How To Safely Profit On The Next GameStop

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Unless you've been camping on Mt. Everest this week, you've heard the deal with GameStop Corp(NYSE: GME).

The company had been on deathwatch since 2019, and didn't do as well as other pandemic-era "comebacks"… until the Internet got hold of it. The price action has been just absolutely bananas over the past week or so as momentum has gathered. In the five minutes since I started to type this, the price has yo-yoed in a $50 range.

GameStop has been a short squeeze of massive proportions, but as of Wednesday, the two biggest short positions, run by Melvin Capital and Citron Research, have been covered and closed. FinitoAndrew Left, the CEO of Citron – which really likes to short stocks – said his traders had covered their short at $90 and taken a 100% loss.

Without the big shorts, there's just no mechanical reason for this rally to continue. It's like a car with the gas light on – you might make it a couple more miles, but one way or another, you're stopping. It could be a matter of hours before those Internet-based investors realize they've bought big into a company that, for all the hype of the past few days, is still a really troubled operation on deathwatch.

Here's the thing, though… GameStop is only the biggest, most famous of these stories right now. Reddit, TikTok, and other social media-based investors have targeted other big Wall Street shorts out there.

I've made a list I'll share with you in a second, and I'll tell you how to play them.

Like I said the other day, cooler, calmer heads have a chance to sneak in the back door, safely pocket some gains, and get out again before anyone realizes what's happened…

This Could Be the Market's New Normal

I'm betting we haven't heard the last from organized, individual mobile-app investors – not by a long shot.

In fact, GameStop's far from their only "pet project" right now. The Money Calendar has shown me a list of stocks that are fundamentally pretty bad, but where there are excellent chances of a short squeeze happening. The sheer force of people going long on the stock could very well force the shorts out there to cover and drive the stocks up even faster.

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Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

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