E388 Up 4.4% and disappointed, GameStop is a weird feeling.

Summary

The speaker expresses excitement for the weekend and shares the arrival of a new Eevee from Gamestop, adding to their collection. They discuss recent stock movements, noting GameStop's modest rise and the significant increase in XRT shares. They highlight the correlation between XRT's performance and other stocks' downturns, suggesting potential market movements. The video also touches on GameStop Pro's sale, the company's pivot to collectibles, and ends with a caution against diversifying into other stocks, emphasizing the importance of focusing on GameStop.

Takeaways

• 🎉 The speaker is excited about the upcoming weekend and the arrival of a new Eevee from Gamestop, adding to their collection of Pokémon merchandise.
• 📦 They express gratitude to an anonymous person for sending the Eevee and are currently experiencing sound issues with their recording setup.
• 📈 Despite a modest stock increase of 4.5%, there is a sense of anticipation as the speaker notes that the volume of GameStop and XRT shares is low but prices are moving up.
• 📊 XRT has seen a significant increase in shares, jumping from 3.8 million to 6.4 million in a short time, which is one of the lowest points of the year and is considered a positive sign.
• 🔄 The speaker discusses an oscillation pattern where XRT moves up while other stocks move down, which has historically been a precursor to significant events.
• 📊 They highlight the importance of the blue line (XRT) crossing under the purple line on a chart as a key indicator of potential stock movements.
• 📉 The speaker notes a lack of short signals and a drop in shares available to borrow, suggesting that the stock might be suppressed, possibly through ETFs and swaps.
• 🧲 Max pain for options is at $22, which the speaker considers a 'magnet' level for the stock price.
• 📊 The speaker is intrigued by the correlation between the Japanese market, City Group, and GameStop, and how swaps might be used to bundle and unbundle stocks quickly.
• 💡 They mention GameStop Pro being on sale and the company's collaboration with Mod Retro, hinting at a pivot towards collectible cards and games.
• 🚀 The speaker is curious about the potential impact of the Nura situation on GameStop, likening it to the Credit Suisse situation and speculating about volatility plays.

Q & A

What is the speaker excited about for the upcoming weekend?

The speaker is excited about the upcoming weekend because it has been a long time since the last one and they are looking forward to it.

What did the speaker receive in the mail from Gamestop?

The speaker received another Eevee figure, specifically a Lieutenant Surge's Eevee, to add to their collection of Pokémon and Pikachu figures from the year 2000 and earlier.

What is the significance of the increase in GameStop's stock price by 4.5%?

The increase in GameStop's stock price by 4.5% is significant because it indicates a positive movement in the stock's value, although the speaker mentions it was not a big cycle and they are curious to see what will happen next.

What does the speaker find exciting about the XRT shares?

The speaker finds it exciting that XRT shares have seen a huge creation of 800,000 shares in the last two days, moving from a very low spot and climbing up to 6.4 million, which is the highest it has been in recent times.

What is the 'Dorito of Doom' mentioned in the script?

The 'Dorito of Doom' is a term used by the speaker to refer to a chart pattern that resembles a Dorito chip, which they believe indicates a significant trend or event in the stock market.

What is the speaker's opinion on the correlation between the Japanese market and City Group?

The speaker finds the strong correlation between the Japanese market and City Group intriguing and questions why there is such a strong connection, suggesting that swaps might be used to bundle and unbundle stocks quickly.

Why does the speaker believe GameStop might be following Nvidia?

The speaker suggests that GameStop might be following Nvidia due to the use of swaps and other mechanisms in the background that can tether stocks together and then untether them as part of market manipulation.

What is the significance of the short percent and long percent in the script?

The short percent and long percent are indicators of market sentiment. The speaker notes that while the short percent has been falling, they are more interested in the rising long percent, which could indicate growing bullish sentiment among investors.

What is the speaker's view on the community's focus on other stocks besides GameStop?

The speaker believes that the community should remain GameStop-focused and avoid chasing other stocks, as they consider GameStop to be a unique case with a legitimate CEO and no risk of bankruptcy.

What is the speaker's advice regarding the use of GameStop Pro and Mod Retro?

The speaker advises that it's a great time to sign up for GameStop Pro and expresses excitement about the company's collaboration with Mod Retro, suggesting a pivot into collectible cards and games.

What is the speaker's curiosity about the situation with VB and its potential impact on GameStop?

