Market Updates: Market Poll, Bitcoin Correction, GameStop Saga

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As January comes to a close, the main stock indices plod on, Bitcoin starts to correct, and we start seeing extreme action on some lesser-known counters.

We also conducted a market poll to see what our readers think.

Market Poll on S&P 500 & Bitcoin

Last week, we conducted a market poll on our Telegram channel (https://t.me/synapsetrading), and here are the results!

Market Poll 270121

About 2/3 of those polled are bullish on the stock market, expecting the S&P 500 to make new highs.

In a similar vein, about 1/2 of those polled think that Bitcoin will make new highs.

Historically, the crowd is usually wrong, so let’s see how these predictions turn out! ?

 

Let’s take a look at the general market trends:

Daily Trend Analysis 270121

The stock indices (NASUSD, SPXUSD, R2000USD) and the Pound (GBP) are all very bullish, whereas the Euro (EUR) and US dollar (USD) are very bearish. 

 

Profit-taking on Bitcoin

In last week’s blog post, I warned people that the parabolic move of Bitcoin to $40,000 was not sustainable, and a correction was due.

Bitcoin has corrected about 30% from its recent highs, and now remains rangebound.

I will monitor for an opportune moment to enter.

Bitcoin 270121 1

Bitcoin 270121

 

GameStop (GME) Saga – What Exactly Happened?

As a business, GameStop, which primarily sells video games and gaming consoles, has been on a slow decline for some time.

That is why many large funds have huge short positions on this stock, giving it one of the highest short interest.

Gamestop 270121 4

 

The r/WallStreetBets community on Reddit, which has more than 2 million subscribers, decided to come together to buy up the stock and push up its price.

Gamestop 270121 3

 

As the price of the stock increased, this caused more funds to close their short positions (by buying the stock), thus further pushing up prices.

This is called a short squeeze, and it can cause prices to spike up.

 

Here is the daily chart:

Gamestop 270121 2

 

And here is the 15-minute chart:

Gamestop 270121 1
Gamestop 270121

The GameStop stock jumped more than 60% after hours as Elon Musk tweets out the Reddit board that’s the hyping stock. 

I wonder how this will end. ?

Stay tuned for next week!



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