Pigs Get Fat, Hogs Get Slaughtered
There are many different players in this game, all very complex with many levels similar to an onion.
Whether they are a market maker, hedge fund, quant, institution, etc they all most likely have a long and short book for their investments. The most common reason for this is taxes. The short book is usually based upon technical analysis and will be taxed as short term realized capital gains. The long book is based upon fundamental analysis and will be taxed as long term realized gains. https://www.investopedia.com/terms/c/capital_gains_tax.asp
The last few weeks has given their AI algorithms a tremendous amount of data. One of the key data points that they have learned is that, in this instance, retail will buy no matter what the price is, for now. There is an extremely high emotional involvement with this stock and they can tell this by the feedback the system has received.
There should be a third wave up in the stonk, the question is how high will it go?
You have to come to terms with the FACT that the stock market is a rigged casino, but more importantly it is a fucking DRUG and you all are the money junkies. This is a major part of the GAME. They are money junkies too but in a more controlled manner. They work similar to how a pro sports team operates. They have management meetings where the best available info is presented to the Chief investment Officer of that fund. He collaborates with his crew making decisions with large amounts of capital (hundreds of millions to billions). The retail investor are self directed individuals that are more susceptible to emotion which makes them chase after the herd.
They jacked you up with the good shit for a few weeks, giving you hit after hit after hit of that pure Moon juice, making you feel like you are in a rocketship on autopilot to the Moon! Just like any dirty gorilla pimp they get you hooked then smack yo ass down...bitch. They made you watch as they took your money dreams and beat it with a red hot wire hanger for days. We know they are the bad guys in this movie and now you want revenge; your coming back for more. You need that hit again as you feel your brain shriveling up like a grimy old rotten prune. Another whole weekend jonesin' for that money drug hit. Sure, they'll put that wire hanger back on the stove to give you that rocket sauce again...the question is how much? Will it be enough to get you back to where you need to be? Could they be crazy enough to crank it beyond 483? 600? 1000!?
I don't think so, and I don't recommend that rocket dream to anyone out there even with money that they can afford to part with. Wall St. is famous for selling you that get rich quick money dream while giving you the fix you crave. That second big hit is usually never as good as the first, but you still crave it and they know that. Then using the old hood street hustle, a dude dressed like a lady at night, lures you in and clocks you over the head behind the dumpster at Wendy's and hot rods you for everything you got. Don't get tricked!
https://www.investopedia.com/articles/technical/111401.asp
First, it has to run through 100 - 112, then test and break 150 - 158. There wont be much resistance if it can break through 158 then it should be testing 212 - 222 area in no time judging by the way this stonk moves. This should be the top of the third wave up.
If you see big volume come in at any point, knocking the price back and letting it rise over and over not allowing it to break out and run over any resistance level; that means its time to take your profits and hit the bid to get the fuk outta there or risk having "diamond hands" holding a leaky sack of stinky shit while your wife packs her suitcase and the kids to go stay at her mother's house "just for the weekend".
You may only have one or two days once it starts to be a hero and print a winning ticket, they do not give you much time to make a decision while your high on their Moon Rocks. Those that hold get the mental red hot wire hanger beating again. This time it goes even lower making you puke your guts out in the toilet with a fever as you rest your hot face on the cold dirty tile floor.
The fourth wave down, up, and down could go to 60-40, then bounce up to 100 area then down to 40-20 as it trickles off into the sunset. This will leave countless retailers holding shitbags for the long term. I'm not saying it's a bad stonk and we like the stonk but not at these levels for a long term investment. Its clear the big players don't either this is why it fell fast and hard on little volume. The smart money is not going to step in at absurd prices. They don't try and catch falling knives, they drop them on you.
Based on the options open interest for Feb (including weeklys) they would like it to close around the 40-60 range every Friday until Feb expiration. I would expect it to pop up and then get shorted hard into this Friday, then do the same the next week.
I wouldn't be surprised if it had a gap up this coming Monday 2/7/21 just to get everybody all hyped up on the rocket juice again.
