GameStop & AMC RALLY: Roaring Kitty's Meme Trade EXPLAINED.

well what a morning it was roaring kitty

is back not just with the pump on

GameStop which boy let me tell you about

what's going on with those halts on the

market because those are freaking crazy

but folks you need to look closely at

this he's got a video game controller

and he's gotten a little bit more

engaged this has led to a remarkable

pump in GameStop stock but not just that

just about 24 minutes before the filming

of this video uh we had this this

here of a black screen that all of a

sudden turns

into Marvel movies of enthusiasm and the

Roaring Kitty growing his claws as the

Wolverine you'll see that in a moment

but this sort of cinematic effect was

really seen by many as a way to shout

out AMC as well in participating the

rally I'll do it myself as the cover

then you get uh this sort of shocked

look by the suits right the suits

freaking out oh my gosh there's the

Roaring Kitty oh no the suits are going

to get burned here comes the kitty with

the claw coming out from

volverine uh this has led to some

incredible uh price action in uh well

frankly the sticks let's take a peek at

what's going on here and I want to talk

some risks and some of some some of the

details that are going on uh first let's

go to gme and you really have to

understand the Fibonacci retracement

lines are are key here I teach this in

my stocks and site group uh the course

on building your wealth link down below

meetkevin.com coupon expires in two days

you know the drill CPI day okay so we

set this like weeks ago it's just

convenient that this is around this time

lot of people getting into trading now

so we've seen a lot of new members join

but something that you have to pay

attention to is first you need to have

your Fibonacci retracement lines drawn

now what did I draw them to am I going

to draw them to the 400 plus number no

of course I'm not going to draw them the

400 plus number what are you going to

draw them to you're going to draw them

to the peak of the market what was the

peak of the market we going to draw them

to the peak of right here this peak

November of 2021 those are the fibs that

are in play right now none of the other

fibs none of the 400 stuff none of that

is in play right now these are what are

in play and I covered this live this

morning you could see us basically live

talking about these sticks and when we

broke out the thought was we could break

3057 and get then get to

3694 which is exactly what happened and

as soon as we got rejected at 30 6.94 we

ended up at the 3057 line now we're

trading under it with declining volume

which is not great if you are trading

these you have to have to be very

careful of a few different things number

one declining volumes will hurt you on

the upside always the way you get

momentum stocks to go up is volume goes

up you need the mainstream narrative to

end the day today at 1:00 uh California

time 400 p.m. eastern time that the

suits are getting getting burned uh Wall

Street bets is back retail Traders Are

Back Robin Hood stock will go up

gamestock AMC cost uh maybe byd maybe

Alibaba you know some of the traditional

OG uh uh momenta movers will come back

Lemonade's going up on nothing 18% today

that company is out of freaking money

they've got $300 million and more bills

than they have actual cash to cover it

uh you know they're they're still losing

money every single month I love the

company but I can't they're uninvestable

to be why are they up they're UPC

they're up 19% because of the momentum

Can you short it no because the

fundamentals aren't what matter here

what matters is volume that's all it is

volume is the fundamental driver here

not the actual earnings reports now

something else you have to be very

careful of is if you're playing options

uh volatility goes up extremely high

when you get this sort of run uh and

these are the average candlesticks here

are the non- average you can see the

gaps talk about halts in a moment and

the manipulation of the S the the suits

but something that you really have to

remember is this coupon expiring is

going to be a big price increase on

Wednesday so make sure after CPI PPI you

join before 11:59 you had all my buy

sell trade alerts we've been green for

quite a while now we've been doing

really well we had a 500K win on Tesla

we had another 50k win thereafter I

don't always win and I don't promise

that we're always going to win who knows

maybe we'll hit a red streak but knock

on wood we've been doing really well and

if you want to see exactly how I'm

hedging the market going into CPI PPI

consider joining the courses before

rather than after the CPI PPI data comes

out uh in that Wednesday expiration but

look when you're looking at options let

me just give you an example okay so this

morning I was looking at the $30 calls

on gme they started at about

$3.30 they ran all the way to about $12

during this hype now they started at

$3.30 over here we're still well above

that now but we're down to about

$585 now so you've really gone from like

a 4X to like a 70 80% up which is still

good you know that's that's great if you

bought those calls at open you're still

up but the point is your most

substantial movement in an option price

if you're buying it comes from

volatility going up and that comes with

momentum so if you're trading this I I I

mean I hate saying this phrase but the

fundamentals of the earnings reports and

what they're selling does not matter

what matters is the volume and when you

