INSTEAD FOCUSING ON LONG-TERM
INVESTING FOR MORE ON THIS AND
THE CONTINUED ACTIVITY THAT
WE'RE SEEING AROUND GAMESTOP
FROM THE
RETAIL COMMUNITY WE'RE JOINED
BY JAKE WE APP TIK CHIEF MARKET
ANALYST
AT TRANSPIRE AND DAN EGAN
MANAGING DIRECTOR OF BEHAVIORAL
FINANCE AT BETTERMENT GUYS IT'S
GREAT TO HAVE YOU BOTH WITH ME
TODAY
SON JAKE AT TRENT SNYDER, YOU
DO A LOT OF TECHNICAL
AND NOW SAYS ONE OF THE CHARTS
TELLING YOU ABOUT THE PATH
FORWARD FOR GAME STAFF.
>> YOU KNOW AT THIS POINT IT'S
REALLY HARD TO EVEN LOOK AT THE
CHARTS IN SEE ANYTHING THAT'S
THAT SPORT TELLING THE ONLY
THING THAT YOU CAN REALLY LOOK
AT RIGHT NOW ARE FIBONACCI
EXTENSIONS AND BECAUSE AS WE
HAVEN'T SEEN PRICES LIKE THIS
IN EVER AND SO WHEN YOU'RE
LOOKING AT
THE CHART. THE ONLY PRICES YOU
CAN REALLY LOOK AT OUR THE
PREVIOUS PRICES WE SAW A COUPLE
DAYS AGO, SO WHEN
WE HIT I THINK OVER $400 ON
GAMESTOP WEEK AND THEN LOOK AT
THOSE AREAS IS POSSIBLY
RETESTING THOSE ZONES BUT
BEFORE THAT IT WAS REALLY
LOOKING AT THESE TO THE NAUGHTY
EXTENSIONS WHICH BECOME A
SELF-FULFILLING PROPHECY WHEN
EVERYBODY IS LOOKING AT THESE
ABOVE THAT THAT'S THAT GOES
RETAIL TRADERS WHO LOOK AT
TECHNICALS BUT IT ALSO GOES
FOR. THE BIGGER INSTITUTIONS
THAT ARE LOOKING AT THESE
LEVELS AS WELL.
>> AN EXTREMELY VOLATILE STOCK
AS OUR CHARTS SHOW THERE ON THE
COURSE OF THE LAST 5 DAYS AND I
WANT TO BRING YOU AND AS WELL
EXPLAIN THE BEHAVIORAL
COMPONENT BEHIND THIS WHAT IS
DRIVING SOME DAY TRADERS
PRESUMABLY DAY TRADERS ACTIVE
IN THIS RED, IT'S A GROUP TO
DRIVE UP THESE PRICES.
>> TIME AND ATTENTION SO ONE OF
THE FIRST COMPONENTS WE HAVE TO
BE A CLEAR ABOUT IS THAT
RIGHT NOW PEOPLE DON'T HAVE THE
ABILITY TO GO OUT AND INTERACT
WITH EACH OTHER WE CAN'T GO TO
BALL GAMES MOVIE OPENINGS
BARS RESTAURANTS. SO WE'RE
LOOKING FOR CONNECTION AND
ENTERTAINMENT IN OTHER PLACES
AND THE STOCK MARKET IS ONE OF
THE FEW THINGS THAT WE CAN ALL
JOIN IN ON YOU CAN PARTICIPATE
NOW THAT THERE'S 0 COST
COMMISSIONS AND YOU CAN HAVE A
SMARTPHONE IN EUROPE TO
DO IT. SO THIS IS THE PLACE
WHERE EVERYBODY'S ATTENTION IS
GOING TO THAT'S BEING
REINFORCED BY SOCIAL NETWORKS
AND MEDIA BOARDS ETC
THEY SAY THIS IS WHERE LIKE
THIS IS WHERE THE ATTENTION IS
THIS IS THE HOT INTERESTING
THING RIGHT NOW FOR A LARGE
NUMBER OF PEOPLE WHO IT WASN'T
BEFORE THAT ONE OF THE OTHER
THINGS I THINK YOU WHERE IT IS
THAT LIKE IT'S A LITTLE BIT
LIKE AN ATTENTION THING IN THAT
WE NEED NOVELTY WE
NEED EXCITEMENT. IT'S VERY EASY
TO GO FROM 30 TO 16 HAVE A 100%
RETURN THAT'S A LOT HARDER AS
THE PRICE
GOES UP. SO ALREADY WE'RE
SEEING THE SORT OF ROTATIONS
INTO OTHER STOCKS THAT ARE
SIMILAR BUT OFFER A GREATER
KIND OF ENTERTAINMENT REWARD.