The speaker is curious about the anomalous fail-to-deliver activity with Vanguard's small-cap fund (VB) and its potential impact on GameStop, speculating that it might lead to an event similar to what happened with Chewy and Costco.

Outlines

00:00

🎮 New Eevee Collection and GameStop Stock Update

The speaker starts with a cheerful tone, mentioning the arrival of a new Eevee from Gamestop, adding to their collection of Pokémon merchandise. They express gratitude to an anonymous sender and discuss technical difficulties with sound during video production. The summary then shifts to stock market topics, highlighting a modest increase in GameStop's stock and the anticipation of further developments. The speaker also notes the low volume but significant share creation in xrt, suggesting a potential market trend. They mention the oscillation between xrt and other stocks, hinting at a pattern that has historically indicated significant market movements. The paragraph concludes with a brief mention of other stock-related observations and a note on Max pain at 22, suggesting a focus on options trading.

05:04

📈 Market Analysis and GameStop's Correlation with Other Stocks

This paragraph delves deeper into the stock market analysis, discussing the correlation between GameStop and other entities like Nvidia and Chewy. The speaker finds it intriguing how these stocks can be 'tethered' and 'untethered' through financial instruments like swaps. They also mention GameStop Pro being on sale and express excitement about the company's potential pivot towards collectible cards and games. The speaker speculates on the importance of physical media over digital and the potential long-term value it could bring. They also touch on the topic of Vanguard's small-cap funds and their unusual fail-to-deliver activity, drawing parallels to past events and suggesting potential market impacts. The paragraph ends with a discussion on the IV (Implied Volatility) and its implications for the stock's future movements.

10:06

🚀 GameStop's Market Dynamics and Community Insights

The final paragraph focuses on the dynamics of GameStop's market performance, the community's reaction to various stocks, and the potential influence of external factors like the European and Japanese banks' situation. The speaker shares their thoughts on the community's tendency to diversify into other stocks and the importance of staying focused on GameStop. They also discuss the role of moderators in maintaining the channel's focus and the challenges of managing content relevance. The speaker disagrees with a theory on the 'Rex 068 code' and suggests that the community's diversification into various stocks post the 'sneeze' event was not an immediate reaction but a long-standing trend. The paragraph concludes with a personal note on the speaker's approach to discussing other stocks outside of the GameStop-focused community.

Keywords

💡Eevee

Eevee is a Pokémon character that can evolve into various forms. In the context of the video, it refers to a collectible item related to the Pokémon franchise. The script mentions receiving a 'Lieutenant Surge's Eevee' in the mail, indicating a specific version of the Eevee collectible, which is part of the ongoing collection of Pokémon items.

💡GameStop

GameStop is a major retail chain that sells video games and related merchandise. The video discusses the stock performance of GameStop and its implications for investors. The company is also mentioned in relation to the sale of collectible items like the Eevee mentioned earlier.

💡Volume

In the context of the video, 'volume' refers to the number of shares or contracts traded in a security or market during a given period. It is an important indicator of market activity and liquidity. The script mentions 'GameStop volume' being low while the price is moving up, indicating a potential increase in stock value without significant trading activity.

💡xrt

xrt likely refers to a specific financial instrument or stock ticker symbol related to GameStop. The script discusses the creation of 'xrt' shares and their impact on the market, suggesting that an increase in 'xrt' shares correlates with market movements.

💡Redemption cycle

A 'Redemption cycle' in finance typically refers to a period when investors are buying back securities or shares, often after a period of decline. The script mentions a trend where 'xrt' moves up strongly while other instruments move down, suggesting a shift in market dynamics.

💡Short selling

Short selling is an investment strategy where an investor borrows a security and sells it on the market, with the expectation that the price will drop, allowing them to buy it back at a lower price and return it to the lender, profiting from the difference. The script discusses the disappearance of short signals and the low cost to borrow shares, indicating a potential change in market sentiment towards GameStop.

💡ETFs

ETFs, or Exchange-Traded Funds, are investment funds that are traded on stock exchanges, similar to individual stocks. They hold a basket of securities and aim to track the performance of a specific index. The video suggests that ETFs might be involved in market manipulation or suppression of GameStop's stock price.

