GME Gamestop Made Huge Gains Today, But It’s Still Not A Buy Unless
Earlier today, May 13, 2024, Gamestop’s stock ticker symbol GME made a crazy gain. Actually, it did a gap up in the overnight hours from Friday’s close of $17.40 per share to open up at $26.34. From there, it proceeded to rally all the way up to $38.20 before the big boy shorts were able to knock the price back down to as low as 24.77. Then, the buyers were able to rally it back up into a trading range of between $32 and $29 dollars per share, and it closed at $30.45.
According to a couple of sources, it was due to Roaring Kitty aka Keith Gill serving up a post on X formerly known as Twitter for the first time since June 2021. His post was a meme of a video gamer leaning forward and appearing to take the game quite seriously. Roaring Kitty was one of the major people who promoted the crazy rally of the GME stock during the pandemic. His new post reportedly received over 81,000 likes and 9,000 comments.
The big question is GME stock now a buy? The easy answer to that is a big fat No in my opinion unless, and this is a big unless. Unless you’re a highly skilled daytrader with good technical analysis, or if you are someone who has some crazy insider information that almost guarantees that you know which direction this stock will go.
GME’s stock should not be looked at as any long term investment or not even a swing trade. However, I think it could be one hell of a daytrade where you pay close attention to the buying and selling levels, switch-ups in hourly trends and close out your positions in the same day or most likely the same hour.
I would never hold this stock overnight for a swing trade or any kind of long term investment. The buying pressure is pretty strong right now, but if it drops off even a little bit, the big guys who are doing the shorting of this stock will knock the price right back down into the teens where it was trading during Friday’s close. The big guys like the banks and institutions have enough money to really move the stock. So, if they want to short it, I wouldn’t try to go against them.
There’s also the danger of the gap-ups or gap-downs in overnight trading that could cause problems depending on which side of the trade you’re on. If you’re going long on this stock, a gap down could be devastating. If you’re going short, a gap-up could be devastating.
I think this stock is just too unpredictable to be seen as anything other than a really short term daytrade where you can really monitor the buying and selling pressure and possibly get in and out of one of the many short trends that occur during intraday trading hours. That’s just my humble opinion. I know you will do what you want anyways. I just thought I would throw a bit of caution your way. Good luck.
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