Off, What a day! We've got to give a violent update on the market and plays. Then I want to talk about the revival of Retail Revenge Stocks. Not meme stocks, but Revenge stocks. Gme has now doubled in four trading days.

Amc not too far behind, jumped from 12.90 from last week's lows to 22 bucks at highs when I was shooting this video. What catalyzed these moves? How far can they go and what do I think about a sustained comeback for these tickers? Let's get right into it and you're going to want to watch the entirety of this video. Okay, so overall markets were fairly flat and red to start the day, with Growth Tech stocks symbolized on the Ark Index far outperforming in the beginning of the day. Despite the rest of the market in the Red, which was strange, you saw a weird divergence between most major indices in Growth Tech.

Early on today and then about 205 Pm Eastern the news came out that the Us government had formally accused Russia of committing war crimes in Ukraine, and that little bit of strength was killed along with the overall market. But what is interesting is that markets have been showing a lot of willingness to buy both Growth Tech and especially Big Tech. Look at Apple and Tesla the last couple of weeks, and when they do, they aren't just buying it up one or two percent a week, they're buying it up many, many multiples. Obviously, during usual and healthy market conditions, you get that trend where if the S P goes up one percent, your growth stocks go up three, four, five, or even ten percent.

But that correlation has become more and more strong, which suggests that giving a broader, more stable environment, investors are a lot more aligned with where prices are now than where they were maybe a year ago. Increasingly though, we are finding ourselves in a fun market, people are scared enough about the next ominous downturn and the next Russia escalation, the Fed tightening cycle, and the wrath of the person they flipped off on their right home, that they want to keep prices cheap, but at the same time participation is increasing rapidly. People are more and more willing to take spec capital and rally up stocks that are based on the current market environment, causing some to run up three four hundred percent week over week. You didn't see any of that back in January.

You also have some capital pouring back into specific growth stocks at these prices, many of which have seen returns of 10, 20, 30, 40 in the last week, but still at the end of the day. It's fun and dandy to talk about how things feel after a bit of a recovery in the broader market, and you and I probably have that same feeling in our guts, that feeling that this is just another quick breather before the next downturn starts. I mean, you look at the triple Q. This may be one of the most significant recoveries we've had since the downturn, and we have broken into an upper direction over our red directional Sma line.

but Putin can spit flaming vodka at our technical analysis at literally any moment. Now, on the flip side, without further Russian escalation, I do think that markets have fairly prepped themselves for the situation we're in right now, where we're going to have a few more months minimum of really really hot inflation data that's going to be combined with a minimum of seven rate hikes total this year, but perhaps some of them being half point hikes. But you have those massive massive wild cards of number One, Russia and number Two, the economic reaction. Moving on to plays so Imp with the unfortunate taker name back in commission today as they've completed their share offering.

One of the pros of Imp now and why it rose so much today probably compared to others is because markets now think that the future risk of dilution here is lower than it is for other spec energy disruption place. Why? Well, because back to back dilution doesn't usually happen. It can, but it doesn't usually. Whereas if you're trading a spec energy play which hasn't done a share offering, then all of a sudden you're thinking, well, why wouldn't I just switch to Imp which already did one and that fud catalyst is behind me that said, keep your plays on this momentum based.

I wouldn't want to hold this during a downtrend. This play is determined on energy prices continuing to heat up. Eventually, energy prices are going to go down and they're going to go down dramatically. It's anybody's best guess though, when that's going to happen and I think that we have more uptrends in our future.

Next, our allg play was a beast today. I feel like Charlie of 2021 again. We briefed on it at about 38 minutes prior to market open and it ended up running from 1080ish to 23.91 Now we briefed on it because I saw it as a emerging hype Ev charging network. Stock that recently went public via spec had limited trading but a lot of attention and a little float.

and it was getting a ton of attention specifically on social media forums, which we usually see as a main driver, especially the last few weeks of stocks like this rallying. So you had all the hype cards going for you and the Ev hype card as well. Meanwhile, it showed a bit of proof of concept in the pre-market and I felt that was enough evidence to suggest a higher likelihood than average of a sizable run. And it did run sizably.