>> CHRISTINE YOU'RE YOU KNOW
EXCITEMENT
VERSUS ACTUAL MONEY MAKING HER
SAY OF COURSE WE HAVE TO WAIT
TO SEE HOW THIS ALL PLAYS OUT
AT THE JAKE I WANT TO BRING YOU
IN HERE AS WELL, I MEAN
RETAIL TRADERS ACTIVELY ENTRY
MISS MARKET AS THE PANDEMIC ON
HAS HIT SINCE MARCH OF
LAST YEAR. THIS CHANGE THE GAME
GOING FORWARD KNOWING THAT SO
MUCH MORE ACTIVITY IS NOW
HAPPENING IN THEM MARKET WITH
RECORDED A TRADING VOLUME SET
THIS WEEK.
>> I THINK IT CHANGES THE GAME
IN A LOT OF WAYS I MEAN YOU'VE
ALREADY SEEN CITRON PRETTY MUCH
SAYING THAT THEY'RE NOT GOING
TO BE PUTTING SHORT REPORTS OUT
ANYMORE AND I DON'T REALLY
BLAME THEM BECAUSE THAT'S
ESSENTIALLY SHOWING YOUR HAND
AND POKER IF YOU'RE SHOWING YOU
KNOW, I'M ON LEVERAGE AND I'M
SHORTING
THIS POSITION AND YOU HAVE A
LOT OF PEOPLE TRYING TO TAKE
YOU DOWN THAT'S CHANGING THE
ENTIRE PATH. I LOVE HOW TRADING
IS HAPPENING AND HOW THESE
INSTITUTIONS OR EVEN IN TRADE
POSITIONS AND YOU KNOW IF YOU
THINK ABOUT IT IF YOU HAVE
50,000 PEOPLE THAT PUT A $1000
INTO THE MARKET THAT'S
50 BILLION DOLLARS THAT
ARE NOW SLOWING IN LIQUIDITY IN
THE MARKETS AND THAT'S
SOMETHING THAT IS REALLY JUST
BEING ABLE TO MOVE THE MARKETS
LIKE NEVER BEFORE THE ABILITY
TO EASILY GO IN AND
IN BY SOMETHING IS ALWAYS
REALLY BEEN THERE WITH ROBIN
HOOD AND THE FACT THAT ROBIN
HOOD
RESTRICTED SELLING YESTERDAY
AND THE FACT THAT THE STOCKS
STILL WENT UP TELLS ME THAT
THIS ISN'T JUST RETAIL, THIS IS
BIGGER MONEY AS WELL IF YOU'RE
RESTRICTING ALL ALL OF THIS
LIQUIDITY ON OR IF YOU'RE
ADDING LIQUIDITY ON THE MARKET
ONLY NOT ADDING THAT DEMAND
SIDE AS ROBIN HOOD IN SOME OF
THESE OTHER. BROKERS DID
YESTERDAY AND THEY'RE STILL
DEMAND COMING IN WE KNOW THAT
IT'S NOT JUST RETAIL TRADERS
PUSHING THIS THIS IS BIGGER
INSTITUTIONAL MONEY AS WELL
BECAUSE. AMC I MEAN THESE ARE
MOVING WITH THAT
THAT HELP OF THE RETAIL TRADER
YESTERDAY AND I GUESS THEY'RE
OPENING IT UP TODAY, BUT
YESTERDAY FOR SURE.
>> I THINK THAT'S A REALLY GOOD
POINTS AND WITH THE NEW
SEC HEAD ON THE WAY AND WE'LL
WAIT TO SEE WHETHER OR NOT WE
GET MORE TRANSPARENCY AS THE
AVERAGE AMERICAN ON ORDER FLOW
WHO'S ACTUALLY MAKING TRADES ON
A GIVEN BASIS OF COURSE THE
THING WITH READ IT IS THAT IT'S
ANONYMOUS AND SO WE DON'T
ACTUALLY KNOW WHO IS PUSHING
MONEY AND WHO IS
MAKING THESE COMMENTS ON THE
PARTICULAR PLATFORM ON DEBT.
DAN WHEN IT COMES TO THE
BEHAVIORAL SIDE OF THINGS
AGAIN HERE AND THE FACT THE
ROBIN HOOD MADE THIS MOVE
YESTERDAY TO SUSPEND TRADING
UPSETTING NOW MANY OF ITS
USERS. WHAT DOES THAT DO TO THE
USER DOESN'T CAUSE THEM TO TURN
AWAY TRY OTHER PLATFORMS OR DO
YOU THINK THEY KEEP COMING
BACK.
>> I DEFINITELY THINK IT HURTS
THEIR BRAND IT'S VERY HARD TO
CALL YOURSELF. ROBIN HOOD WHILE
ACTING THE EXACT OPPOSITE WAY.
