Cramer Beats His Chest At GameStop Apes But The Stock Holds Strong

Cramer Beats His Chest At GameStop Apes But The Stock Holds Strong

Jim Cramer went on a Twitter rant Tuesday morning with a slew of insults aimed at GameStop Corporation GME Apes. The “Mad Money” host was triggered when @ConnorRoy14 called him a "bad guy" and advised everyone should “always do the opposite of Cramer.”

“You are the people who came in here and didn’t sell GameStop at $400 when I said to,” said Cramer. He then went on to claim he watched Robinhood traders “lose fortunes in options during the first actual downturn. They are the bad guys.”

Cramer doesn’t appear to have his facts straight, however, because the apes don’t trade GameStop options. One of the main principles of being an ape is "hodling" common shares until the mother of all short squeezes (MOASS) finally takes place. It’s unclear, regardless, how losing money on options makes anyone a bad person.

“Sticks and stones may break my bonds but that is why I carry nuclear weapons. You short timers are over, done, and are going to play bingo at sunrise senior living,” Cramer added.

Although the apes are a truly diverse group who come from all walks of life, career backgrounds, ethnicities and numerous countries around the globe, it's unclear how many are close to retirement age or what Cramer meant by referencing nuclear weapons.

Cramer’s outburst may draw attention, but will it have an effect on GameStop’s share price? On Tuesday the stock was consolidating some selling pressure from Monday when the overall markets wobbled.

See Also: GameStop Stock: The Naked Shorting, The SEC And Why The Apes Aren't 'Dumb Retail'

The GameStop Chart: On Aug. 23 GameStop broke up bullishly from a falling channel the stock had been trading in since June 11 and on Aug. 24 soared up 25% higher before entering into a five-day period of consolidation. On Sept. 1 GameStop hit a high of $231.44 and has since been trading sideways.

GameStop looks to have settled into a pennant pattern on the daily chart making a series of lower highs and higher lows as the trading range tightens. If the pattern is recognized, GameStop is set to hit the apex of the pennant on Oct. 5 and should break from the pattern before the date. Traders will want to watch for high volume to come into the stock on the pattern break for confirmation of a larger move.

GameStop is trading below the eight-day and 21-day exponential moving averages but the eight-day EMA is trending above the 21-day, which indicates indecision. The stock is trading above the 200-day simple moving average, which indicates overall sentiment is bullish.

  • Bulls want to see GameStop continue to hold above the lower ascending trendline of the pennant and then for big bullish volume to come in and drive the stock up through the top of the pattern and over a resistance level at $209. If the stock can regain the level as support, it has room to move up toward $225.
  • Bears want to see big bearish volume drop the stock down through the pattern and below a support level at $169. If GameStop loses the level, it could fall back toward the $145 mark.

Photo: Dimitris Chapsoulas on Unsplash

Posted In: Long IdeasShort IdeasTechnicalsTop StoriesTrading Ideas