As if it were the son of Daedalus, WallStreetBets, the subforum of Reddit that has put the financial markets in check, has flown close to the sun. Too close. GameStop It has lost almost all the ground it has gained since its meteoric rise, and there are still many investors 'caught' in the middle of the smoking crater. Is it time to sell or is a rebound brewing?
"GameStop is facing crazy volatility in the coming weeks and even months, that is, movements of between 50% and 100% in both directions," he warns Jani Ziedins, blog author Cracked Market.
"At this point, a 50% bounce 'only' would take us back to $ 75, maybe even $ 100 or $ 125, but waiting for a higher number is daydreaming," he adds.
What should be the next play of the 'caught' in GameStop? Ziedins recommends "for all those who still have some money in the market, there is no reason to stay until the end, so make money, learn the lesson and come back better prepared next time."
In specialized American media, such as MarketWatch, abounds before the return to hell of GameStop an attitude that moves between relief and euphoria unleashed after several days of tension. Also paternalism. Of the latter we have as an example a publication by Steve Goldstein, which echoes the inexperience and youth of investors 'caught' in the value, accompanying his spiel with the theme of Frank Sinatra, That's Life ', which is the equivalent of 'It's the market, friend' of the Americans.
Goldstein echoes a study by Carfidy, a firm that collects consumer data, according to which 44% of those who have put money into GameStop had only 12 months or less of trading experience. Another 25% had just one or two years of experience. What he does not mention is the hard core of a class struggle movement that was born with a single objective: beat the 'rich' at their own game.
"THIS IS NOT MARKET"
From a technical point of view, the analyst of ForexNews.online, J.M. Rodriguez, states that by GameStop "You can't say anything, just like you couldn't say when you went up". Since January 13, the date on which it began its particular climb, it has accumulated a 2,000% rally, pulverizing its previous all-time highs located at $ 67 and registered back in 2007.
"This is not a market," Rodríguez sentenced when referring to the artificial rises of GameStop, which now "falls with the same violent verticality with which it rose and returns to the origin of the movement." Regarding the possibility of a rebound, he makes it clear that "of course there may be some important, but you have to have a lot of skill and be very fast."