That said, you can find as many runners as you want, but if you don't have a clear strategy for how to capture the run, you're probably still going to lose money or at least most of the run. The way we look at charts ta wise is via a set of elevating and deprecating factors. When you see a break upward of our red directional Sma line, we consider that a change into an upward direction, and when you see a break below our blue price strength Sma line, we see that as a reversal of price strength and thus a potential period of time to sell out without taking on extra risk. You can always rebuy back in if you regain price strength and other elevating factors, but the ideal trade from that standpoint would be to buy in at confirmation of positive price strength or stronger direction, and to sell out at validation of a downtrend, which again, is that break below the blue Sma when you get that first major break.

No one does an ideal trade, but the point is, if you have actual standards and an actual plan for your trade, then you're not just going and throwing cash and seeing what sticks. I strongly believe if you're watching this video, you deserve to have a clear entry and an exit point plan, and you deserve to have a clear idea of what you're trying to do in the position instead of just oh somebody on Reddit told me it's gonna run. oh Charlie mentioned it in a video. Take a look at these two videos that I made a few years back.

I'll link to them below. It's when to buy a stock and when to sell a stock. Crucial videos to watch if you're trying to improve your short-term game. Just to reiterate my point with another example of one that flopped.

Lbps pushed up huge this morning as their drug candidate met its efficacy goal. It sold off into open into a downward direction, faked out, and then finally broke into positive price strength and direction and had one last hurrah, upward before selling off again. But here's the thing: if you were spoiling yourself, you were absolutely spoiling yourself with actual standards and said i won't trade it unless it has a clean break on both direction and price strength, which happened here above both Sma lines at the same time, and you promised yourself to exit at a reversal of said price strength, you'd still have walked away with something rather than getting destroyed on the downturn and in opportunities where you wouldn't have walked away with something, you'd be controlling your losses. So again, part of the game is showing up every single day and making sure to find catalyst runners when they appear.

The other part is making sure to control your risk on them. Okay, main entree: Gme and Amc. Ooga Booga Jimi had its most extreme breakout of direction since it broke into a downtrend back in November. It had a few fake outs last month, but we are a few licks away from breaking out past previous attempts and with Amc similar story.

Mc had some weaker breakouts last month, but has really pushed ahead breaking both of those previous attempts as well. So what happened? Well, first of all, you had the capital environment set up in a conducive way. Indices overall have provided a positive condition the last seven or so trading days. for risk on trading to return Two, you've gotten the return of massive retail interest pretty much everywhere.

Over the last three weeks, people started paying attention again to the energy trade, how the markets were impacting, how the markets were impacted by Russia, and the overall massive panics and volatility that we were seeing. And then they were confronted with massive massive returns of capital back into the market at least over the last eight or so trading days, and their portfolio is going up a lot, as well as starting to see some big runners. Which of course, we know drives a lot of people to be interested in the market, but those two are based more on the environment. The third and major catalyst that really stoked the flames here was Ryan Cohen buying 100 000 shares of Gme, causing tons of interest to flow back into Gamestop, and then sympathy capital flowing into Oogabooga, Amc, and others who were reminded that hey, the meme trade is not dead yet.

In fact, it's transforming into a retail revenge trade. But to really understand the significance of what Ryan Cohen did, you have to go back to Fall of 2020.. around September 2020, it was revealed that Cohen had a 10 stake in Gamestop, making him the biggest individual investor. His firm wanted to get more involved with the company in order to transform it and turn it around after a disaster of a year, but it was extremely shorted as short sellers bet that Gamestop could never come back and that people would just give up on it.

