I've written several times in the past that the GameStop (GME) insanity wasn't done. I mean, I wish it would end because it creates an instability and insanity in the markets. When we lose all grasp of reality and it spreads beyond one stock, you create a wave of uneasiness for traders who use risk management. I'm not saying one is better than the other per se, although operating without risk management will result in far more losses than gains for most. What I am saying is the uneasiness could result in another round of sell offs or big players stepping away from the bid. This market, she needs her liquidity.
A name I'm watching for a breakout swing trade is Ship Finance (SFL) . I remember years ago when shippers were all the rage. They've been relegated to background noise with the occasional momentum pop. As world economies reopen, there's a chance for some of these shipwrecked stocks to sail the bullish seas once again.
A close above $8.10 sets SFL on a path to $9, probably $10 as traders love the draw to round numbers. We have an ascending triangle setup but could use a little help from secondary indicators. The MACD has poked its head into bullish territory while the Full Stochastics indicator tests the midline. A turn higher here, even before price, should have some traders jumping on the name.
If you want to play in the GameStop (GME) , AMC Entertainment (AMC) , or Koss Corp (KOSS) meme stock game, I do wish you the best of luck. I have no idea if the next $100 is higher or lower. The other day, on Twitter, I discussed a run into the $280 to $320 if we broke above $220. I did not think we'd see $350 and $172 in the SAME day following the breakout. At this point, everything is a WAG (wild *ss guess) when it comes to that stock. Not only do I not like to invest that way, but I don't even like to trade that way.
This probably doesn't end until GameStop figures out how to do a massive capital raise and actually establish some plan, with capital backing it, moving forward. Ironically, that's when the diamond hand probably abandon ship... when GameStop actually becomes something with potential and a plan.
