Live Charting for 3/24/2021, predicting the day’s price action in detail with Warden. Understanding earnings, and preparing for the wild volatility ahead. FIRESALE EDITION.

This is not financial nor investment advice. These are ideas and opinions for information purposes only.

This post will read bottom to top. It’s easier for people to refresh the page and see edits at the top

Historical support and resistance levels for reference today:

116.5, 125.5, 132.5, 141, 145, 147.5, 150, 152.5, 172, 183.5, 184.5, 187.5, 190.5, 192, 195, 197.5, 200, 209, 211.5, 214.5, 218, 226, 230, 234, 243, 250, 253, 256.5

Edit 32 6:03PM:

My fellow apes. The Bloomberg Terminal data looks good. NOTHING TO FEAR. (edit: seems most retailers and funds holding). (edit: possible longs with outdated filings: Maverick, Senvest, Morgan Stanley)

Price already rebounding AH!

Edit 31 4:01PM:

Ended around 120 for the day. Will keep you all posted on what I find out in the Bloomberg Terminal.

Edit 30 3:59PM:

You might lose for the day, but stonks go up long term ;)

Edit 29 3:44PM:

We’re net bullish now in terms of options activity. Still down for the day, but hey, you lose some and you win some. Welcome to investing!

Edit 28 3:41PM:

1 million worth of Call volume traded at the 150 strike. I’m seeing an evening out between bullish and bearish bets. Again I believe a reversal is close.

Edit 27 3:38PM:

Yes we’re down a lot today. There is a dissonance between the price and the earnings call though. Keep that in mind. Earnings suggests a P/E increase while we’re seeing a maneuver for a P/E decrease. On OptionSonar I’m seeing a flow of Calls trickling. Very interesting to me.

data courtesy of optionsonar.com

I am still holding.

Edit 26 3:34PM:

116.5 next support.

Edit 25 3:27PM:

Not a happy day for the market.

Edit 24 3:18PM:

Let’s talk about how companies are valued. A lot of e-commerce stocks trade at high Price/Earnings multiples. So like 20x for example. I believe that with the recent move into e-commerce, that will lead to analysts raising their P/E expectations and raising the price targets.

We saw recently how Jeffries increased they price target to $175 at a discounted P/E compared to other e-commerce companies. I believe that with Q1, more analysts will be able to raise their price targets as they see GameStop proving their worth as a e-commerce business.

Stock looking to find new longs. Lower than I anticipated but looks like 125.5 is the target.

Edit 23 3:15PM:

Next support at 125.5. Added to the list.

Edit 22 3:09PM:

Regarding gap fills. Gap fills occur when a discontinuity in price is “filled”.

I remember a while back there was a DD on a 140 discontinuity if I remember correctly. So we’ve filled it and it’s usually a sign that the price is ready to reverse and climb back up.

Edit 21 3:07PM:

I think much of today, we’re searching for new lows before a reversal play can happen. It’s likely 132.5 is a bounce point, but we are seeing a lack of volume. In fact it’s going down.

From a macro perspective, this sort of mirrors the last time we entered a descending channel, but it’s less artificial this time as some of the swing traders trying to play earnings are genuinely exiting their positions. Again, no immediate red flags for us.

Edit 20 2:57PM:

Edit 19 2:50PM:

We’ve completed a gap fill from a couple weeks back around 140. Usually a sign of reversal.

Edit 18 2:46PM:

Updated 140 to 141. 141 broken and stock looking to find a new support level. Somewhere between 132.5 and 141.

Edit 17 2:30PM:

Tomorrow may be a bit more interesting than today. Still low volume, price may sag to 140 levels.

Edit 16 2:27PM:

145-147.5 channel.

Edit 15 1:53PM:

I’ll pick up a couple more data points throughout the week, and on Monday’s stream, I’ll cover my thoughts on earnings as well as on new emerging macro trends. The 172 diagonal has evidently been broken and we’ll have to chart out a new path for where the stock is headed.

Edit 14 1:47PM:

(Or it can bounce if it feels like it). From a macro perspective, we have found a new floor around 141 and we’re trading mostly sideways.

Edit 13 1:44PM:

Ready to test the 141 support.

Edit 12 1:23PM:

Seems like option A from edit 8 is playing out. We may bounce on 145 or test the 141 lows.

Edit 11 1:18PM:

iBorrow rate increased today. Will have to see a couple additional data points to confirm an uptrend in fee. The fee should go up really high, even past 80% to signal the start of a squeeze.

Edit 10 1:16PM:

New supports added at 147.5. I forgot to add this earlier.

Edit 9 1:03PM:

New supports added at 145 and 150.

Edit 8 12:48PM:

I will cover everything I discussed on Andrew’s show and lots more on next Monday’s stream!

Two likely paths right now. Remember midday is a bit trickier to understand.

Edit 7 12:31PM:

Slightly overextended above 152.5 and treating it as a support now.

Edit 6 12:10PM:

Still low volume, mean reversion across VWAP.

Edit 5 10:47AM:

Consolidation between the 140-152 channel.

Edit 4 10:46AM:

I’m on AndrewMoMoney! Sorry forgot to update you guys!

https://www.youtube.com/watch?v=KIEBHyvKw4A&ab_channel=AndrewMoMoney

Edit 3 9:36AM:

Starting from today and including yesterday, I’ll have to draw a new support to track our progress. The 172 diagonal is now expired. This is not a bad thing, every support eventually gets broken.

Edit 2 9:33AM:

You know what’s great about SSR? You can easily tell when panic selling is happening by large drops in price and I’m not seeing that at market open. Much higher volume first minute candle (1 million) and people are buying!

Edit 1 9:32AM:

SSR already triggered for the day. The threshold was 163.58.

Begin Reading Here

Goooooooooooooood morning my fellow apes!

Seems today is a fire sale! Gotta buy em’ all! Wait… don’t we already own all of the float? And aren’t there more shares shorted than the number of shares that exist? Huh… I wonder if they mentioned anything about shorting on the form 10K…

Oh they did!

That’s right everybody. We now officially have confirmation of the short squeeze potential and it’s absolutely nuts. Is the company going bankrupt? No. In fact their e-commerce transition is looking like a success. Let’s thank Melvin and friends for the fire sale today!

Premarket Analysis

Three words. Fire sale incoming. I gotta go brush my teeth but I’ll be back soon. I trust you guys know how to find a juicy dip by now ;)