$GME; Rated E for everyone — Jackie Le' Tits — Video Wiki
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Full transcript (3,420 words) — every glorious word
0:01Hello everyone and welcome to our first GameStop video in quite some time. We've got many things to talk about. So, let's just get right into it. Now, we have spoken about GameStop a number of times cuz obviously this is our favorite trade. This is our favorite stock. And over the summertime, we saw some of the worst price action that we have ever seen on GameStop ever, ever, ever, ever, ever, ever. Now, having said that, during that terrible price action, we managed to stay above support the entire time. If we draw a fib from the low of the squeeze last year to the high, drag it across, you guys can see that we stayed above this golden pocket the entire time. Very important that we've managed to do that. Now, not only have we managed to do that, but you guys can see this lower white trend line that I've drawn here. Each of the touches on this lower trend line represents a higher low. All right? With each of those higher lows so far has come a higher high. All right. Now, beyond the fact that it looks positive that we might be starting a potential uptrend, if we go to the monthly time frame, we just turn off our indicators and all that other stuff right now. Ever since the uh earnings note offering move, we have been in a big inside monthly bar. All right. And we have finally started to at least break the body of that inside bar. Very positive. Now on the weekly time frame once again we can see that we are also in a very large weekly inside bar. The positive thing that we have done so far is what we have outlined the higher lows along this trend line. The next really positive thing that we could do would be breaking 50% of whatever that candle is from the body open to the body close. So if we draw a fib from the high of that candle open to the low of that candle close, getting above 2575 this week is going to be really important. Now, beyond that, if we draw a real Fibonacci where you're supposed to, right, from a high to a low or a low to a high, in this instance, a high to a low, if we go high to a low,
2:40you guys will see that last week we broke the 236. Very, very important. Now on a macro time frame like the daily on Friday we opened and closed above it signaling that this is a confirmed local low. A local low within this trending move. Now the question is how high can the stock retrace through this trend? And the question becomes can it break the 886 and achieve a new higher high and a breakout of this retracement and turn it into a trending move that ultimately makes a higher high. Okay. Now having said all that right this week is exceptionally important. Okay. The reason that this is so important is because every technical indicator that you guys, you and I have all been following along with is on the precipice of doing something really, really amazing. I want to start with the weekly. And I want to start with the weekly MACD. The weekly MACD is at an incredibly interesting point right now. Okay. Not only all right, have you had the histogram on the bearish side decrease, okay, but the MACD right now is exceptionally close to crossing under the center line. Now, if you guys are in the discord or have been following along with some of the things that we have been talking about in terms of the education on the MACD, when the MACD crosses the signal line below center, it is said to be bullish. When it crosses it above center, it is said to be bearish. The closer that those crosses happen to the center line, the more bullish they become. Because when the MACD goes through the center line, it typically produces a very bullish and strong move similar to what you saw right here. When the MACD went through the center line right here, all right, huge move on GME, right? Followed by a secondary wave. There was a MACD cross through the center line right here. Now, obviously, that didn't really produce very much. And then there was a center line cross right here. And once again, it did produce moves, but these last two have been really shitty. Well, why have they been shitty? When they crossed below center, they crossed way down here. And then the last one that went through the center, it also crossed way down here. But the one that's happening now,
6:02or potentially right now, is happening right there. Why is that important? Well, the last MAC D cross that happened this close to the center was last year's squeeze and that one occurred right here. Still lower than what we could potentially be have happening right now. And if we go back even further in time, the only cross on the weekly that is closer to the center line than what is happening right now potentially is the actual sneeze itself. back over here. And this is just a different time in the stock and we can't really compare that moment to what's happening right now. So if we compare all the price action post sneeze, this is potentially the closest the weekly will cross the signal line underneath the center on the MACD. This could, if we get it this week, help produce a strong move to the upside. Now, we couple this analysis with some of our other technical indicators, right? Such as our RSI. And if we look at the weekly RSI, it has poked its head above the center. Very important. Not only has it gone back above the center here, but we have not been in the bare zone since this squeeze of last year. Now, this fly that's circling around me that wants to get clapped up by the fly swatter, he is a metaphor for short sellers. Cuz if they were in control, this RSI would have touched the bare zone by now and we'd have been cooked and we'd have seen this uptrend that we've been in just be clapped out. And guess what hasn't happened? [ __ ] that bulls still have control and breaking the center line and breaking the EMA is a signal of a potential shift in the trend. And the last indicator again that I just want to talk about here on the weekly is the ADX DMI because this now while they're not Rick and Morty lips, we have the weekly breaking off in a positive direction for the DMI positive. The negative is now sloping back down. Now, I don't love that we're kind of still making uh warm coffee. I obviously want it to be hot, but the ADX is beginning to turn just a little. And if we can build more positive momentum, this can start to lead to that macro breakout that