And during that fall period, after Ryan Cohen had bought shares, the price had nearly doubled as positive Pr awareness on the short interest and overall hope on the turnaround caused people to buy more and more shares. Combining that with the very aggressive short selling position, short sellers were just not prepared and it caused prices to go up quite a bit. Cohen then later increased his position at the end of 2020. Not to be clear, Gamestop was already getting attention on media forums prior to Ryan Cohen buying anything, but everything changed when he started investing heavily.

Here you have an extremely successful businessman who founded Chewie and sold it to Petsmart in the largest E-commerce acquisition of all time. He was considered a saving grace for the company and a huge game changer. If Gamestop's interest was here before Ryan Cohen, it was here after and then in January 2021, all hell broke loose when Cohen was appointed to the board of Gamestop. That catapulted levels of interest, created insane publicity, created insane momentum, which then created more publicity, which then created more momentum, which then of course created more publicity and the price went from 20 to nearly 500 in its infamous rally that was then killed when a certain button was taken away.

But now, more than a year later, seeing Ryan Cohen buy Gamestop again is increasing interest dramatically because it's seen because it is being seen as a vote of confidence that hey, this meme movement isn't over yet. It's a huge symbol. Now, I don't want to give Ryan Cohen too much credit here. I think that some come back in some form was inevitable.

I think this is just what ignited the flames. Hopefully they didn't use too much oil though, because that shit's expensive, especially if they use imp. I hear they're using something that's not exactly oil over there. But anyways, why was this inevitable? Well, I follow Charles Payne on Twitter who is a Fox News business personality and he said something very, very thoughtful yesterday.

he said this year hedge funds and active money managers have been aggressive sellers and Retail has been a net buyer. The establishment has thrown everything at the so-called the Money crowd but can't keep them down. Now why is that? I think the answer is because a lot of people are waking up to how the game is played and now not only are they waking up to how the game is played, but they're now being handed a massive opportunity to see the downside of that game instead of just the upside that they saw at the beginning of last year? This is not just about Amc and Gme, but also other stocks like, say, Tesla, a million other big tech companies, as well as, of course, growth tech companies. The game is pretty simple at its core, although there's many different complicated methodologies to making it happen.

The game that Big Money plays is rotating tons of money, usually leveraged into and out of markets, causing massive euphoria, fomo buying at the top, and massive massive panic selling at the bottom, creating a huge opportunity to make tons of money on longs and shorts based on nothing having to do with the company itself. And obviously, Amc and Gme have kind of been the revenge of that Because they're not based on the fundamentals, they're based on just playing the market cycles within these individual stocks that have been attacked so heavily. Usually it's hedge funds that trade stocks that have nothing to do with fundamentals and manipulate people who believe in the fundamentals of the company. But in this situation, it was actually retail traders who screwed the hedge funds that actually thought that these were fundamentally overvalued.

Now, obviously, both of these stocks have gone down significantly since their peaks, but the point is, this is so much bigger than them. But anyways, at the end of 2021, I made a video talking about four different scenarios that I see playing out for Amc, specifically in 2022.. I said the short seller optimal scenario is that Amc slowly drops as retail traders lose faith in the ability of the stock to retain enthusiasm. I said the Amc ooga booga optimal scenario is that Emc holds some level of retaining power and then a jump in retail participation sometime.

and hopefully Q1 early Q2 causes inflows into the stock, forcing higher risk, higher leverage shorts to cover early and inducing a higher chance of an anticipated squeeze. Um, another anticipated scenario that I gave would be Amc holding retaining power at a lower degree than it does now, but becoming a legacy asset long enough that a lot of the Shorts decide. You know what? it's time to pour losses and go home causing a rally. And then for the last I said the middle ground is dying enthusiasm.

But enough legacy holders that you retain value somewhere between 15 and 20 bucks, causing the lower level and higher risk shorts to induce a mini rally. Now in my view, I thought we were heading more towards this the last two months this middle ground scenario, but now we're starting to move a little bit more in the direction of this one because of new participation. I think that Amc and retail trading stocks have had a lot less capital to buy dips on, and a lot less capital to fight off short attacks During an environment where short attacks were increasing, there are certainly enough legacy holders To keep it up a lot. But think about it this way: when you have 100 shares trading, let's just say there's 100 shares and 90 of them are just legacy holders.