💡Max pain

In options trading, 'max pain' refers to the point at which the greatest number of options contracts are underwater, meaning they have no intrinsic value. The script mentions 'max pain at 22', indicating a specific price level at which many options contracts would become worthless, potentially influencing market behavior.

💡Short percent

The 'short percent' refers to the percentage of a company's shares that are sold short, indicating the level of bearish sentiment among investors. The script notes a trend where the short percent has been falling, suggesting a decrease in bearish bets against GameStop.

💡Long percent

Conversely, the 'long percent' indicates the percentage of a company's shares that are held in long positions, reflecting bullish sentiment. The script encourages viewers to pay attention to the rising long percent, suggesting an increasing belief in the stock's potential for growth.

💡Vanguard

Vanguard is a well-known investment management company that offers a variety of mutual funds and ETFs. The script mentions Vanguard's small-cap funds and their potential involvement in unusual trading activities related to GameStop, indicating a broader market context.

💡Fail to deliver

A 'fail to deliver' occurs when a party fails to deliver a security or asset on the settlement date of a transaction. The script discusses 'anomalous fail to deliver' activity related to Vanguard and BlackRock's small-cap ETFs, suggesting potential market manipulation or irregularities.

💡IV

IV, or implied volatility, is a measure of the market's expectation of future volatility of a security's price. The script notes that IV is starting to rise, which could indicate increased market uncertainty or expectations of larger price movements for GameStop.

💡nura

The script mentions 'nura' in the context of a situation similar to the Credit Suisse event, suggesting a comparison between two financial situations involving European and Japanese banks. This could imply a broader financial market event that might affect GameStop.

💡Puts

In options trading, a 'put' is a contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a set price within a specified time. The script discusses a sudden drop in puts, which could indicate a change in market expectations or a reversal of a previous trading strategy.

💡Category 42

Category 42 appears to be a reference to a source or group that produces content related to GameStop and other financial topics. The script mentions their theories and content, suggesting that they are a significant influencer or commentator in the discussion around GameStop.

💡Rex 068 code

The 'Rex 068 code' is mentioned as a theory or concept explored by Category 42. While the exact nature of this code is not explained in the script, it seems to be a part of a broader analysis or prediction related to GameStop's stock performance.

Highlights

Excitement for the upcoming weekend after a long time.

Receiving a new Eevee from Gamestop, adding to the collection of Pokémon merchandise.

Thanking the person who sent the Eevee, expressing appreciation for the gesture.

Sound issues experienced during video recording, leading to a shorter video.

Stock update on GameStop, noting a 4.5% increase but expressing disappointment due to it not being a significant cycle.

Discussion on GameStop's volume and price movement, with a focus on XRT and X2.

Mention of a significant increase in XRT shares, from 3.8 million to 6.4 million.

Observation of an oscillation pattern between XRT and other stocks, suggesting potential market movements.

Analysis of the correlation between XRT's upward movement and other stocks' downward trend.

Review of R show and Roaring Kitty's charts, noting similarities to past market patterns.

Discussion on the availability of shares to borrow and the implications for short signals.

Max pain point at $22 for options, suggesting a potential market attractor.

Increase in short percent and the corresponding rise in long percent, indicating a change in market sentiment.

Return of ba Trader and the 'Dorito of Doom' chart, signaling potential future price movements.

Curiosity about the correlation between the Japanese market, City group, and its impact on GameStop.

Hypothesis on the use of swaps to bundle and unbundle stocks quickly, affecting market movements.

GameStop Pro sale and collaboration with Mod Retro, indicating a pivot in the company's strategy.

Discussion on the importance of physical media over digital media in terms of long-term value.

VB ETF's anomalous fail to deliver activity, suggesting potential market manipulation.

Increase in implied volatility (IV) and its potential impact on market strategies.

Analysis of the Nura situation and its parallels to the Credit Swiss scenario, affecting GameStop.

Discussion on the community's focus on GameStop and the importance of staying on topic.

End of the video with a mention of another video that had technical issues.

