🧪 GME Rips... Again

Good Morning!

Today, we're unpacking the seismic shifts in meme stocks, led by GameStop's jaw-dropping rally and its implications. Plus, get exclusive access to Hayden’s Bitcoin long strategy—designed to capitalize on today's volatility.

Hungry for more? Keep reading to uncover the risks, rewards, and revolutionary strategies that could redefine your portfolio.

Let’s get into it 👇

🌡 Market Temperature Check

🌞 Nasdaq closes above 17,000 for first time as Nvidia shines

📈 GameStop Stock Soars 25% After Company Raises $933M from Share Sale

👀 Mt.Gox Transfers 107,000 Bitcoin to Single Address as Part of Repayment Plan

📈 What’s Happening Today?

Meme Stocks Are Ripping… Again

GameStop's recent move to raise a whopping $933 million through a share sale has sent its stock soaring by 25%, landing at $23.78 per share and ballooning the company's valuation to $7.3 billion. This strategic financial maneuver highlights several key points:

• Vital Statistics: The sale involved 45 million shares, demonstrating strong market confidence and investor appetite. Read more about the share sale details on TradingView.

• Strategic Intent: GameStop plans to use the raised funds for general corporate purposes, potentially including acquisitions and investments, which could significantly alter its market stance. Learn more about their strategy on Proactive Investors.

• Market Reaction: The stock's uplift reflects not just the financial boost but also the ongoing fascination and speculative interest in meme stocks, underscoring the volatile yet opportunistic nature of these investments.

The Volatility Saga

Despite a strong rally, GameStop's journey this month has been anything but smooth:

• Earnings Hiccup: The company projected a quarterly loss between $27 million to $37 million, with sales trailing expectations at $872 million to $892 million, missing Wall Street’s expectation of $1.045 billion.

• Market Sentiment: These figures disappointed investors, especially compared to the previous hype episodes driven by influencers like Roaring Kitty, whose return to the spotlight briefly revived GameStop’s stock fortunes.

Looking Forward: Opportunities & Risks

As GameStop gears up with new capital, investors should weigh both the potentials and the pitfalls:

• Growth Prospects: With fresh capital, GameStop is better positioned to innovate or expand, potentially increasing its market share and operational stability.

• Speculative Nature: The meme stock label still applies, meaning that while the stock can offer high rewards, it remains susceptible to sharp downturns based on market sentiment and external influences.

GameStop's latest financial play marks a significant moment for both the company and its investors. With its war chest replenished, the company could either chart a path to renewed relevance in the gaming and retail sectors or find itself navigating the choppy waters of speculative trading. Either way, stakeholders should stay alert to swift changes in this dynamic arena.

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👾 What Are We Trading?

Hayden’s BTC Long

Here’s the scoop from our trading whiz, Hayden, who’s just mapped out a slick BTC/USDT long position that's got our trading room buzzing. He’s banking on Bitcoin to bounce, and here’s how he’s structured the play:

• Entry Zone: Between 67,146 and 67,960

• Stop Loss: Firmly set at 65,731

• Take Profit Targets:

  • TP 1: 69,016

  • TP 2: 71,124

  • TP 3: 75,000

• Strategy Nuances:

  • Committing 2% of the portfolio with a spicy 20x leverage.

  • Plan to update the stop loss post-hitting TP 1.

  • Prepared to Dollar Cost Average (DCA) if the price dips further into our Point of Interest (POI).

The Catalyst

The buzz around Bitcoin is real! A recent Grayscale survey has the crypto community on its toes, showing that nearly half of US voters are eying crypto for their portfolios, spurred by the jitters of inflation and economic instability. The cherry on top? A surge in Bitcoin ETF approvals is amplifying crypto's clout. With both major political parties casting favorable glances at digital currencies, we're looking at a significant election issue come 2024.

Our Take

Why the bullish stance, you ask? The trading chart attached to Hayden’s analysis (see above) speaks volumes. The Exponential Moving Averages (EMAs) are giving bullish vibes, with price movements hugging the lower EMA line, signalling a potential upward bounce. The chart zones marked highlight strategic entry points and potential resistance turn support levels that are key to this play’s success.

Taking a cue from the broader economic sentiment and Hayden's technical acumen, we’re leveraging current market sentiment and technical indicators to position ourselves for a profitable ride upward.

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✍ TL;DR

• GME Stock Surge:

  • Raised $933M through share sale.

  • Sold 45M shares; price soared 25%.

  • Funds aimed at expansion and investment.

  • Current market cap: $7.3B.

  • Volatility remains as stock fluctuates.

• BTC Trading Play:

  • Hayden’s long position on BTC/USDT.

  • Entry Zone: 67,146 to 67,960.

  • Stop Loss: Set at 65,731.

  • Take Profit: Targets at 69,016, 71,124, and 75,000.

  • Strategy: 2% of portfolio, 20x leverage.

  • Prepared to adjust and average down if needed.

Stay ahead, stay informed, and most importantly, stay profitable.

‘til next time,

TradingLab