Roaring Kitty is BACK on GameStop transcript

we're going to go ahead and jump into it GameStop up 69% right now this morning it hit a high of up over 100% this is impressive what is it 2021 so what's the Catalyst what's driving this up 116 million shares of volume the catalyst is that roaring kitty is back well sort of he posted a meme on Twitter and it was uh kind of like a things are getting serious meme where the you're usually like lean back like this and then like you're leaning forward like this and so on that on that Catalyst that Meme uh GameStop is up 70% right now so you know here's my kind of feeling on it my feeling was that this is not going to be anything like what we had in 2021 the big money shorts are ready they're not going to get in front of it too soon and they know all the tricks that they've got to hold it back I mean they succeeded the first time and and they will I'm sure succeed um if if push comes to shove so the fact is my gut feeling was that all right let's look at the daily chart on this are we at a point in the daily where this is like a Tipping Point that if we break things go crazy and usually that would have to be near all-time highs so the way it stands right now if you recall they did a traditional stock split of uh 1 to four not a reverse stock split but a traditional stock split so the price not adjusted for the split would be um 30 * 4 so right now so it' still be $120 a share pre-split prices which would obviously still be a huge increase over what it was prior to the move in 2021 but nonetheless the high up here which was 500 again factoring in before the split uh we're still well off that level so as a result of the split the current high is showing instead of 500 it's showing at $120 a share so given that this is the chart and we'll just accept that it's adjusted for the reverse split or for the traditional split uh the levels that I think are in play would certainly be at $50 a share $50 is an important level and then I start to look to the left and up and these are the level I start to break down so I look to the left right here I tag that level uh actually would mark it just to the high of that red candle but it's fine it's close enough I would tag that level there I would look to the left I would tag this high right here i' go to the left I would hit that spot right there and go to the left over here oops little spot there doesn't it's not it's a small spots okay um so small little spot there and then I would say here and here so these are the sort of big levels on the chart um now when we were when I was looking at this morning at like 22 $23 a share what was I thinking all right well it's above the 200 moving average um however it was above the 200 moving average here and then it was back below it it was above the 200 moving average here and then it was back below it it was above it here and then it was back below it so you know being above the 200 by itself doesn't mean a whole heck of a lot for me on with this particular stock looking back you know we're kind of back to the prices we at just last year right I mean it came all the way down to 10 and is now you know hit a high of $38 today which is a really nice rally here but this rally I don't think would have gone to here if it weren't for you know those posts on social media so realistically because there's not a a true Catalyst to support the move I'm not sure that it's going to hold these levels in fact I don't think it will and so my gut feeling on this was that this is a move that's going to get faded it's it's popping up and and I don't know how high it's going to go but it's eventually going to get faded it's going to come right back down and so you know we get this move up and then it comes back down right here move up and then it comes back down so that's my kind of gut feeling so this morning when I sat down and I saw that gme was on the scans I was like oh boy all right this is going to be a distraction it's a 269 million share float it's not really a small cap stock now it's volatile which I I'll give you that it's definitely volatile but it's got a lot of high frequency algorithms on it like AMC and these other meme stocks they're not really easy to day trade they're more things that people do well or seem to do well buying and just holding so I really didn't have a lot of interest in trying to day trade it now I did trade it and I'll go over those trades but my gut feeling was that I don't I don't think this is going to sustain and this is the type of stock that I could get myself into some trouble in because it's more expensive more expensive stocks have bigger ranges and next thing you know you know I could see myself punching an order for 4,500 shares and it drops two points I'm down n Grand just like last Monday and I was like I don't want a repeat of last Monday especially trading a higher price higher float stock that's a meme stock that's outside of my kind of wheelhouse now I did really well trading GameStop in 2021 I have a bunch of episodes here that Recaps I have some live trading archives I have a day where I made nearly $200,000 live trading YouTube live streaming and it was on GameStop so I've made my money on GameStop but I also kind of have a sense of when not to go back to the well because I sort of feel like at this point this well of GameStop is it's not I'm not g to say it's poison but in terms of for active day Traders I just don't