TICKER: GME
BIAS: SHORT
SUPP: 11.5, 12
RES: 13, 14
GAP%: -20
AVGV: 3.34M
ATR: 0.64
FS%: 30.47
NEWS: GameStop (NYSE:GME) is down 22% as investors seize on the news from earlier this morning that the company has ended the sales exploration process. Keep an eye on Barnes & Noble (NYSE:BKS) today as the two beat-up retailers sometimes swing up and down together.
NOTES: The stock has been downtrending for the past 3 years and has recently been trading between $12-17. There is a fairly large short float and this will probably be a good time for profit taking. Although I am bearish overall, there is a chance that short covering and bottom fishers could fill this gap in a relatively strong market. The news that the company is no longer looking to sell because because no one is willing to buy and they did not seem to even receive a bid seems like BEARISH sentiment. There is hope that investors may price in that a new CEO could help the company. Overall I am sticking to the SHORT side on this trade and only look for entries in this direction.
PLAYBOOK TRADE: I took a GAP DOWN BREAKOUT SHORT early at $12.32 for a quick entry on the open to the short side through premarket lows. I added a GAP DOWN MOMENTUM SHORT when VWAP showed that it wanted to hold as resistance and scaled some more into the short at around $12.05 on average. I held for a swing trade until it looked like momentum was stalling and the the $11.00 was forming significant support.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2019-01-29 09:31:22 | GME | sell | $12.320 | short |
2019-01-29 09:37:21 | GME | sell | $11.990 | short |
2019-01-29 09:37:37 | GME | sell | $12.090 | short |
2019-01-29 09:42:46 | GME | sell | $12.000 | short |
2019-01-29 13:05:35 | GME | buy | $11.210 | 0 |
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