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Edit: I meant to say "January sneeze" in the title, not squeeze.
If you're only watching the price of GME and the most widely followed indexes in the U.S. (S&P 500, Dow Jones, and Nasdaq) and you think nothing has happened yet - you’re looking in the wrong places. The market has already started crashing.
The market, represented by these indexes, is currently entering the correction zone. A correction is defined as a market decline that is more than 10%, but less than 20%. A bear market is usually defined as a decline of 20% or greater.
Small-cap stocks are already DEEP into a bear market.
My trading strategy focuses on small-cap and penny stocks that are owned by hedge funds known to manipulate the market. Many of the stocks I used to invest in are complete garbage, but I look for pump and dumps, obvious manipulation patterns, and anticipate runners based on near-identical charts of multiple companies.
My current watchlist is down an average of -66% for the 1-year. All of the stocks have been following a very similar downtrend and are bleeding for no rhyme or reason. The only thing these groups of stocks have in common is that they are all being heavily promoted by shills on StockTwits and strongly manipulated by hedge funds.
All these stocks have been in a bear market since February 2021, and all started falling following the January "squeeze." This trend is not normal.
Here’s my theory: The mass sell-off is certainly not going towards covering hedge funds' short positions, the capital is most likely being pumped back into the market to keep major indexes afloat. If so, they can't keep it up much longer.
Once they’ve sold off all their small-cap stocks, they’ll have to start selling off securities that represent major indexes and that is when we’ll be entering a bearish market. And considering how poorly the market performed in January 2022, it seems like that is getting very close.
Below are the YTD charts I was invested in, before January 2021. And let me make this clear because this is an important detail — I didn’t just select certain stocks that look similar on my watchlist. These are literally all the stocks on my watchlists, besides meme stocks and a few cellarboxed ones. I’m not picking and choosing the ones that look similar to make a claim.
[Here is an album if you'd like to take a closer look]
TL;DR: My watchlist is full of stocks that HFs manipulate and there have been mass sell-offs of every single one since February, even though we’ve experienced record highs in the market for months.
I know GME$ AMC$ meme stocks kicked off 2021 in high gear and then came to a halt around March.
But overall individual stocks did horrible in 2021.
Was this becuase of delta? Was it evergrande? Was it tech stocks going down? Was it inflation? Was it Americans not wanting to return to work? Was it COVID payments stopping on September 4, 2021? Was it people taking their money out of stocks and investing it into digital coins?
I’m sure I’m missing a bunch of things but genuinely curious to know why 2021 was bad year for newbie’s like me.l?
Seasoned vets seemed to do fine, hell my neighbor said it was his best year investing since he can remember. Props to the veterans out there.
I’m carrying multiple bags that I’ll doubt I’ll ever go positive on before these companies declare bankruptcy