A few other beaten-down, Redditor-controlled stocks aren't faring any better than GameStop.
But there's still money on the table here, so Chris recently found a "back door" trade for a fraction of the cost and risk of coming anywhere near these "radioactive" stocks and options… .
by Tom Gentile
Unless you've been camping on Mt. Everest this week, you've heard the deal with GameStop.
The company had been on deathwatch since 2019, and it didn't do as well as other pandemic-era "comebacks"… until the Internet got hold of it. The price action has been just absolutely bananas over the past week or so, as momentum has gathered. In the five minutes since I started to type this, the price has yo-yoed in a $50 range.
GameStop has been a short squeeze of massive proportions, but as of Wednesday, the two biggest short positions, run by Melvin Capital and Citron Research, have been covered and closed. Finito. Andrew Left, the CEO of Citron – which really likes to short stocks – said his traders had covered their short at $90 and taken a 100% loss.
Without the big shorts, there's just no mechanical reason for this rally to continue. It's like a car with the gas light on – you might make it a couple more miles, but one way or another, you're stopping. It could be a matter of hours before those Internet-based investors realize they've bought big into a company that, for all the hype of the past few days, is still a really troubled operation on deathwatch.
Here's the thing, though… GameStop is only the biggest, most famous of these stories right now. Reddit, TikTok, and other social media-based investors have targeted other big Wall Street shorts out there.
I've made a list I'll share with you in a second, and I'll tell you how to play them.
Like I said the other day, cooler, calmer heads have a chance to sneak in the back door, safely pocket some gains, and get out again before anyone realizes what's happened… Full Story
GameStop Corp.
(NYSE: GME) shares are on a wild ride, rocketing over 1,500% higher in the last month.
One of the main reasons behind this incredible story is something called a "gamma squeeze." Many traders are hearing about it for the first time, so we're doing a deep dive on what it means and why it's pushed the stock so high.
by David Zeiler
You can hardly blame a crypto investor for asking “Should I buy Dogecoin right now?” The Doge cryptocurrency rocketed more than 900% at one point this week.
Investors on Reddit are trying to push it to $1 – a far cry from where it is now at about four cents.
But investors need to understand what’s really going on here.
Before you buy any Dogecoin, you must read this…
So far, 2021 is already shaping up to be great for traders.
Two days after the Nasdaq and S&P 500 reach all-time highs, the bears ravaged the market for its biggest loss in three months on Wednesday.
Short-sellers are getting crushed and even some the big tech leaders – like Apple Inc.
(NASDAQ: AAPL) and Tesla Inc.
(NASDAQ: TSLA) – are in play with huge moves higher and lower.
In other words, volatility is back and that makes this a great market for options traders.
Not only that, but earnings season is here and that is usually a major catalyst for stocks.
One of the themes Money Morning's Quantitative Specialist Chris Johnson has identified for this season is the rebuilding of America.
.
And nothing supports that effort like the raw materials industry...
It's not much of an exaggeration to say that everyone knows that Amazon.com Inc. (NASDAQ: AMZN) is a true juggernaut.
From its humble beginnings as an online bookseller, it now commands a retail, cloud, logistics and content empire that many say single-handedly put shopping malls out of business.
That means Amazon isn't just one of the biggest companies in the world, it's also its biggest disrupter.
Legacy companies trying to compete with Amazon are living on borrowed time.
Here are three that are already at risk...
The Dow Jones Industrial Average will go flat as investors prepare for a rate decision from the Federal Reserve.
Markets largely anticipate that the U.S. central bank will leave interest rates untouched during the final FOMC meeting of the year.
The Fed had slashed interest rates during its three previous meetings to provide support for the U.S. economy.
The Dow Jones today is ticking higher as investors remain optimistic the United States and China will find a resolution at next month's meeting.
Meanwhile, I'm watching oil and U.S. bond prices going into the second half of the week.
Read on to see how this is moving the Dow Jones Industrial Average.
The Dow Jones today will go on a tear with the U.S. and China closing in on a trade deal.
The deal will end more than a year of uncertainty for the global markets.
This Wednesday morning, they enter the final stages of their talks.
More on the DJIA impact below...
The Dow Jones Industrial Average fell over 370 point in premarket trading after President Donald Trump threatened to impose an addition $200 billion in tariffs on Chinese goods.