think the opportunity is going to be uh the same having said that today was no doubt a really big move relative to what is normal for this stock uh so you know in the context of the last couple weeks we've seen over a dozen stocks that have gone up over 100% so in that lens it's not anything that special but for GameStop it is special okay so I sat down looked at the scans I was like oh boy we've got GameStop so I pulled it up and one of the first things I noticed pre-market was that we had a lot of sellers at $25 a share so on the level two there were a lot of sellers stacked at 25 so kind of sitting like right in this area here because of all those sellers stacked at that level I didn't feel comfortable buying for this breakout right here it ended up breaking 25 and then flushing back down and then after the flush not that far but it flushed back down and then it kind of popped back up so I was like okay you know what if it's able to hold it's able to hold so now let's get zoomed in here on this chart a little bit more uh let's see sorry um all right so we're going to get zoomed in get zoomed in here okay so we first have this um break of 2450 we come up to 25 we had this sort of jack knife right here where it flushes back down to 2420 and then it sort of curls up right here to 25 it breaks it pulls back it squeezes up to to 2550 it pulls back it pushes higher it pulls back and I ended up taking a trade on it right in this area here what I was looking at right here was there was a big hidden buyer at 2620 absorbing shares so we kept coming down to 2620 and we kept seeing buying buying buying buying buying there was a lot of buying right there so I was like okay there's there's no question about it there's there's some bid support on this um so I took a couple trades right here the first one was at 2625 and it comes up to 2650 but it wasn't able to break that level then it pulls back I do another dip trade it comes up to 26 it breaks over 2650 and then it flushes and then right at the open it pops up it flushes all the way down false halt bounces up pushes lower lower and then does an epic red to Green move all the way up to the first halt which opened higher into a second halt which opened higher into a third halt which opened yet even higher let's see into a fourth Halt and I think we had five halts up so I think it was yeah I'm pretty sure it was five halts up on this which is I mean that's that's really pretty impressive um so five halts in a row going up let's see it was one two three four five and then we had our first halt going down and then we dropped again bounced up pulled back again bounced up and at this point I just said you know what it's going to be it's going to be too difficult to trade in this area so one of the challenges for me with this type of stock was when you look at this setup right here you look at this pattern where would you say was the safest place to be a buyer I mean I I suppose you could easily in hindsight say right down here this was the first candle to make a new high sorry it was the one right here so first candle to make a new high was right there and that was that was a spot to be a buyer now the problem was at that time we had this caution flag of a high volume red candle right here so we had a high volume red candle where we started the day and then it dips down so I was sort of feeling like this price action was in the shadow of this big red volume bar you know when you have a big volume bar like that and it's sort of false breakout I feel like it kind of casts a shadow forwards where until can break over the high of that level I'm not really interested but the fact is when we finally did break through the high of that level then we're dealing with the fact that well this is a stock that has just shown that it can drop a dollar $2 dollar a share in an instant do I really trust getting in it right here and the answer for me was no and in hindsight I wish that I had put you know all my money into GameStop right here but you know hindsight's 2020 and I never would have done that so I I don't really feel that way in hindsight yes it's EAS EAS to see that that would have been a good entry but in the moment I didn't feel like I was able to manage risk so the way I kind of look at this was today this was the most obvious stock that everyone was trading it so happened that I didn't like it I didn't like it because the float because the price because the level volatility because the meme stock because it didn't have a clear Catalyst and I know that I'll do a lot better on a stock like some of the ones we had last week where we've got breaking news it's squeezing up 50 75 100% And it's priced between $5 and $10 a share I know that that's where I'm going to do better that's where I can afford to buy 10,000 shares if it goes up 50 cents I'm up five grand now I can afford to buy I guess I have enough money in my account to buy 10,000 shares of GameStop but do I really want to put a quarter million dollars into it and have it flush and be down 25 Grand no I don't I really I really don't want to do that so for me the right move was to sit on the sidelines during um this area here where I didn't feel like could manage risk it then opens from the Halt and just sort of pushes higher and I was like I can't chase it here we've already got two four five candles in a row they green it then opens higher and pushes even higher and I still say I can't