8:48we're all hoping for. Now, I'm going to put some of these indicators down, and we're just going to talk about purely this weekly candle that has occurred. This weekly candle 10% has broken this range that we've been stuck in since the week of June 16th. Not only did it do that, but if we zoom in here, enhance enhance, you guys will see that the body of last week's candle even closed above the highest wick within this range. This is about as important a technical close that you want to see because not only did it close above the highest wick within that entire range, but we also broke that 236 that we've measured off, right? And we know how important this is. So, we've seen a break, an established break of this trend. and the weekly technical indicators are saying, "Okay, let's giddy up. Let's go." So, from a candle perspective and from an indicator perspective on the weekly, we look awesome. And if you look at the volume on the weekly, that is some of the best weekly volume that we have seen over the last year. Look, going all the way back to August. Let's let's push this all the way to July of last year. Look at this. That weekly volume is top 10 over the last year and a half year and a quarter of price action. That's a top 10 weekly volume candle. Almost top five. And on that push with that high of a close out of that range, boom, boom, boom. This is so positive. But then you get into the daily. Then you get into the daily and this is where things start to really explode. We already know, okay, about the daily RSI having broke the center last week. Well, now it's entered the bull zone. And if it can stay there rather than just instantly reject like we saw here, here. Okay. If it can stay inside, it will produce a move just like this. Well, what happened back over here? Well, let me show you. Look at the beautiful move. And we're in the bull zone right now as the weekly pokes its head through the center line. We just need continuation. And continuation might be showing itself in the form of the DMI ADX. Look at where we are now. Barring some sort of
11:58unforeseen circumstances, the DMI positive is going to stay in [ __ ] off landia. The DMI negative is going to stay in Satan's bum hole. The ADX is going to make hot coffee. And if this makes hot coffee, well, with the DMI positive all the way in [ __ ] off landia, the expectation will be is that we will see continuation of this bullish positive move. And once again, this ADX reading going from a historical record low to hot coffee as we break trend. Holy [ __ ] And then we throw in our Ballinger bands. Ballinger bands bulging tomorrow. Barring a ridiculous gap up, we are going to be uh back inside of the daily Ballinger bands as they continue to bulge. From a technical perspective, we have cooled everything off enough now to send the next move this week. And I could go through every [ __ ] technical indicator, but I don't want to do that. I just want people to see this chart as it is. It looks amazing. You've broken out of this. The last ingredient of this breakout in my opinion is now breaking this high. That candle open at 2521. I think if you can close above that, GameStop is going to run. Every technical indicator screams that this thing wants to go. The volume has begun flowing into GameStop. Now, all it needs is just a little push. And that one little push can really send this thing way up. But from every technical perspective, this thing looks amazing. Now it's just a matter of can we get the follow through. We want to see volume. We want to see options activity. We just want to see a surge of activity. But the fact that last week we gapped up and then held that gap up and closed near the high. In fact, having the highest close of this range, so so important. And while it is a daily dogee, we knew that being outside the Ballinger bands, GameStop was likely to spend some time chilling out before we get back inside. But like the last piece of this ingredient, uh the last ingredient to this recipe now is really breaking that body close high or body open high at 2521 and then getting through the daily 200 and breaking this death cross. Because if we break this
15:50death cross, right, you get price action back above this. Well, then you've got the 50 period already beginning to slope up and then that in the future can lead to another golden cross that hopefully we don't just casually [ __ ] gap underneath after it [ __ ] occurs, which that was, let's not talk about that. But we can produce another golden cross and that golden cross can come at another higher high as opposed to where other ones before have come. A golden cross, let's say here, is higher than the golden cross that happened here. And that's been true since the last one that happened down here. Every time it gets higher and higher and higher, we produce a higher floor, more bullish technicals for large bullish breakouts. But it looks awesome. It really, really, really does. We just now have to have the patience, right, to allow this thing to just prove to us, okay, are we breaking out. But this, as it stands right now, this is the closest that you will see me saying it's got to happen now. Like I I really think that we are now at the point where if we are going to see the breakout, it's got to happen within the next one to two weeks. I don't I don't think there can be any more hesitation after all this momentum, this volume, this positivity that we've built. The indicators pointing in a positive direction. You want to build off of this. And if GameStop wants to get money from the uh warrants that it's offering, the share price must get above 32. And I have a dream. The GME will be above 32. Might not happen tomorrow. It might not happen next week. Might not happen this month, but it's going to happen between now and October of next year. And if there was ever a time to send to Tendy Town, it's right here when every technical indicator is screaming bullish, bullish, bullish, bullish, bullish. And I'm not the only one that watches these technicals. I know hedge funds. I know institutions that are watching this [ __ ] And I promise you that they're seeing all of these technicals load up, too. And they're like, "All right, boys. Put on the hard hats. We're going to battle." But this is as close to the
