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Exactly what is happening?

Here's a list and I am continuing to update what is going on with the short squeeze war for this week. I know it is expansive, but I want to give you the high level overview of the timeline so you can make informed decisions on the stock market right now.

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Make sure to tell me what I missed, give me links and dates on when it happened so I can add this into the history books for generations to come!


The very beginning of the GME short squeeze:

It all started a few months before when Ryan Cohen the CEO of a successful ecommerce pet company named Chewy

September 14th was announced to hold 9% of shares in Gamestop. Speculation increased that Cohen would turn the company around and the share price rose in August from just $5 and rose steadily to $20 a share by the end of December.


October 16th GME announced earnings and it reported a negative earnings of -.53 EPS

There business is shown to be in decline and in desperate need of capturing market share.

November 16th Ryan Cohen who now owned 9% sent this scathing letter to the board of GME about what needed to be done or they would fail as a company. Its actually a really interesting read and insight into what the Gamestop could do in the future. Ryan even goes out to say that the market for gaming has grown 2.5x but Gamestop has failed and not grown at all.

November 30th At this point, a few Reddit users on r/wallstreetbets had been posting their gains. One notable character of this story is u/DeepFuckingValue . He had made over 1 Million dollars from starting out with buying call options and holding them. As he posted, his popularity grew among the subbreddit where people go to look at option plays and fantastic commentary on option trading gains and losses.

This was the first mention I could find of a true squeeze of the century. Gamestop had started to get a following of r/wallstreetbet users learning that this stock could be in an "inverse bubble" and had so much short interest that it could be a massive upswing in price. They also speak a lot of positives for the company. They actually call the top of where GME price could go: $420 a share. Here is the article

December The price stays steady while more and more users are starting to realize how big this GME play can be. Reddit Users continue posting analysis and research into January


January 11th Ryan Cohen gets 3 seats to add to the Gamestop board

January 13th GME stock price moves up on this news from $20 a share to $40 a share.

This now gains a lot of attention in the r/wallstreetbets forum and starts to grab eyes from the media.

January 14th - 21st Price stays close to $40 but more hype builds

January 22nd GME increases to around $70 a share

January 23rd and 24th The weekend establishes some time for Wallstreetbets to gain media attention, Jim Cramer starts pumping the stock "We like the stock" and multiple media figures start talking about the short squeeze. This grabs alot of attention.

Short squeeze week begins

Monday January 25th arrives The share price of GME is pushed passed $89 in the morning.

Then rises to $133, the stock is halted on the way up by the nasdaq. It was halted more than 4 times in one day. It falls back to $90 before the market closed. This brings other highly shorted stocks to attention as well. You could see BB,AMC and other highly shorted stocks start to rise in value. News came out that Hedge funds were going to have to declare bankruptcy after allegedly illegally shorting companies.

Tuesday January 26th GME is the hottest topic on CNBC, many media members we giving backlash and saying that the redditors were organizing and manipulating the market. However, many people disagreed.CEO Elon Musk sent out a tweet " GameStonks" and linked to r/wallstreetbets on reddit. This was the when the shares soared to 300+ a share afterhours.


Here's a one on one video with Jim Cramer on his thoughts


Wednesday January 27th - THE Reckoning

Many highly respected media figures entered into the scene defending what the retail investors were doing. Before this, Wallstreetbets was defined by the media as doing bad things and hurting hedge funds.

Here are a few excerpts that stood out:

Marc Cuban

Chamath Palihapitiya - You have to listen to this one, it really shows the picture of what is going on and why this price explosion is not just a normal pump and dump bubble. There is meaning behind what is going on.

Micheal Burry Laid the foundation for the investing frenzy but steps back and says its getting out of hand

Alexandria Ocasio Cortez - Tweeted "Gotta admit it’s really something to see Wall Streeters with a long history of treating our economy as a casino complain about a message board of posters also treating the market as a casino"


The price of GME stood around $330 for most of the day.


After hours the price dropped briefly to $228 and then rocketed back to $290


Most brokerages halted buying any shares or options contracts for GME and AMC which has also received a ton of interest and rocketed over 230% in price.

TD Ameritrade and Robinhood halted trading on these companies.

HERE is my bubble prediction I posted for this day

Thursday January 28th

The price went to over $450 a share in the premarket!

As of writing it is $375, many people are still holding their shares that they bought.


In the past few days the narrative of Wallstreetbets has become being the heroes that are trying to push back on hedge funds and institutions.



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Thanks and I hope this helps in your investing journey, let me know in the comments if I missed anything.


Thanks,

Brad Mitchell

Optifinancialnews.com



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