I can't believe I'm doing this - Long GME at 27.47

kemarin dulu

I feel icky and dirty doing this because I hate everything about meme stocks. But the truth is, it is the best chart available right now. Everything else that is on sale according to my algo either has a chart that looks like the inside of a dirty diaper, has too little liquidity, or it's in an area I'm already exposed / overexposed to (shipping is on sale across the board). I can't remember a time when so little of any quality has been on sale. It makes me a little worried, actually.

I'd have used FRO for this idea, but I feel like it's a conflict of interest since I'm already in it (I have been for a while) and I am SOLIDLY in the red on it. That said, if meme stocks aren't your thing and you think oil is gonna rally any time soon, it's currently paying an 11% dividend for you to wait for it to turn around. Tankers are notorious for frequent, large and unexpected dividend cuts, so buyer beware on that.

Anyway, back to the meme stock that started it all. It's been on a typically ridiculous bull run, going from 20 to 34 in 2 months for absolutely no good reason. Now, it's pulling back and all the GME fanboys are wailing and gnashing their teeth and giving up hope, which is usually a bullish indicator in and of itself for a short term rally. They all start buying puts and then get squeezed out when it turns around.

Besides its uptrend, it did respect support from the most recent Dec 3 low and formed a hammer candle, both bullish signs. But in the end it's a meme stock and meme stocks can do just about anything any time. Unless Roaring Kitty dies or gets arrested, a huge nonsensical pop in this one is always possible, too.

Historically, my algo has been just as good on this stock as others (728-4 the 4 being in this past week so far), though it doesn't pay off as well as you'd expect, but I just hate it so much that it's hard for me to trade - especially right after a 75% run up. Up until the recent correction/fanboy panic, it had actually been producing really good, fast paying trade signals this year.

It's been on my algo's buy list for several days now, and I've bought nothing rather than GME, but the price action today gave me a little hope that the worst MAY be over, short term anyway. Plus it has already pulled back 20% so my patience/resistance is getting me in at a better relative price than most of my buys do. But still...EW. Hopefully I can be out of this with a profit tomorrow and never look back.

So as I hang my head in shame, as a matter of professionalism and good conscience, I can't recommend that anyone follow me on this trade. No sense dragging any of you through the muck and mire of the original meme stock. Keep your hands and your conscience clean, my friends...but if you must, be careful. Use protection and take a shower afterward.

Per my usual strategy, I'll add to my position at the close on any day it still rates as a “buy” and I will use FPC (first profitable close) to exit any lot on the day it closes at any profit.

As always - this is intended as "edutainment" and my perspective on what I am or would be doing, not a recommendation for you to buy or sell. Act accordingly and invest at your own risk. DYOR and only make investments that make good financial sense for you in your current situation.

kemarin dulu

Trading ditutup: target tercapai

Closed at 27.63 thanks to a last few minutes rally. I almost sold when it was up 1.9% this morning but I had to follow my %@#! rules. Anyway, it was a 1 day trade as I had hoped, a +0.58% gain in 1 trading day. Good work if you can get it, but now I have to go scrub this one out from under my fingernails and take some Ivermectin. OK the last part was just a joke. Don't take de-worming pills (except if you have internal worm parasites and a doctor prescribed them).

kemarin dulu

Catatan

Trade summary for my records

Wins 1
Losses 0

Avg gain per lot = +0.58%
Avg holding period/lot = 1 day
Avg gain/lot/day = +0.58%
Annualized return = 0.58% x252 = +146%