You better believe they are taking rips up and down this bitch while selling you OTM options that they will make sure expire worthless.
You can h8te on this post all you want if you're a GME fanboy. I like and play video games just as much as the next person and I bought many titles at GME. I am just trying to give you guys and girls a glimpse into how the pro's play major league ball. If you want to step out onto the field against the Wall St. gang be ready because NOW they are going to put an Ace out on the mound and hes' got Vaseline, sand paper, pine tar, and everything else up his sleeve.
BTW they own all the umpires too. Just cuz you think you got a grand slam in the first inning while their minor league tryout was caught sleepin' on the mound doesn't mean come second inning they are going to let you crack another one over the fence again. Don't fuckin' cry when the ACE sits your ass down in three pitches cuz you were dreaming of rocketships and drinking moon juice. That's on you.
Be smart, don't be a HOG, print a Winning ticket!!
Take Care,
DISCLAIMER: This is in no way intended as financial advice. I do not advocate anyone take action in response to this writing. This is a fictional post based on how I might play it. I do own the Stonk. Ask your financial professional if shit like this is right for you.
For more content like this please follow me and join Secrets_of_WallSt
submitted by WallSt_Sklz to Secrets_of_WallSt [link] [comments] Pigs Get Fat, Hogs Get Slaughtered
There are many different players in this game, all very complex with many levels similar to an onion.
Whether they are a market maker, hedge fund, quant, institution, etc they all most likely have a long and short book for their investments. The most common reason for this is taxes. The short book is usually based upon technical analysis and will be taxed as short term realized capital gains. The long book is based upon fundamental analysis and will be taxed as long term realized gains. https://www.investopedia.com/terms/c/capital_gains_tax.asp
The U.S. capital gains tax only applies to profits from the sale of assets held for more than a year, referred to as "long term capital gains." The rates are 0%, 15%, or 20%, depending on your tax bracket. Short-term capital gains tax applies to assets held for a year or less, and are taxed as ordinary income.I'll stick with the short term for this piece and what may come next for the price of GME.
The last few weeks has given their AI algorithms a tremendous amount of data. One of the key data points that they have learned is that, in this instance, retail will buy no matter what the price is, for now. There is an extremely high emotional involvement with this stock and they can tell this by the feedback the system has received.
There should be a third wave up in the stonk, the question is how high will it go?
You have to come to terms with the FACT that the stock market is a rigged casino, but more importantly it is a fucking DRUG and you all are the money junkies. This is a major part of the GAME. They are money junkies too but in a more controlled manner. They work similar to how a pro sports team operates. They have management meetings where the best available info is presented to the Chief investment Officer of that fund. He collaborates with his crew making decisions with large amounts of capital (hundreds of millions to billions). The retail investor are self directed individuals that are more susceptible to emotion which makes them chase after the herd.
They jacked you up with the good shit for a few weeks, giving you hit after hit after hit of that pure Moon juice, making you feel like you are in a rocketship on autopilot to the Moon! Just like any dirty gorilla pimp they get you hooked then smack yo ass down...bitch. They made you watch as they took your money dreams and beat it with a red hot wire hanger for days. We know they are the bad guys in this movie and now you want revenge; your coming back for more. You need that hit again as you feel your brain shriveling up like a grimy old rotten prune. Another whole weekend jonesin' for that money drug hit. Sure, they'll put that wire hanger back on the stove to give you that rocket sauce again...the question is how much? Will it be enough to get you back to where you need to be? Could they be crazy enough to crank it beyond 483? 600? 1000!?
I don't think so, and I don't recommend that rocket dream to anyone out there even with money that they can afford to part with. Wall St. is famous for selling you that get rich quick money dream while giving you the fix you crave. That second big hit is usually never as good as the first, but you still crave it and they know that. Then using the old hood street hustle, a dude dressed like a lady at night, lures you in and clocks you over the head behind the dumpster at Wendy's and hot rods you for everything you got. Don't get tricked!
