GAMESTOP AND AMC GAP LOWER -- SO DOES SILVER AND ITS MINERS -- DOW REGAINS 50-DAY LINE
GAMESTOP AND AMC GAP SHARPLY LOWER... The recent short-squeeze mania may have finally run its course. Charts 1 and 2 show GameStop And AMC gapping sharply lower today. Other stocks caught up in the short squeeze are trading sharply lower as well. To the extent that last week's short squeezes may have contributed to some selling in the broader market, this week's plunge in GameStop and AMC may be one of the factors boosting stocks this week. The Dow Industrials were the only major stock index to fall below their 50-day moving average last week. The Dow is leading today's strong stock rally and has regained its 50-day line (Chart 3).



SILVER AND ITS MINERS GAP LOWER... Reports of a short-selling squeeze in silver and its miners helped push both sharply higher yesterday. At one point, the price of silver had risen to the highest level in eight years before ending the day well off its high. Miners also gapped higher. Charts 4, however, shows the Silver Trust iShares (SLV) gapping sharply lower today. Chart 5 shows the Global X Silver Miners ETF (SIL) doing the same. That leaves yesterday's upside gaps negated by today's downside gaps. And puts silver back on the defensive.