I THINK THAT
MOVING FORWARD ONE OF THE
ISSUES IS THAT A LOT OF THE
BROKERAGES HAVE TO DO IT WASN'T
JUST ROBIN HOOD AND THERE ARE A
NUMBER OF OTHER ONES THAT HAVE
TO STOP
THE TRAIN. I THINK IT DOES
REMOVE THAT THEY'LL FROM A LOT
OF PEOPLE'S EYES THAT THIS IS
SERIOUS WHEN THINGS GET BAD
AND A LOT OF THESE PLAYERS ARE
GOING TO HAVE RESTRICTIONS IT
THAT YOU KNOW PREVIOUSLY MIGHT
HAVE BEEN THOUGHT OF AS GOT A
FUN OR A GAME OR NOT THAT
YOU'RE PLAYING WITH BUT THERE
ARE SOME HEART STOPS WHEN
THINGS GET SERIOUS SO I THINK
THERE'S A BIT OF
DISILLUSIONMENT ABOUT THAT THE
NEW ECONOMY OR AT LEAST THE NEW
FINANCE ECONOMY. THAT ACTUALLY
WHEN PUSH COMES TO SHOVE THE
BIG PLAYERS WILL PUSH BACK IN
VERY SPECIFIC WAYS AND THEY
HOLD A LOT OF THE
INFRASTRUCTURE.
>> AND JAKE, IT'S NOT JUST
GAMESTOP OR AMC BY THE WAY
WE'RE TALKING BED BATH AND
BEYOND
EXPRESS COM SCORE WHICH
BASICALLY SALES HEAD PHONES AND
SCREENS AMONG OTHER THINGS THAT
SOME OF THESE OTHER SMALL
COMPANIES AS WELL BEYOND MEAT
ANOTHER REALLY ANOTHER HIGHLY
SHORTED STOCK ABOUT ONE THAT
NECESSARILY HAS AND JUMPED ON
TO THIS TREND THAT DAY TRADING
JUST QUIET YET ONE OF THE
CHARTS INDICATE IN TERMS OF
OTHERS, STOCKS THAT MIGHT BE ON
THE CAR HIGHS OF GOING THE WAY
OF GAME STAFF AND AMC.
>> YES SO YOU KNOW THERE ARE
STOCKS THAT HAVE BEEN MOVED YET
THAT ARE REALLY SHOWING SOME
SHORT
INTEREST BUT AT THE END OF THE
DAY THE CHARTS ARE REALLY ONLY
GOING TO TELL YOU WHERE PRICE
COULD POTENTIALLY GO. GAMESTOP
WAS A GREAT EXAMPLE WHERE
THERE THERE WAS REALLY NOTHING
ON THE CHART THAT WOULD HAVE
TOLD US GAMESTOP IS GOING FROM
35 TO 400 WITHIN A WEEK WEEK
AND A HALF
WHATEVER WAS AND SO THIS IS
WHERE YOU KIND OF START TO SEE
PRICE DISCOVERY IN PRICE
DISCOVER 3 REALLY KICKS IN WHEN
YOU'RE NOT YOU'RE YOU'RE AT NEW
LEVELS ARE YOU'VE NEVER SEEN
THESE LEVELS ON A STOCK
SO ON THE MAIN THING THAT I
LIKE TO LOOK AT ESPECIALLY FOR
THESE STOCKS HAVEN'T REALLY
MOVED YET OR JUST SUPPLY AND
DEMAND ZONE. SO
THE U.S.. AREAS WHERE THERE'S A
LOT OF BUYERS ABOVE SO LET'S
SAY THAT THERE'S A STOCK AT $10
AND IT'S GOT A HIGH
SHORT FLOAT AND AND A COUPLE
MONTHS AGO, THERE WERE A LOT OF
PEOPLE THAT LOADED UP THAT $20
A SHARE WHEN THE PRICE GOES UP
TO $20 A SHARE.
ALL OF THOSE PEOPLE ARE NOW
BACK TO BREAK EVEN WHO ARE JUST
DEALING WITH A 50% DROP DOWN SO
THOSE TYPES OF PEOPLE ARE GOING
TO GET BACK TO
BREAK EVEN AND THEN THAT'S
WHERE YOU KIND OF GET THIS
DECIDING MOMENT IS THE STOCK
GOING CONTINUE TO GO UP
OR ARE ALL THESE PEOPLE WHO ARE
JUST GETTING BACK TO BREAK EVEN
GOING TO ADD SUPPLY ON TO THE
MARKET AND PRICES TO DROP FROM
THERE ON TOP TOP OF THAT ALL OF
THESE COMPANIES THAT ARE GOING
UP ARE IN A VERY BAD
FINANCIAL SITUATION, SO THEY'RE
GOING TO TAKE ADVANTAGE OF
BEING ABLE TO.
PUT SHARES ON THE MARKET FROM
THIS LIQUIDITY IN RAISING
CAPITAL. SO THIS ALLOWS THEM
IT'S
ALMOST LIKE IT'S ALMOST LIKE A
DIFFERENT TYPE OF BAILOUT.
IT'S LIKE THE IT'S LIKE A
BAILOUT FROM THE SHOW
SQUEEZE ALL OF THESE COMPANIES
NOW HAVE THE ABILITY TO RAISE
CAPITAL WHERE THEY WOULD HAVE
BEEN ABLE TO DO THAT BECAUSE
THE LIQUIDITY WASN'T
THERE BEFORE.
>> AND DOES IT CHANGE THEIR
BUSINESS MODELS GOING FORWARD
AND TAKE THEM ALSO THE BRING
FRIENDS DIDN'T LIKE AMC SO