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Reddit's GameStop (GME) Bastille Day prediction fails to deliver as shares fall today

Many Reddit traders and investors had circle July 14, 2021 on their calendar as the day the meme stocks would go to the moon. That prediction has sadly fallen flat on its face today.

Captain Business

July 14, 2021 2:30 PM

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The GameStop meme revolution continues into its seventh month, but things are getting pretty weird. Even by Reddit standards, this week's tinfoil hat theories were enough to make some traders' heads hurt. The most recent gem from Reddit involved speculation around July 14, 2021. That's right, French Independence Day. Also known as Bastille Day, many Redditors have pointed to today for the next possible meme stock catalyst. Some AMC and GME investors had gotten their hopes up that today would be the day that their beloved stock would finally moon. Other GameStop bulls had predicted that the company would announce something in the cryptocurrency space today. As of the market close today, all of those theories have been proven wrong.

Many times during the past year, Reddit has fixated on specific dates as catalysts for GameStop (GME) share price movements, and they have been wrong more often than not. Many people can be easily drawn into gambling on stock options with weekly expirations in attempts to game such dates, which goes against the core philosophy of the original rebellion, but we pointed out last week how many of these investors and traders don't seem to know what they are doing or how to really put the screws to hedge funds.

As for the theories surrounding today's expected catalyst, boy howdy. There are so many insane theories that we won't list them here, but check out this r/Superstonk post by u/pinkcatsonacid to get an idea. This extensive post breaks down all sorts of reasons Bastille Day could have been the day we mooned. 

Here's a list of some ridiculous theories floating around Reddit:

• GameStop changed its header image and avatar on Twitter
  • The hex code of the new branding is Bastille Grey
• Bastille Day involved a building being destroyed brick by brick
  • Ryan Cohen tweeted that phrase with a brick emoji
• Bastille is a form of Citadel
  • Ok, this is getting too dumb to keep going
• Just go read r/SuperStonk or $GME Twitter for more theories

Days like today highlight how many novice investors and traders are involved in the GME and meme stock rebellion. This article is not meant to disparage anyone's efforts, but instead should be taken as a reminder of the best way to approach the market.

• Investing takes time, and magical catalysts to the upside or downside do happen, but they are insanely difficult to predict
• The short squeeze is still on, and you don't need to make up reasons that it is still going on
  • The fact that GameStop (GME) is still trading above $160/share speaks to this
• If you really want to participate in the MOASS (mother of all short squeezes), don't waste money trading weekly out-of-the-money call options
  • the real squeeze is about taking over the share float 
  • it seems like a lot of people are trying to replicate the massive gains Keith "TheRoaringKitty" Gill was able to achieve with his 2020 options position, but that already happened
  • the best way to play the short squeeze and put the screws to hedge funds is to buy and hold shares
• Don't get discouraged if a stock doesn't go up on a day that someone picked out of thin air
  • Even if they provide "evidence," history has shown us that GameStop's stock moves in mysterious ways
    • most massive jumps in share price have come unexpectedly and without much warning
• Being patient is something the longs can afford to do
  • if you own the stock in a cash account or without margin, you have nothing to worry about
  • the short sellers are the ones that are being hit with interest fees and margin maintenance requirements
  • we can stay irrationally long the stock longer than shorts can stay solvent

What’s going on in $GME is set to continue until the shorts cover. Simple as that.

— Productive Citizen ✌🏾💙🙏🏾👊🏾 (@technosucks) July 10, 2021

Perhaps some of the theories posited on Reddit and Twitter will come to fruition at a later date, and that would be wonderful. The purpose of this article is to remind folks to not get their hopes up for made-up catalysts and to not get too down when they don't happen. GameStop has already shown an interest in cryptocurrency, and have done an amazing job paying off their long-term debt this year. There are catalysts on the horizon, but if traders will require patience if you really want to participate in this movement and help the company continue its transformation. There is one catalyst that is pretty clear for everyone, and there is no expiration date. The stock is still heavily shorted, and individual investors have taken control of a large chunk of the float. This will end when the shorts cover, simple as that. No predictions needed. Just simple logic and reason. Two commodities that are grossly lacking from the daily conversations surrounding meme stocks.

This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.

Full Disclosure:

At the time of this article, Shacknews primary shareholder Asif A. Khan, his family members, and his company Virtue LLC had the following positions:

Long GameStop via GME shares

Long GameStop via GME call options

Captain Business

Stonk Market Expert

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