If you would like to read anything below this point, please ensure your tinfoil hat belt is fastened and everything mentioned here is my speculative view. TLDR at the bottom.
I am 100% sure that 0% shorts were covered in the January rally (by this, I mean Big money). That price increase was only retail hype + bots + algos + ¨good¨ big money. As we know, short interest was more than 100% and covering such large positions would cause a stratospheric green candle up to only God knows what price and all orders pool would be wiped off even with ridiculous prices, such as 69420$ per share.
That did not happen and we made only until 480$.
And why would it, if Big Players know well how to influence people's psychology and have all the instruments to manipulate the market?
By that time lots of unprofessional hamsters (so called paperhands) entered GameStop on hype. As we all know, hamsters got knocked out from very volatile markets with negative P&L.
After years of working with different markets you start to notice repetitive patterns in price actions.
When I saw upward momentum on 25 February and then continuation up until 10 March, I accidentally dropped a few crayons on charts and noticed that I already saw somewhere this whole pattern that we have been watching since the start of a rally in January, except on a way smaller time frame. Guess what asset is also highly manipulated, highly speculative and volatile? Right, Bitcoin.
I believe in a thesises: ¨All possible information, positive or negative is already in the price.¨
And: ¨Technicals > Fundamentals.¨
Based on this I do believe that positive news about the 23 March earnings report already priced in the 25 February - 10 March rally.
So we do not need to assign ourselves to specific dates, as price will move eventually where it needs to move.
Back to the similar patterns (Triangle is love. Triangle is life):
Here we have 2 graphs, Bitcoin 1D and GameStop 30m.
Small recap of events in % and approximate similar price change for future $GME in BOLD
(left is BTC and right is $GME):
1: Retail hype: 550% / 900%;
2: Price plummets: -83% / -90%;
3: Zero price action;
4: Another rally to 61.8 fib level from previous high:
330% / 700% (we are here), then crash -67% / -73% (85$ per share);
5: Start of a huuuge rally: 1250% / at least 2300% (2100$ per share).
Conclusion/TLDR: Please do not worry if the price will go lower (85$ probably is the new bottom). Be contrarian. We have a similar bullish pattern on GameStop as we had on Bitcoin (2017 - 2020), but on a smaller time frame. In addition, a ridiculous short percentage probably will lead to a higher rally than Bitcoin had. Just hold these diamond hands.
Not a financial advice. Not a native English speaker.
If anyone missed my amazing and super emotional MEME, put on headphones and watch:
https://www.reddit.com/r/wallstreetbets/comments/m3gymr/warriors/
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