Elliott Wave Theory
They will use this against you almost every time.Ralph Nelson Elliott developed the Elliott Wave Theory in the 1930s.1 Elliott believed that stock markets, generally thought to behave in a somewhat random and chaotic manner, in fact, traded in repetitive patterns.Market psychology shows up on charts.
Elliott proposed that financial price trends result from investors' predominant psychology. He found that swings in mass psychology always showed up in the same recurring fractal patterns, or "waves," in financial markets.I hope this can help bring some clarity to the situation. Its not the end all be all by any means, just another piece of the puzzle.
https://www.investopedia.com/articles/technical/111401.asp
Short Term Stonk Prediction
There should be a third wave up in a downward correction pattern. It looks like it has been accumulating and put in a quick bottom last week for the next run up. It looks like it can easily whipsaw back up to 212 - 222 and fill the previous gap down from Mon into Tues.First, it has to run through 100 - 112, then test and break 150 - 158. There wont be much resistance if it can break through 158 then it should be testing 212 - 222 area in no time judging by the way this stonk moves. This should be the top of the third wave up.
If you see big volume come in at any point, knocking the price back and letting it rise over and over not allowing it to break out and run over any resistance level; that means its time to take your profits and hit the bid to get the fuk outta there or risk having "diamond hands" holding a leaky sack of stinky shit while your wife packs her suitcase and the kids to go stay at her mother's house "just for the weekend".
You may only have one or two days once it starts to be a hero and print a winning ticket, they do not give you much time to make a decision while your high on their Moon Rocks. Those that hold get the mental red hot wire hanger beating again. This time it goes even lower making you puke your guts out in the toilet with a fever as you rest your hot face on the cold dirty tile floor.
The fourth wave down, up, and down could go to 60-40, then bounce up to 100 area then down to 40-20 as it trickles off into the sunset. This will leave countless retailers holding shitbags for the long term. I'm not saying it's a bad stonk and we like the stonk but not at these levels for a long term investment. Its clear the big players don't either this is why it fell fast and hard on little volume. The smart money is not going to step in at absurd prices. They don't try and catch falling knives, they drop them on you.
Based on the options open interest for Feb (including weeklys) they would like it to close around the 40-60 range every Friday until Feb expiration. I would expect it to pop up and then get shorted hard into this Friday, then do the same the next week.
I wouldn't be surprised if it had a gap up this coming Monday 2/7/21 just to get everybody all hyped up on the rocket juice again.
You better believe they are taking rips up and down this bitch while selling you OTM options that they will make sure expire worthless.
Conclusion
Fundamentally GME is a turnaround play and that usually takes some years to make happen with the size of a company like this. They have a lot of brick and mortar to pear down over the years in their transition to digital. They should have followed the Gamefly or Steam model a long time ago. Then again, its very difficult to pivot a large company especially when they are heavily invested in physical locations as their primary revenue stream. It may not be too late, they already have decades long relationships with product distributors, they just have to build their online portal out better and cheaper than their competitors.You can h8te on this post all you want if you're a GME fanboy. I like and play video games just as much as the next person and I bought many titles at GME. I am just trying to give you guys and girls a glimpse into how the pro's play major league ball. If you want to step out onto the field against the Wall St. gang be ready because NOW they are going to put an Ace out on the mound and hes' got Vaseline, sand paper, pine tar, and everything else up his sleeve.
BTW they own all the umpires too. Just cuz you think you got a grand slam in the first inning while their minor league tryout was caught sleepin' on the mound doesn't mean come second inning they are going to let you crack another one over the fence again. Don't fuckin' cry when the ACE sits your ass down in three pitches cuz you were dreaming of rocketships and drinking moon juice. That's on you.
Be smart, don't be a HOG, print a Winning ticket!!
Take Care,
DISCLAIMER: This is in no way intended as financial advice. I do not advocate anyone take action in response to this writing. This is a fictional post based on how I might play it. I do own the Stonk. Ask your financial professional if shit like this is right for you.
For more content like this please follow me and join Secrets_of_WallSt
