Mike “Mish” Shedlock's
Sitka Pacific Capital Management,Llc
Short Squeeze In Reverse
Yesterday I asked GameStop Plunged 30% Today, Is the Short Squeeze Over?
This was my answer:
Squeeze Likely Over
My guess is the squeeze is over. Hedge funds have covered their shorts. And we have a three surge stage that frequently marks tops in short squeezes.
If my thesis is correct, GameStop will go back where it came from. The market makers will pull bids as they did today.
Today offers solid confirmation. People who had huge gains need to preserve them before they are gone.
GameStop fell all the way to $74 from a short squeeze high on January 28 of $483.00. That's a 4-day intraday high to low decline of 84.7%.
The hedge funds who covered at $483 are really smarting.
Flashback January 30
Let's flash back to my January 30 post Naked Shorting is Illegal: So How the Hell was GameStop 140% Short?
Movie Coming Up
The book on the World's Biggest Casino is already out . I confidently predict the movie is coming up.
Two main characters are ready identified. Vlad Tenev the founder/CEO of Robinhood and DeepF&ckingValue the 30 year old engineer in Boston on the WallStreetBets side.
The CEO and the CIO (the villains) at the Melvin and Citadel hedge funds will be part of the main cast members.
Those who produced “The Big Short” will handle this one the same way.
Movie in the Works
Yesterday, Quartz reported the GameStop Saga is Already Headed to Hollywood.
Following a bidding war, MGM acquired the rights to adapt Ben Mezrich’s GameStop book proposal, The Antisocial Network, Deadline reported. Mezrich previously wrote a book about Facebook’s founding, The Accidental Billionaires, which became the Oscar-winning 2010 film The Social Network. Early Facebook co-founders Cameron and Tyler Winklevoss, who were portrayed in The Social Network by actor Armie Hammer, will executive-produce the film based on Mezrich’s as-yet-unwritten book.
Buying the movie rights to a book proposal—not an actual book—is unusual, but it underscores how ready-made the GameStop saga is for Hollywood. It’s also further evidence of how quickly the film industry needs to move in order to secure potentially lucrative intellectual property nowadays.
That was surprisingly fast.
This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.
Recommended Content
Editors’ Picks
EUR/USD drops to near 1.0850, further support at nine-day EMA
EUR/USD continues to lose ground, trading around 1.0860 during the Asian hours on Friday. From a technical perspective on a daily chart analysis indicates a sideways trend for the pair as it continues to lie within the symmetrical triangle.
GBP/USD posts modest gains above 1.2650, focus on the Fedspeak
The GBP/USD pair posts modest gains near 1.2670 during the Asian session on Friday. Meanwhile, the USD Index recovers some lost ground after retracing to multi-week lows near 104.00 in the previous session.
Gold price gains ground, with Fed speakers in focus
The Gold price trades with a positive bias on Friday. The bullish move of precious metals in the previous sessions was bolstered by the softer-than-expected US inflation data in April, which triggered hope for rate cuts from the US Fed.
LINK price jumps 10% as Chainlink races toward tokenization of funds
Chainlink price has remained range-bound for a while, stuck between the $16.00 roadblock to the upside and $13.08 to the downside. However, in light of recent revelations, the token may have further upside potential.
Fed speak tempers rate cut expectations
The biggest takeaway into Friday is the latest round of Fed speak. These Fed officials reiterated their stance rates should be kept restrictive for a longer period of time until there is more clear evidence inflation is heading back towards the 2% target.