handle is supported by daily 21 EMA – what a goddamn juicy technical picture! All that is left is to FUK!
TR;CR: GME is set for one of the strongest breakouts and bullruns since Jan 2021. The price action, which had been suppressed through the entire year, has just bounced off the strongest supports that exist, that is 78.6% retracement level (of the entire bullrun from $3). Furthermore, the stonk is entering Elliot Wave 3, that has to be the most intensive one in the structure. Locally, a juicy cup and handle formation has just been completed, which is set to send the price action to 170-200 range, penetrating and conquering the most important resistance zone. The local price action is further supported by 21 exponential moving average, and the futures cycle completion will also push the price hard in the next couple of trading days. All in all, lets fuk, LG!
Positions or fun
Carefully playing with FDs because fucking MMs know how to destroy calls: a little bit of 170c exp this Friday and even less 230c exp Friday next week; hmm and also FDs are for boys
123 shares bought at 48, 69, 80, 131, 177, 203, 246, 280, 221, 169, 108; directly registering shares is for real gentlemen.