get a bleed out in volume the price will

bleed down always I mean not guaranteed

you know hashtag and don't sue me bro

but you it generally always bleeds down

now what about volume uh and Holtz okay

so this is something that's heavily

misunderstood okay okay these are the

halts that we had today GameStop times

between halts so it opened and it got

halted after 5 minutes 46 seconds then

it was halted for 5 minutes it was open

for 138 halted again open for 156 halted

again 23 seconds 26 seconds 24 seconds

24 seconds 2 minutes 13 seconds 2

minutes 22 seconds now it's obviously

open again and a lot of people look at

this and they rightfully so they look

and go oh my gosh this the suits are are

ruining uh the momentum and and to some

extent this is true I'm going to explain

why that is true to some extent uh and

then I'm going to explain why it

actually happens so let's take a look at

this so what you have to understand is

stocks trade with an order book so

basically on one side let's say I have

you know 10 people and each of them are

like I want to buy or I'm just going to

do five people here just to keep this

simple for me I got five people who want

to buy a th000 shares of gme and I'm

just going to on this side I'm going to

write buy okay that's what I want to buy

uh and and this is basically what people

are bidding okay it's kind of like on

eBay when you hear bid think eBay bid

buy okay uh and then ask is the sell uh

you know these are obviously the spread

between the prices the bid and the ask

but this is generally what the seller

wants again think eBay so I'm just going

to write sell so if I have five people

that are each like I need a th000 shares

of gme At Any Price Market Market let's

say currently it's trading for uh

$25 and I get people throwing in Market

orders because that's what people do

when they're freaking out and they want

to buy the shares you know this person's

going to set a limit for let's say

$27 limit uh this person's going to go

limit at $28 I don't know this person's

going to go for a $30 limit okay let's

say I have no sellers what happens if I

have zero sellers nobody wants to sell

GameStop stock what happens to stock

nothing it doesn't move because there is

no transaction there is no last price to

report because there's no

transaction now what happens I'm just

going to go crazy here okay to be

extreme to make the point what happens

if a seller comes in and says I'm going

to sell one

share at $40 and it's just one

shair is the $30 limit going to execute

no is the $28 limit going to execute no

is the $27 limit going to execute no is

the $1,000 Market order going to execute

that

depends is this an All or Nothing trade

okay you could check the little box on

your brokerage and let's say that's an

all or nothing well there's only one

share available so that will not trade

if if it's all or nothing because

obviously I can't fulfill a th000 chairs

I can only fill one chair let's say the

other one is not all or nothing well

this person is going to get one share

that

fills so this is going to go down to an

order book of

$9.99 and one share is going to trade at

$40 well now all of a sudden and again

I'm doing this to be extreme like an

extreme example here but this is roughly

how it works now the last reported price

is

$40 it was at

$25 so all of a sudden the market moved

up

$15 on one

share that's obviously not sustainable

but let's say another share gets put out

at $50 another one share now and then

the same person executes right now the

last price is $50 it's up another 25%

woo

okay that it's not a real Market because

you don't actually have a balanced

Market what you have is one share

changing the price for everyone's

valuation and everyone's share which is

great if you're a buyer in this case is

bad if you're a seller but remember the

same goes in reverse when prices are

falling the same is true in Reverse so

how did stock exchanges try to solve

this remember an exchange change is just

the place where the buyers and sellers

meet right so stock exchanges tried to

solve this with the Lo okay what does

that stand for Limit Up limit down

basically when a stock trades for let's

say

$25 what they'll do is they'll create a

limit up and they'll say we have a band

at $28 and we have a band at

$22 and we will accept trade

within those bands so we're here we'll

accept trades within this highway see it

even looks like a highway we'll accept

trades in this highway okay as soon as

you get that one share that trades above

28 within a specific time frame you know

X number of minutes or whatever as soon

as you get one share that trades above

that 28 within that specific time frame

because of a thin order book this is an

example of a thin order book you get

what's known as

a halt think about it like the traffic

cop showing up saying whoa whoa whoa

whoa hold on hold on what's the

point the point of halting is simply to

say all right we got one seller at 40

you enter in a hold and you try to

create a balanced Market can you get

1,000 shares being sold at 29 can you

get a th000 shares being sold at 31 then

the halt uh is lifted and then all of a

sudden what happens well now you could

actually see the buyer at a $30 limit

right here this buyer can get matched

with

this uh this 31 can match over here with

this guy or potentially the other one

depending on which was entered earlier

and you still have that $1 so you can

get some of these trades that go through

but then that $1 one potentially throws