18:44best position that we have been in since all the way back here in April. And then before that, all the way back here in October, September of of last year. And the last time that we had the ADX rise like this and the DMIs were broken apart, they weren't even broken apart as severely as they are here. These technicals are just screaming for somebody to take control of this [ __ ] and just punch it now. We just need to see it. But we're in a great position. And this week, you guys know what to look for. 24 is support. 26 is resistance. Through 26, we're filling the [ __ ] gap. You can go ahead and bookmark that [ __ ] If we fail 24, we're going to fill this gap. We're going to fill this indicator target. Then we're going to retest this trend line. And nobody wants to see that. We've built all this positive momentum. Let's go. But you're in it now, folks. This is the moment. This is the week, the next two that we want to see GameStop just go, go, go. And we have everything pointing in our direction. We just need that last little oomph. But from a technical perspective, we are in the best position we have been in arguably this year. All it needs is just a kick in the ass. And honestly, GameStop is trading still severely undervalued in my opinion. Now, I spent some time going over Reddit and I saw some very interesting pokes uh posts on uh stocks and value investing uh talking about GameStop. And some of the comments that I saw were um interesting and fair. Uh some people say GameStop isn't value investing because you're investing for the unknown and that doesn't count as value. Listen, every good investor that has made an ungodly amount of money in the stock market has at one point in or one point or another made a decision that was extremely high risk and extremely high reward. Those decisions often times were based on value that may not yet had been seen. If that makes sense. What I mean by that is perhaps people saw the value in the company before that value was ultimately achieved. And some of these stocks like Tesla or Bitcoin or Amazon or things of that nature,
21:55they traded well above their PE ratios or above their use whatever [ __ ] Wall Street metric that you want to use that makes you sound [ __ ] intelligent. All these stocks once people started thinking that there was value there, those stocks started to trade higher and higher to the point where their values didn't make any [ __ ] sense. But nothing in this stock market makes sense. It's not supposed to. It's math and numbers and money. GameStop is one of those stocks where the value is yet to be seen by the average normie who thinks GameStop is just relying upon their cash on hand to survive and thinks that because now oh they have $4 billion in debt. Oh now GameStop's cooked. But again, conveniently leaving out the fact that if GameStop used that cash and actually did just depend on it to invest in treasuries and do nothing with GameStop would still end up making a profit before those bonds went to maturity and GameStop had to pay them back. So that logic and that argument is dull and it's just it doesn't exist because it's not a thing. GameStop the business is relying upon its efficiency. It is driving itself towards hyperefficiency so that the core business doesn't need to depend on that cash. That's something that we have said on this stream several times. The other thing that we've spoken about is that at the beginning of this year, we talked about GameStop and how my expectation for GameStop this year was to make 500 million to $1 billion. So far, we've already racked up over $260 million in profit this year. We have a legitimate chance to hit the targets that we set out at the beginning of this year for GameStop. And if GameStop can achieve those targets every year, they're going to produce better results because the company becomes more efficient. And Ryan Cohen produces more outlets for GameStop to make more income, such as things like power packs. This company is fundamentally positioning itself so that it doesn't need to rely upon its cash on hand and so that when the time comes, Ryan Cohen and my bottle will take the cash that we have on hand and deploy it for whatever strategy Ryan Cohen and the GameStop board currently have. We don't know what that
24:54is. Great. I don't want to know. keep the ship steady. Keep the company doing exactly what it's doing because we're right on [ __ ] path. And when the opportunity presents itself, we will now have the cash ready and the business steady. and Freddy get ready cuz well I don't know the company's just going to be good. So thank you for tuning in. The levels for this week just as a final reminder for everybody. Okay, 24 is support. If you lose that, you're looking at the daily 50 and this trend line at about 23 to 2250. If we hold support at 24, we are targeting 2521 for an open and close above and then looking for the 80% chance of achieving the 382 at 2612 and the daily 200 period moving average. We are monitoring the weekly MACD cross. We are also monitoring how does the weekly react to the center line of the Ballinger bands this week. Can we break through it? Can we get back above all three weekly period moving averages? But as it stands right now, folks, this is the best that we have ever been positioned this year. And now we're hoping that this little accumulatory period can lead to a large breakout on G M. It's in the game.