🧪 GME Still Roaring

Good Morning!

In this edition, we kick off with a market temperature check, bringing you the latest on key movers like Nvidia, which just joined the $3 trillion club, and the buzz around GameStop's meteoric rise - it’s still going!

Discover how my 1-on-1 mentorship can transform you into a savvy trader, and get the inside scoop on what's moving the markets, from Nonfarm Payrolls to Nvidia and GameStop’s latest shakeup.

We also dive into the crypto world with Kraken's pre-IPO fundraising and its implications. GameStop's resurgence, sparked by the legendary Roaring Kitty, is making waves again—find out what this means for your portfolio. Plus, learn why I'm shorting $EBS and the strategy behind this play.

Let’s get into it 👇

🌡 Market Temperature Check

🤝 Become a better trader with my 1-on-1 Mentorship

💹 Nvidia Stock Joins $3 Trillion Club After Dethroning Apple and Chasing Microsoft

🤷‍♂️ Nonfarm Payrolls, Nvidia, GameStop - What's Moving Markets?

🐙 Crypto Exchange Kraken Is in Talks for Pre-IPO Fund Raising Round

📰 What’s Happening Today?

GME Is Still Roaring

GameStop (GME) is back in the headlines, and this time, it's all thanks to the legendary Roaring Kitty. Keith Gill, the retail trading sensation, is about to break his nearly four-year silence with a highly anticipated YouTube live stream. Here's what you need to know.

A Sudden Surge in GameStop Shares

On Thursday, GameStop shares rocketed by 48%, adding over $3 billion to its market cap. The buzz is all about Roaring Kitty’s upcoming live stream.

• Massive Gains: GameStop stock closed at $46.55, a whopping 47.45% increase from the previous day.

• Pre-Market Action: The excitement spilled into the pre-market with shares up another 35%, pushing the price to $61.39.

• Historical Context: This surge brings GameStop's total increase to over 300% since early May, following a strategic move by Roaring Kitty that rekindled the meme stock frenzy.

Market Reactions and Trading Halts

The frenzy didn’t go unnoticed. The New York Stock Exchange had to halt GameStop trading twice due to extreme volatility.

• First Halt: The initial halt came when shares surged by 27.3%, stopping the stock at $40.18.

• Volatility: This isn’t just a random spike. The market's response highlights the massive impact retail investors can have, particularly when driven by influential figures like Roaring Kitty.

• Investor Sentiment: Reddit traders and retail investors are eagerly anticipating potential insights from the live stream, speculating on bullish signals for GameStop.

The Bigger Picture: What’s Next for GameStop?

With a market cap of $14.25 billion, GameStop is once again a hot topic on Wall Street. The upcoming live stream could be a pivotal moment for the stock, and here’s why:

• Keith Gill’s Influence: Known for his meticulous research and passionate advocacy for GameStop, Gill’s words could inspire a new wave of buying.

• Retail vs. Wall Street: This event could reignite the retail trading revolution, empowering everyday investors against institutional giants.

• Future Prospects: While the exact topics of the live stream remain a mystery, the speculation is that Gill will discuss his substantial stake in GameStop and future prospects for the company.

Keep your eyes peeled and your trading platforms ready. The retail investor revolution is far from over, and GameStop is proving once again why it’s the stock that refuses to be ignored. Get ready for an exciting ride!

📈 What I’m Trading

The Play

I’m entering a short on $EBS at $7.05.

This trade setup is based on both technical indicators and fundamental news catalysts. The stock is currently testing the $7.00-$7.05 resistance level, a key area it has failed to break through in previous attempts. The recent spike in price provides an optimal entry point for short sellers looking to capitalize on potential downside movement.

The Catalyst

Walgreens is making waves by launching its own brand of naloxone, the nasal spray used to reverse opioid overdoses. This move is a game-changer as it undercuts the name-brand Narcan from Emergent BioSolutions by more than 20%. With Walgreens' significant market presence and aggressive pricing strategy, this development poses a substantial threat to Emergent BioSolutions' market share and revenue from Narcan.

Our Take

Looking at the attached chart, it's clear that $EBS has been on a downward trend for an extended period, with occasional rebounds that fail to break previous highs. The recent surge towards $7.00 seems to be losing steam right at a historical resistance level. The news of Walgreens' cheaper naloxone adds bearish momentum, making it an opportune moment to enter a short position.

We believe this is a solid play for several reasons:

1. Technical Analysis: The chart shows a significant resistance at the $7.00-$7.05 level, which it has struggled to surpass. The current price action suggests a potential reversal from this point.

2. Fundamental Catalyst: The introduction of a cheaper alternative by a major retailer like Walgreens is likely to erode Emergent BioSolutions' market share quickly.

3. Market Sentiment: The broader market sentiment around pharmaceutical companies facing such competitive pressures tends to be negative, supporting our bearish outlook.

Don't miss out on plays like this! Join our TradingLab community to stay ahead with expert analysis and timely alerts.

🔗 Sign up today and get my calls as they happen!

✍ TL;DR

GameStop (GME) Story:

• Roaring Kitty Returns: Keith Gill, aka Roaring Kitty, is breaking his silence with a YouTube live stream.

• Massive Surge: GameStop shares skyrocketed by 48%, adding over $3 billion to its market cap.

• Pre-Market Action: Shares up another 35% in pre-market, hitting $61.39.

• Market Reactions: NYSE halted trading twice due to extreme volatility.

• Retail Investor Influence: Speculation about bullish signals from Gill's stream is high among Reddit traders and retail investors.

• Future Prospects: Anticipation around Gill discussing his stake and future prospects for GameStop.

EBS Play:

• Trade Setup: Shorting $EBS at $7.05 due to technical resistance and fundamental news.

• Technical Analysis: Stock is testing the $7.00-$7.05 resistance level, which it has failed to break through before.

• Fundamental Catalyst: Walgreens launching a cheaper naloxone alternative to Narcan, impacting Emergent BioSolutions' market share.

• Market Sentiment: Broader negative sentiment around pharmaceutical companies facing competitive pressures supports the bearish outlook.

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

‘til next time,

TradingLab