If 10 of them are net sellers, then you're going to get a price that drops dramatically, and especially if there's more than 10 that are net sellers because you have a lot of shortage shares. Remember, market prices are a result of shares being exchanged, but when push comes to shove, if you're trading at a market price of 12.90 there's not an infinite number of shares available. at that price. There's only a few.

So when you start buying again, all of a sudden, those prices go up dramatically because the legacy holders that held all the way to 1290 are probably not going to be selling at 13, 14, 15, 16, or 17 bucks. So if you're a buyer, you have to chase that price all the way up until you find a seller. Once you've bought up all the panic sellers and the shorted shares, there's not that many other shares available. What is interesting about this breakout is that we are now in an environment that is a lot different than the beginning of 2021 was in 2021.

Everyone was making tons and tons of money, lots of risk on trading, economic growth was roaring, hedge funds were taking on incredible risk, and people weren't that worried about many things. I mean, there was some fear of inflation, but the Fed was still saying it was transitory. Turns out, inflation was about as transitory as the stomach aches I get from Taco Bell, which is the say. they end, but they end painfully.

But nowadays we have the Russia war. We have actual Fed action taking and increasingly pricing in more and more rate hikes. And if these stocks even manage to get a smidgen of the attention that they got last year from retail traders, the risk profile For shorts that are still short, this doesn't make a lot of sense. Sure, a lot of shorts are in the red with this and they may not be able to cover safely, but there's still a lot of shorts that shorted this at 40, 30, 20 that could easily cover right now with a gain or a slight loss.

Go short something else and not have to risk getting handed their lunch money. if a lot of retail traders do decide to buy things up. if they start covering, that could create enough buying pressure that causes a lot of the higher risk shorts to have to start covering. and kind of a year plus into the story.

It feels kind of painful to even speculate on when a squeeze could happen. but the numbers are the numbers. It's just a question of how much momentum this can get. You look at some similar attempts back upward like this period, and this period, they just got eaten up afterwards.

In order for this momentum to really, really kick in and snowball, you need to show the market not just a change of direction, but price strength that is significantly and obviously bigger than the previous attempts. For example, this one here jumped from 20 to 31ish. If this rally this time jumps from say, 12 9 to say 22 and then to say 30. All of a sudden, markets are going to say okay, something different is happening here.

We're seeing a much bigger change. Risk profiles are going through the roof right now. this could easily get bludgeoned tomorrow. And then all of a sudden we're back down to the situation we were in three weeks ago.

But you see this hit 30. Within the next five to six trading days, the market starts acknowledging that something is going on here, and you start really scaring shorts and you start incentivizing retail traders who are on the sidelines as well as legacy holders that want to add more but just don't want to lose any more money. if things go back down to start buying in, Then all of a sudden that momentum builds on the momentum and you get into a situation where you're back to the best parts of last year. Now in terms of Gme, if you actually look at the broader chart, you're getting eerily close to previous support from a long time ago.

and when you break below previous support levels, they become new resistance, but vice versa. If you can break that resistance all of a sudden, you're getting to the situation where you're back at that old support. If this can break and hold somewhere in the high 140s and especially the 150s, I think it's going to start getting significant interest again. and I think it's going to start increasingly creating a ridiculous risk profile for short sellers that can cover this safely.

And if they cover, you, get the ones that can't cover safely all of a sudden going and trying to panic in anyways, folks, those are my thoughts. Let me know what you think down below: if you're looking to learn how to trade. With our private chat, daily morning briefings, price, target list, and and step-by-step lessons, I'll put a link to Zip Trader U below coupon code. Never give up.

We'll get you a sizeable discount, and if you are broke or curious, I'll put a link to Moomoo down below. Moomoo will get you five free stocks and one share of Neo when you both sign up and deposit with our link below. Anyways, have a good one and I'll see you in the next video.