Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
GameStop Corp. (NYSE:GME) shares closed at $101.74 Friday after the stock surged from under $45 on Wednesday to as high as $184.68 on Thursday.
Some traders may see the extreme volatility in GameStop as chaotic and unbelievable, but former hedge fund manager Whitney Tilson said Friday that GameStop and other meme stocks like AMC Entertainment Holdings Inc (NYSE:AMC) and Koss Corporation (NASDAQ:KOSS) have demonstrated textbook dead cat bounces this week.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
A dead cat bounce is a large, short-lived recovery in a stock that has experienced an extreme decline. Unfortunately, dead cat bounces tend to be bull traps for traders, tricking some buyers into prematurely believing the bottom is in.
Related Link: Kevin O'Leary Of 'Shark Tank,' Benzinga CEO Jason Raznick Talk GameStop, Bitcoin And Economic Recovery Trades
“Mark my words: These three stocks will never again reach the highs they hit yesterday and will continue their collapses back to their fair values, which are much lower than today's levels,” Tilson wrote in his daily newsletter on Friday morning.
The Law Of Twos And Threes: Tilson said the recent trading action in GameStop, AMC, Koss and other stocks reminds him of a rule of thumb a mentor once called “law of twos and threes.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
“What this means, he explained, is that every stock, on its way to zero, doubles three times and triples twice!” Tilson said.
While he doesn’t believe GameStop, AMC and Koss are worth zero, Tilson said they are only worth a fraction of what they are priced at today.
Tilson said the trading action in GameStop and other stocks ultimately results in retail traders losing money and faith in the market, which is bad news for every investor.
See also: How to Buy GameStop (GME) Stock
“What's going on sickens me — it's high time that regulators cracked down on all the things that have turned our markets into casinos,” Tilson wrote.
Benzinga’s Take: Love it or hate it, there’s no question the retail short squeeze pump-and-dump strategy has worked like a charm with GameStop.
Successfully timing the entry and exit points in highly volatile short squeezes can be extremely difficult, even for professional traders.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.