Are you a short squeeze raider? Here’s how those squeezes typically work out. Check out $BB $AMC and $GME (June 03, 2021)
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I want to look at BlackBerry ( NYSE: BB ) today ). BlackBerry ( NYSE: BB ) is one of those stocks that the wallstreetbets, subreddit gang targeted to move higher and squeeze the shorts, which personally, I think is funny as hell and really, really profitable too. You can see what they did, you guys know the story here.
You can see what they did with GameStop ( NYSE: GME ). Alright, great, let’s start here and then we will get back to BlackBerry ( NYSE: BB ).. This is what you have to understand as a trader. This looks really awesome; it looks really awesome but you will notice here the stock did this for quite a while, right?
So this is the way I would look at it, this was the money-making phase. This was the money-losing phase. This was actually the money-losing phase simply because this has run up for 1-day, popped the 2nd day and then fell back. Then, okay great, the money-making phase, again, yippee-ki-yay, but was this anything like this? Absolutely not. You can see that this is kind of converging.
The ranges are wide as heck, good lord you could straddle the Grand Canyon with the width here, they are just all over the place. So there is still a lot of money to be made, right? But as this goes on the range narrows. But what are we seeing? People are still looking back here and saying, wow, glory days, I can’t wait for GameStop ( NYSE: GME ) to go again. Guys, it never happens.
Instead, the stock will gradually go into more, and I wouldn’t say this is a money-making phase or a money-losing phase, I would say this is a money-churning phase. And I would submit this, those that are trading this here are probably the same ones who missed out on this, and missed out on this. So they are basically just competing for table scraps. Now, this could definitely run up again but I don’t know that it will, neither does anybody else.
If we look at AMC ( NYSE: AMC ) you are seeing the same deal. By the way, you see this? This wasn’t a real moneymaker here, the dang thing popped massively. And then, since that time, yes, it was great. Oh my gosh, it ran up to $60.00, $70.00 but this was a big money churning proposition too. The real money started to be made here. I didn’t see it but I sure saw it here and definitely here.
My suggestion was, if it pops out above here, which it did, buy the stock. However, I bought the stock but I got out, as it turns out, way too soon, I got out on this day, And then, sure enough, we had the next day that I felt like a genius. The following day after that I felt like a dope. Today I don’t feel like anything, I don’t care about this stock but I know that a lot of our peeps do.
In this case, look, we have seen this kind of move before, and then the stock just ran further. Today this was an inside day and so it could literally go either way. I wouldn’t touch this thing, it’s way too risky. But with that said, again, I am not saying it’s going lower I am just saying, whichever way it goes, lower or higher, it’s probably going to go there in a big way and that is not what I like to do. For you young guys or you guys with an infinite amount of money and you don’t mind putting it all on the line or a big part of it, have at it.
That leads me back to BlackBerry ( NYSE: BB ). A big massive move here, fun, totally fun. It went over 100 percent in how many trading days? In like just 6 trading days, that’s less than a week and a half, this thing has doubled in price. Today, though, this thing gapped up bigly. It gapped 23 percent, and then did what? It sold off. It tried to regain, but it didn’t make it. So I am looking at this as a stock under selling pressure.
At this point this is what I would advise you, the stock is closed at 128.00. It just closed slightly above where it closed yesterday but at one point during the day the stock was up 33 percent from the close yesterday.
Now, you tell me if that is kind of a substantial or significant reversal because I think it is. To me, it doesn’t matter so much where this stock closes in relation to the prior close. It does but the most significant thing for me is, where does it close in relation to the open? Because if a stock closes higher than the open this is an indication that there is still demand into the day, all day long into the close, that’s good demand.
If the stock closes lower, that’s an indication that demand was only in the morning where it had this big gap. And then throughout the rest of the day all of the supply overwhelmed the demand. It did not get soaked up, it just kept falling, and falling, and falling. Look, sooner or later every storm runs out of rain, but I don’t think this is done going down. So I would just suggest being careful.
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