Today was intentionally a flat day to make short sellers bleed their reserve stock giving them less ammo during the gamma squeeze. Strap in for tomorrow / Monday! 🚀🚀🚀
Hello again my fellow apes🦍🦍🦍!
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I still know nothing, I can't do math good. PLEASE don't listen to me! Obligatory 🚀🚀🚀
TLDR: Today was intentionally a flat day to make short sellers bleed their reserve stock so they have less when the real gamma squeeze happens in the next day or two. Strap in for the ride 🚀🚀🚀🚀🚀
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Today was an interesting day!
It started off with a surgical strike to get on the SSR list again for tomorrow, then bringing the stock back up within 15 minutes to the day's open price!
After that, it just seemed like a boring day, right? WRONG!
All of today's ups and downs were very well calculated to ensure the stock was never overbought, but continued to force those betting against the stock to bleed their reserve shares without letting the price go too low to let them buy more at a discount (I mean look at that PERFECT VWAP line [purple line].
A reminder, when a stock is on the SSR list, it can only be shorted on the upticks (i.e., when the stock is increasing in value). This does not mean you cannot sell actual stock that you own, but that means you have to actually own stock, not just borrow someone else's.
This means, that if an institution wants to deflate the price, they have to already own shares and then sell them. Those betting against the stock would already own a lot of stock for this exact purpose (probably purchased when it was sub $100), with the hopes that they can keep the price down until they can short it again the next day. However that plan went down the drain once GME hit the SSR limit as they need to make those shares last TWO days.
When you look at the data below, you can see that GME never goes above 70 on the RSI band (Click Here to learn about RSI), meaning the stock was never overbought. Instead it just slowly rises to the 70 and then eases off (I'm sure a very expensive program does this).
If it went too high, there is a risk it could rebound and drop the price, allowing short sellers to buy up cheap shares to refill their supply. GME hit the 70 mark 6 times today, but it only hit the 30 mark three, (ie oversold), since short sellers were just slowly selling shares as needed to keep the price flat and trying to not exhaust their supply.
The only time it went outside this band was during the last 5 min when they tried to bring down the price, but you can see that corrected very quickly before the day ended, and it went right up to $260 the second the market closed!
What I believe happened today was institutions bleeding dry the short sellers of their reserve shares so that tomorrow they will have a reduced ability to stop the rally. Think of this as a Zergling rush before you storm the base.
---------- So what will happen tomorrow?
I think the same institution that got GME onto the SSR list today will try to do it again. They will get the stock down in premarket again and very quickly hit the 10% SSR. This would mean 3 full days of no shorting.
If this happens, it could be another 'slow day' of letting the shorts bleed the rest of their reserve stock, with probably the first push in the last hour or two to get as many of the options in the money before the market closes.
---------- TLDR
Today was intentionally a flat day to make short sellers bleed their reserve stock so they have less when the real gamma squeeze happens in the next day or two. Strap in for the ride 🚀🚀🚀🚀🚀
-------- Bonus! SSR Data
I noticed there was not a post that had all the times GME went on the SSR list, so i went through all the files and compiled it.
Interestingly, of all those days, yesterday was the only time the stock ended the day with a gain (+7%) and the only other time we were close to 0% was the day before we say 104% price increase the next day.
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from reddit: the front page of the internet https://ift.tt/30DdHuq
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