The Power Gauge Signals Caution on GameStop

Folks, "Roaring Kitty" has been back in the spotlight recently... Keith Gill is better known as "Roaring Kitty" on social media. He has been a vocal proponent of GameStop (GME). And he played a role in the 2021 "short squeeze" that sent the meme stock soaring. [Chaikin PowerFeed]( The Power Gauge Signals Caution on GameStop By Vic Lederman, editorial director, Chaikin Analytics Folks, "Roaring Kitty" has been back in the spotlight recently... Keith Gill is better known as "Roaring Kitty" on social media. He has been a vocal proponent of GameStop (GME). And he played a role in the 2021 "short squeeze" that sent the meme stock soaring. You probably remember the event. GME shares spiked 8,000% at one point in less than a year before many brokerage firms halted trading on it. That led to cries of a market "rigged" against individual investors. And Gill even ended up providing testimony about the event in front of Congress. Put simply, it was a spectacle. Earlier this year, Gill's reappearance on social media caused another brief frenzy in the stock. And just recently, a GameStop shareholder sued Gill – accusing him of engaging in a "pump and dump" scheme involving the stock. The shareholder ended up dropping the suit within days of the filing. Now, long-term GameStop fanatics might be hoping for another wild ride. So today, I'll explain why the Power Gauge is signaling to be cautious on the stock right now... Recommended Links: [MUST-SEE BY MIDNIGHT TONIGHT...]( Wall Street titan Marc Chaikin predicted 2023's bank crisis five months in advance. He also predicted last year's bull run when everybody was expecting a recession. Now he's sounding the alarm on what's coming NEXT for the stock market, based on a signal with 100% perfect accuracy across more than 80 years of historical data. [Click here to learn more before it goes offline](. [Our Affiliate's No. 1 Stock for the Rare 'Millionaire Window' Opening NOW]( According to Wall Street legend Whitney Tilson, an extremely rare window in the markets is about to open. It's an often-misunderstood market setup we've only seen 13 times since 1920. The last time this happened, it minted a million brand-new millionaires – in a single year. But Tilson says this unique window in the markets could close much sooner than anyone realizes, leaving most investors in the dust, while making a select few incredibly rich. [Get our affiliate's No. 1 stock (with 500%-plus upside potential) for this rare market event now](. Folks, there's nothing wrong with having fun while investing. And if that means spending a bit of money on an occasional wild idea... that's OK, too. But we need to be realistic about it. Meme stocks like GameStop are attracting a specific type of "investor." That's because this trade isn't about investing. It's about gambling on an extreme outcome. Just take a look at this five-year chart of GameStop with some data from the Power Gauge... As you can see, the stock has struggled. It was struggling before the short-squeeze event. And it has struggled since then. You'll also notice that GameStop has maintained a "neutral" or worse Power Gauge rating for most of the past five years. And based on its relative strength versus the S&P 500 Index, you can see that the stock has underperformed the market during most of that same time. Meanwhile, GameStop hasn't been consistently attracting what we would describe as normal institutional trading activity. We can see that with the weak readings for Chaikin Money Flow. This measures the so-called "smart money" on Wall Street. Instead, we see a stock that had unusual spikes higher and subsequent blowups. But that doesn't mean it's an "investment." Today, GameStop earns a "neutral-" rating from the Power Gauge. That means the stock was previously rated "bearish" but has moved above its long-term trend line. That makes sense. The return of Gill is bringing broader retail attention back to the stock. But one look at the company's Power Gauge rating makes it clear that the crowd is here to gamble. Take a look at this screenshot from our system... GameStop fails in the Financials, Earnings, and Experts categories. And if you've followed the news, you know that the company has cashed in on media frenzy. GameStop's share count has exploded since its low in 2021. The company has issued billions of dollars' worth of shares in the past few years. So if you're looking to gamble in the markets... a meme stock like GameStop might be exactly the kind of thing that interests you. But don't let the media attention fool you into thinking there's something real going on here. If you're looking for an "investment," GameStop just isn't it... at least, not by any reasonable standard. Good investing, Vic Lederman Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +0.21% 9 16 5 S&P 500 +0.58% 110 306 81 Nasdaq +1.1% 36 51 13 Small Caps -0.48% 398 1065 428 Bonds +0.93% Communication Services +1.94% 8 9 2 — According to the Chaikin Power Bar, Small Cap stocks have become somewhat more Bearish than Large Cap stocks. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Discretionary +3.78% Information Technology +2.94% Communication +2.45% Staples +1.04% Financial +1.0% Utilities +0.6% Real Estate -0.29% Materials -0.46% Industrials -0.53% Health Care -0.92% Energy -1.15% * * * * Industry Focus Biotech Services 25 78 27 Over the past 6 months, the Biotech subsector (XBI) has underperformed the S&P 500 by -15.83%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #11 of 21 subsectors. Indicative Stocks [rating] APLS Apellis Pharmaceutic [rating] ALT Altimmune, Inc. [rating] RYTM Rhythm Pharmaceutica * * * * Top Movers Gainers [rating] META +5.89% [rating] BAX +5.28% [rating] AMD +5.11% [rating] WRK +3.54% [rating] STZ +3.5% Losers [rating] LUV -5.74% [rating] FSLR -3.84% [rating] VLO -3.61% [rating] MU -3.41% [rating] UAL -3.11% * * * * Earnings Report Reporting Today Rating Before Open After Close ACI No earnings reporting today. Earnings Surprises No significant Earnings Surprises in the Russell 3000. * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. 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