Meme Stocks – Part Two – Mid May 2024
AMC and GME To The Moon?
These stocks are being manipulated and will find a common level once all the dumb money gets in. It might take a while, but the attractiveness will continue to attract until the money is exhausted. Then the new shorters will come in, after the old shorters get margin calls which will provide the last pump. Once the new shorters come in as the price stabilizes, the decent to bouyancy will happen relatively quick.
GME: GameStop Has Legs
Last route in Jan 2021, The stock shot up starting 4-Jan-21 from $5 to about $80 on 25-Jan-21 . A week later, it dropped to $15 and to about $10 the first half of Feb before jumping around March 1 to $65.
I see the volume a 10th the amount of what it was in 2021 but the drive to pay elevated prices is high in this one. I expect it to top a little less than $80 before dropping down to $20… I’m going to buy $30 puts and see what happens.
AMC: This Also Ran Is On It’s Cooldown Lap
This stock jumped and is fizzling now.
On 13-May it was a $3 stock… Then the Memesters hit it to $5 in one day. Then $10 the start of the $14. These stocks jump at the start and stay… until the next day as they are going up. AMC started today at $10 and has been declining to $7 at mid-day.
This is well below the $500+ it saw in 2021.
Let’s Enjoy The Show!
They wonder with these moves are gone – we know how they will end up in the long run.
In the meantime – enjoy the volatility!
Disclaimer – This isn’t financial advice – just my thoughts.