chase it it then goes Higher and Higher and I'm like I can't chase it so it ends up peeking and flushing down and I was like okay there's the halt down and I said I would buy here if it does a false Halt and I would do that for the spring back up it did not false halt it did a real halt it then opens lower pops for a second goes lower bounces for a second goes lower and I say you know what now it's pretty clear macd is about to cross over this was the front side of the move we basically went parabolic and now this is the backside now it's possible that we could rally back up through 38 and 40 but I don't think it's going to happen because we don't have a really true catalyst so my gut feeling was at that point to walk away and so we'll look at my trades um for the day but I think that I made the right call if we look at it now in this area you'll see that um it's just faded back down right so now we've got this kind of sell off back down it's now it's near vwap volume weight average price could it bounce and curl off that level you know it could but is it going to I I I just don't really think so I think the easy trades on it are done and easy is so to speak they weren't really all that easy so this morning this is my grand total a measly $555 48 and I'll say that the moment I start thinking of it as measly and as nothing I'm no longer grateful for the real money that I made this morning I have $500 more than I had at the beginning of the day and when you start comparing yourself to other people you say whoa that person made 5,000 that person made 100,000 whatever it it is all of a sudden comparison the thief of Joy all of a sudden you're no longer grateful for what you do have and for what you did now for for me what I did right today was I maintain discipline I said I'll I'll break the ice on it when it was around 2620 and I tried a couple times made small profits with 1500 share position and then a 3,000 share position which even then I felt was a little heavy and I got basically nothing for it so I was like N I don't think I should push it here on this one and that was the right call now my first trade of the day was actually tgl and my second trade of the day was CLD and both of those rejected so I didn't have a profit cushion today and I felt why don't I have a profit cushion why didn't those work perhaps it's because GameStop is the obvious stock that's the one everyone's focused on so these other ones are you know GameStop has the spotlight today and for that reason I wasn't able to make a lot of trades on other things and and find success everyone was focused on GameStop now in total how well did day Traders do on GameStop today I don't know I don't think anyone is going to actually know that number I mean it's probably no one knows I'm sure there are people that did really really well on it in hindsight I could have been more aggressive but as soon as I start thinking of I could have I would have I should have that's coming from a place of emotion greed disappointment fear of missing out the foam with the regret of missing out and though the second you're using those words to describe your trading or you're using words that are black and white like I I never get these these never I never happen to be the one who's up $5 a share again I never I you know this never it's it always black and white terms cuz that's not the way it is with trading so when you're thinking that way you're starting to get more emotional and so for me I don't feel emotional right now I mean I had moments where I was like I'm a little annoyed about this but I recognized it you'll have the feeling you can't stop yourself from having the feeling the important thing is to be aware that you're having the feeling and that those feelings can then sort of guide your behavior and then lead you to overcompensate and take bad trades and start to spiral so when you have an in it into the pattern now the awareness of I'm feeling this way therefore I'm more likely to do this this and this and this helps you sort of get in there before you cross the point of no return and that's really one of the best things you can do so today is a small green day it doesn't really move the needle in a big way for me but that's all right it's a success from the perspective of discipline so if you recall last Monday had a bad day and that was disappointing so then I sort of pressed the reset button and came back Tuesday Tuesday first day of discipline Wednesday Thursday Friday all good discipline trading Monday 5 days now of discipline under my belt between me and the last kind of big red day all right I want to make it 10 so all I have to do right now is focus the rest of the week the next four days I'm keeping my head down hitting some base hits and not letting myself get caught into chasing money chasing moves just focus on a quality setups on the type of stocks that my metrics tell me I trade the best and if I can do that I'll probably going to have a good rest of the week focus on the process the profits are secondary the profits are a byproduct of the process okay so with that I'll uh wish you guys a great rest of the day I hope you uh crushed it on GameStop but if you didn't no big deal it's only one day and we'll be back at it first thing tomorrow morning I'll remind you as always that my results are not typical trading is risky so manage your risk take it slow and I'll see you guys back here first thing tomorrow