The Apes Are Back
My Plan for Trading GME and AMC
In recent market developments, AMC and GME stocks have caught the attention of traders once again. The excitement primarily stems from renewed social media activity by influential figures in the GME community. However, it’s crucial to approach these stocks with a strategic mindset, rather than succumbing to the hype of potential massive short squeezes.
Analyzing the AMC Chart
Looking at the AMC chart, it's clear that the stock has experienced significant volatility. Previously trading as high as $600, many investors who bought at these levels are still holding their positions. Each bounce in price has led to further selling from these "bag holders," contributing to the stock's continued decline. Despite a recent 100% increase, AMC's price remains far below its all-time highs, making a full recovery improbable.
The GME Parallel
GME exhibits a similar pattern to AMC. While these stocks present trading opportunities, they are not likely to repeat the explosive short squeezes seen in the past. As short-term traders, it’s essential to leverage these movements without becoming overly attached to these stocks.
Identifying New Opportunities
Rather than chasing after AMC and GME, it’s more productive to look for the next potential targets. In previous short squeeze scenarios, a variety of heavily shorted stocks experienced significant price movements. For example, stocks like Bed Bath & Beyond, BlackBerry, and Nokia saw substantial activity as traders cycled through these names.
Using tools like Trade Ideas, traders can access short float data to identify stocks with high short interest that might be primed for a squeeze. Here are a few examples:
Beyond Meat (BYND): Currently at an interesting level around $8.50, with a 41% short float. A breakout here could signify a new opportunity.
RILY: This stock shows a big breakout from a long-term base, with a 56% short float, making it a potential target
CAR: With a 10% short float and four days to cover, CAR is forming a tight base that could be promising.
Building a Game Plan
The key to success in these scenarios is preparation. By using tools like Trade Ideas, traders can build a list of potential targets and develop a game plan. This proactive approach allows for informed decision-making, rather than reacting to past moves.
For those looking to stay ahead of the curve, it’s advisable to sign up for updates and resources that provide the latest market insights and trading strategies. Visit statsrading.com and join the email list to stay informed and ready for the next trading opportunity.