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Corrections to the "Trade Idea: XRT and GME" articleCorrections to the "Trade Idea: XRT and GME" article

By FinanceTLDR | Mar 17, 2021

FinanceTLDR stock picks should be considered trades ideas and are for general information purposes only. They do not constitute financial, investment, tax, legal, or accounting advice nor do they constitute an offer or solicitation to buy or sell any securities referred to.

A few readers correctly pointed out that the daily average GME volume I provided is incorrect.

I wrote that the daily average volume was around $40 million, but it’s actually 40 million shares. This nullifies the point that GME selling from end of quarter rebalancing by ETFs is significantly comparable to daily average volume.

However, I still think that GME will fall to the low-mid $100’s as we near the end of March. Waning momentum, contributed by end of quarter institutional fund selling (including but not limited to ETFs), will dampen short-term enthusiasm for the stock.

The biggest risks for this play are:

  • DFV increases his GME holdings and shares the change in his occasional GME portfolio updates on Reddit
  • GME outperforms earnings expectations (earnings next week on March 23rd)

My long-term outlook for GME remains bullish, as I think they have a very good chance at turning the ship around and becoming a significant player in the fast growing video game industry. I shared my thoughts in this article.