you out and gets you into another

halt so the whole point is to try to

create more balance between the buyers

and the sellers that's the whole point

of the halts now obviously if you have a

halt on the way up and you're waiting

for more sellers to come in obviously

that limits the movement to the upside

so yes the rules of the game do limit

this the movement to the upside in a

thinly traded Market they do also limit

the downside though in a thinly traded

declining market so the benefit works

both ways now obviously this is where

then we wonder but what about like the

suit shorting GameStop Yes Yes uh you're

at about well as of this morning you

were at about

25% of uh a float that was short you

know short sellers lost like a billion

dollars on uh GameStop today it was

crazy and they might lose more because

when this story goes mainstream you

could continue to see a a movement to

the upside on uh both GameStop but also

AMC AMC moving up quite nicely as well

32% on the day because of the gme

movement very good rivan's also up about

10% lemonade still holding on to 6% 16%

rather this is very common that you get

this sort of momentum movement now is it

the broker dealers that are ripping

people off like is it the Robin Hood the

Vlad the Impaler of stocks is it you

know wee or whatever that's halting no

usually who makes these rules are either

the

NYC

NASDAQ uh or

dtcc uh and these entities are basically

operating as what are known as SRO or

self-regulatory organizations they're

basically authorized by the secc to keep

markets orderly so these entities create

the rules that the broker dealer have to

follow and that's where you get you know

Robin Hood that gets hosed because the

rules and the formulas hose them now you

know does that mean you know that Robin

Hood wasn't sitting there and trying to

encourage the short sellers to win

because they make money from Citadel and

Kenny G gave him a not going down that

direction at all that's that's not what

we're saying at all simply saying that

these rules are established by these

entities broker dealers have to follow

them could there be biases in other

directions from the suit of course but I

find it very interesting that uh today

we had this pretty remarkable Fibonacci

retracement pattern here and I would

highly encourage you watch volumes

volumes today obviously very high the

highest we've seen we're at 95 million

of volumes but go back the past you know

month basically before this the highest

volume you got was on earnings of about

17 million shares traded but otherwise

you were sitting at 1.5 to3 million

shares 1.5 to3 million shares no volume

Vol no volume no volume no volume all of

a sudden you start getting volume volume

36 million 48 million 24 million 25

million boom 95 million could that

volume continue sure absolutely

especially as this gets more and more

mainstream media attention more people

make videos about it uh so we'll see

it's very exciting to watch and uh you

know I'm excited to play it as well so

I'm I'm personally watching I I I have a

very hard time uh ever encouraging that

anybody goes short on these I think that

is the perfect way to absolutely get

hosed and creamed and destroyed and and

wrecked uh obviously they're going to be

are like no I I want to go short I mean

I'm I'm looking at a $30 uh

puts and uh $30 puts in like the last

maybe hour uh in this mostly sideways

trading as soon as we had a candle here

I looked at the $30 puts they're trading

for about seven bucks and there's not a

lot of liquidity on them well since then

we've come down quite a chunk more more

and you're at maybe

$730 so cool you at like a four or 5%

move on a very very risky trade nah

that's not that's not very delicious uh

calls right now pretty expensive as well

I'd like to see the volatility chill a

little bit but that volatility could

explode again over the next few days

obviously we'll be watching it very very

closely CPI PPI will be a huge Catalyst

huge Catalyst I'll be covering those

obviously extremely closely uh and I

will also be sending before CPI and PPI

comes out I'll be sending out an exact

strategy for what I'm going to do as CPI

hits so when CPI hits people will know

who are in the stocks and pych group

what I plan to do uh double down sell uh

you know go long whatever it is I'll

have a plan before cpii and then once

CPI PPI comes out we'll execute probably

at Market open unless we get uh you know

a certain direction and it makes sense

to actually hold hold

it who knows what that references from

now engage the reversing engines I don't

know why that one's been stuck in my

head for so long anyway uh so look

buckle up this is going to be an

absolutely crazy week we could literally

have uh CPI and PPI come in soft if they

come in

soft GameStop could actually moon on a

good CPI read so vle up this is going to

be a really really fun week now make

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Channel yet you're part of that as well

so we got the main channel here and then

Market live I go live every day the

market is open uh with rare exceptions

and uh we'll see you there soon thanks

so much have a good one bye can not

advertise these things that you told us

here I feel like nobody else knows about

this we'll we'll try a little

advertising and see go congratulations

man you have done so much people love

you people look up to you Kevin P there

financial analyst and YouTuber meet

Kevin always great to get your

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