Transcripts

good morning everybody it's Friday I'm

excited because it's been a long time

since the weekend and I'm looking

forward to it I wanted to share really

quick we got another Eevee in the mail

from Gamestop so we got a lieutenant

serges

Eevee uh so we're continuing our

collection of 2000 and earlier Eevees

and Pikachus and I just want to say

thank you again so much to the person

that sent that one in that was so cool

um and just way too nice honestly so I

was making the video this morning and

then my sound broke so I went to check

that everything was good and there was

no sound so I'm going to make this video

short unfortunately few things to note

really quick here I'm just going to go

through a couple topics cuz I want to

make sure I get this one out there in

time but you know nothing happened

yesterday we went up 4 a half% and yet

disappointment right cuz that was not a

big cycle so what happened I don't know

we'll wait and see I'm continuing to be

excited though because GameStop volume

while low price is moving up xr2 xrt

volume also low we saw huge creation

again on xrt another 800,000 shares so

just in the last two days went from a

very low spot on overall units of xrt

3.8 million we've now climbed up to 6.4

very quickly the highest it's been in

the recent past was just about 10

million shares of xrt but this is one of

the lowest it's been all year so very

exciting to see xrt move that strongly

and then correspondingly out of nowhere

we're seeing the trend on the other ones

to fall into a Redemption cycle so we

are seeing this oscillation very

suddenly start to appear and I think

when this happens when xrt moves up

strongly and the other ones move down

strongly and they cross in this fashion

things have typically happened so you're

looking for the blue line to cross Down

Under the purple line that happened back

here right before mid July that happened

back here right before June 6th and

happened back here here as May 13th and

14th was happening also happened right

back here um before or at the end of

April so that's good signaling to me

only other things I really want to

mention in this video are no one really

interesting on R show nothing really to

note on Roaring Kitty's charts except

for the fact that we had that gap down

looked very similar to early July first

day of July right here around the very

beginning of August and now it seems to

be moving out we'll see and then then

lots of shares available to borrow so

something I thought of as I was making

the video and hopefully this one does

work is everything that's happened since

the events here of May and June has now

turned into an event where all our short

signals are Vanishing we see cost to

borrow very very low basically zero

shares available to borrow huge um

utilization down to 30% or lower um SI

everything's dropped off right but that

exact same thing happened after the the

sneeze so but the stock was still being

very much suppressed in February after

the sneeze so this feels very similar to

that to me so how are they suppressing

it probably ETFs and swaps like they did

back then but we'll see Max pains at 22

so I'm trying to remind myself of that

that's where basically like our magnet

right is right now is for options

somewhere right in there and we're

pretty close to that and then other

things to mention would be just going to

hop through a couple posts over here

which is I'm excited about this one um

short percent had been climbing and

climbing and climbing the trend had been

very steady with only like volumetric

and big events G giving them some

breathing room and they would get short

percent down now it's like completely

inverted when we look at Short

percent now rather than looking at Short

percent which keeps falling I'm more

interested in how the long percent keeps

Rising so I would encourage this person

like keep doing what you're doing

amazing job but maybe start talking

about how the long percent is going up

so interesting Trend other things to

mention I love that ba Trader is back

great job with a new Dorito of Doom love

it so when we broke above the previous

Dorito we saw all this happen took

forever this one's got a much stronger

sloping downward uh line here when we

hit our $80 Peak here in May 67 here in

June and then 30 here in July so what's

going to come next excited to see and

then I just love this correspondent

that's going on here between um you know

it makes sense that the Japanese market

and um nura would be correlated but why

City group right and why so strongly and

I just had to say this reminded me of a

comment I saw yesterday which was that

these swaps can be used to bundle

baskets very quickly together and then

unbundle them so as a really good

example I was talking with someone

yesterday about swaps and I really

appreciate their time but they were

showing me that GameStop and shuy

starting at the end of 2023 and

beginning of 20124 right back in here

we're moving so strongly together it was

really really interesting and it wasn't

until GameStop earnings when it blipped

up really strongly actually I did not

notice that back there um earnings on um

March GameStop started to move strongly

but then all of a sudden the two rather

than being tethered together diver

strongly so chewy keeps moving up

GameStop gets slammed down into this low

here in April leading into May so I

thought that that was very very like

interesting because right now you're

seeing GameStop for whatever reason

following Nvidia very strongly and I

think that they can basically tether

these things together through swaps and

whatever they're doing in the background

um and then untether them too so they're

I don't know how that works why they do

things like this why GameStop follow

follows the S&P 500 or the Spy when it's

not in the spy uh as just Curiosities to

