Thursday morning

Gator's Chart of the Day: GME
(Click chart for better view)

By the time the market opens this may be ancient history but maybe not. Gamestop is reporting before the bell but it has already had a 10% sell off this week on high volume so the bad news could already be in the stock.  Not to mention there should still be significant short interest (Finviz shows 33.4% of the float is short) so any hint of less bad than expected could pop it higher.  The stochastic is diving hard but has not yet reached oversold (20) territory.

The Trade
If it sets up this would be a 59er.  It could be a gap up and go or it could be a gap down and bounce (my favorite.)  If it is the latter then here's the plan.

1. Using a 1 minute (super aggressive) or 3 minute (better idea) or 5 minute (you may miss a great entry) buy as the first green candle is printed.
2. Place your stop under the low of the day.
3. If the stock is still moving up with volume add aggressively and fill your position for the ride up.
4. Add stops as you add to your position.  This is a winning trade so don't let it turn into a loser.
5. If you hold later than 11:30 you should probably take a partial as a lunchtime pullback is reasonable.

Remember, do not force a trade.  This is an event and it could go either way.  You are trading (or not) the reaction.