me wanted to mention a few other things

really quick here which is uh GameStop

Pro is on sale so great time to sign up

for GameStop Pro love the membership

it's super great and I love that they're

collaborating with Mod retro very

excited to see where the company pivots

into with collectible cards of all types

and collectible games I want I want to

see uh the market embrace the fact that

like physical media is more important

than digital media like you're creating

something that could potentially not

guaranteed but could have value long

term on a secondary market and

capitalize on that you know take

advantage of that give people something

that endures rather than just trying to

strip a little bit more value um in the

immediate future right another curiosity

to me love how maybe stuff we talk about

on this channel um gets people

interested in stuff going on here so let

me explain this really quick VB which I

had not previously looked at is

vanguard's one of their small cap funds

it had anomalous fail to deliver

activity hugely so along with black

Rock's small cap ETF back here on June

28th and July 1st which is right around

the chewy events so this would look a

lot like what happened with cost in

theory around May 13th and 14th so cost

then went on R show exactly $3 trading

days later so can we expect some kind of

interesting event to happen related to

VB like the creation of a large number

of units because maybe they've stripped

out very unusual number of uh fails for

VB but I need to go back and pull all

the data but it seems like this is what

they do in a time of emergency you go

and see an explosion of fails on one

particular or

um yeah they be fails on one particular

ETF so in this case it's VB I'm curious

because I think they did the exact same

thing during the sneeze so if you go all

the way back to the sneeze what was the

one that they were using on specifically

February 3rd let me find that date here

so here's February 3rd after the sneeze

because they managed to get GameStop h r

show somehow but you don't see the fails

happen they clearly used xrt like crazy

just days prior this was to get it off

its top but then they got it off R show

in the next couple of days and it's none

of these ones so which one was it that

they used so if anyone can look through

and find an ETF that has ridiculous

fails on GameStop it probably contains

cost as well because cost 35 days later

goes on R show so I think that's the

signal we're looking for finding one

back here but anyway just a curiosity to

me uh only other thing to mention here

is we've got IV starting to just barely

starting to creep up that's

exciting uh you know this nura situation

I think is very interesting to us

because it's very much like the um

credit Swiss situation so you've got a

European Bank you've got a Japanese Bank

we've got this carry trade a lot of

correspondence with GameStop just going

to continue to follow it and you know is

it fully Unwound yet probably not what

impact is that going to have on GameStop

I think that's our curiosity right now

and what's going on with these puts so

why would they suddenly drop all these

puts um they picked up they were they

were well buy them back I suppose they

were selling puts that were deeply in

the money getting a lot of money in cash

and then now it looks like that trade's

been completely reversed what is going

on here is this a volatility play I

don't know a lot about volatility

shorting but someone posted that in the

comments so it may be something that

people want to start researching because

not only could GameStop be shorted by

traditional

shorts uh during periods like we just

saw where it hits a high in price and

then people want to short the price but

we hit a high on volume and volatility

and then now we're coming out of that or

we've been coming out of that and have

people been betting against volatility

and if so when they end that bet what

would it look like and what would the

BET even look like would it involve

something like this with with deep in

the money puts or deep out of the money

calls I don't know how you bet on

volatility specifically and then the

last thing I want to mention here I

really like some of the content that

otherwise category 42's been putting out

specifically I really like their theory

on the Rex 068 code I've done a lot of

like kind of mapping onto the chart with

that idea and it's led me down a rabbit

hole then I'll go into at another date

but um I got to kind of disagree with

her take here I think think that the

community experienced right away after

the sneeze a lot of pushing into things

like silver weed stocks

AMC lots of different things and yeah

they might have all been related to

GameStop but this has been happening for

years and years and years and you're

seeing people trying to get people into

chewy trying to get people into cost and

it's like guys like there's one

idiosyncratic stock here where you know

that the CEO and the leers are totally

legit it's debt free and zero risk of

bankruptcy you go chasing off all these

other ones in the short term and I know

it's hard because people have attention

issues and I certainly do too uh but

very very risky so I would say the

efforts of the mods to keep the content

GameStop focused that's a hard thing to

do to decide is this GameStop focused is

it not um you know but certainly if

people are talking about other stocks

there's other places to talk about that

stuff and that's why why I decided early

on when I started digging in myself I'll

just make a YouTube video or you could

discuss it on Twitter or somewhere but

if super ston rules are no other stocks

I think that's a good rule there um so

anyway just going to leave that here you

guys sorry about this I had another

video in the the volume broke so uh have

a good one and I'll see you in the next

one have a wonderful weekend