Right now, the best pattern I see is buying short squeezes.
And THIS short squeeze was EPIC
I’m sure you’ve heard about short squeezes (I post on X about them almost every day).
But how do you recognize one in the heat of the moment?
More importantly, if you’re long-biased like me, how do you take advantage of it?
With a busy schedule, I sometimes miss the best plays (I’ve been filming a brand new guide this week, so I’ve been a little MIA).
But that doesn’t mean I can’t learn from it.
In today’s post, I’ll break down one of the most beautiful short squeezes we’ve seen in a while.
This one was SOUL-CRUSHING for toxic bitter lemon short sellers…
Table of Contents
Anatomy of a Short Squeeze
I hope you witnessed it. Regardless, bookmark this post and review it regularly, because it has everything you need to know to understand this phenomenon (and take advantage in the future).
I went over urban-gro Inc. (NASDAQ: UGRO) in my weekly Trading Challenge webinar on March 24.
So it was already a runner on March 23 (I missed it while filming).
On that day, UGRO squeezed from the $5s to the $8s.
I thought $2 to $8 was max, then it squeezed to the $9s after-hours that day.
On the 24th it consolidated, trading sideways most of the day.
Then on Wednesday March 25th, THIS happened…
I had no idea that it would go to the $16s.
It was 10:40 a.m. when it broke out past the previous highs in the $9s.
Then it went from the $9s up to the $16s in ONE HOUR.
It happened SO fast that I missed it… AGAIN.
I saw it but wasn’t really there for it… wish that I was.
I don’t short sell anymore, but the old me would have shorted, when it was in the $11s…
And the old me would have been squeezed. This is WHY I don’t short sell anymore.
I thought it was overdone when it went from the $8s to the $11s.
You can see the volume started to fade, so shorts were loading in.
This is why I always thank short sellers…
WOWOWOWOW $UGRO not done squeezing shorts, now its spiking into the 18s…I make fun of shorts, but I keep underestimating how absolutely horrific their risk/reward is right now and how many of them keep doing it over and over and over. God bless several big short sellers who… https://t.co/a7iOSGjr1e pic.twitter.com/7UGrQKbfDH
— Timothy Sykes (@timothysykes) March 25, 2026
Guess what?
UGRO probably never deserved to go above $11 (short sellers aren’t wrong, they’re just WAY too early and overaggressive).
But when there are SO many shorts and a stock holds its highs…
THAT opens the door to the squeeze.
And when it squeezes hard enough, it leads to…
Short Seller Soul-Crushing Volatility Halts
A volatility halt gets triggered when a stock’s price moves up or down too fast (it’s like a circuit breaker)
When shorts get squeezed into a halt, they often buy to cover coming out of it.
That “panic buying” can make the price gap up, or skip.
UGRO started skipping every time it came out of a volatility halt (see the chart below).
This is how shorts get trapped (and BIG short sellers BLOW UP)…
For all you big short sellers who don’t want to admit your losses publicly…
THANK YOU for sacrificing so much for us good guys. You ARE appreciated!
The crazy thing is that UGRO just kept going, hitting a high of $56.56 in after-hours trading.
That’s a whole lotta pain for short sellers.
More Breaking News
- UiPath Faces Declining Stock Prices After Multiple Price Target Downgrades
- CIFR Price Target Cut Amid Strategic Shifts and Earnings Growth
- Robin Energy Seeks Momentum Amid Financial Ups and Downs
- Lumentum Holdings Joins S&P 500 and Seizes New AI Opportunities
Tips to Buy Breakouts In Short Squeezes
You can see the pattern on the chart below: Big spike, consolidation, spike, consolidation…
You had multiple opportunities within that hour to get in. My bad for being busy AND conservative in my trading.
Long story short: I underestimated UGRO (and I didn’t want to chase it).
Short squeezes like this can have multiple lives.
5 HOURS SINCE THIS TWEET ABOUT $UGRO IN THE $11s, NOW IT'S UP TO 54….RETWEET IF YOU LOVE IT AND WANT TO JOIN ME IN THANKING @EternaLEnVy1991 AND HIS FRIENDS FOR PROVIDING SUCH A BEAUTIFULLLLLLLL SPIKE….WHO ELSE LOVES SQUEEZING SHORTS LIKE THE BITTER LEMONS THEY ARE??? https://t.co/GucJoe8EXM pic.twitter.com/QXZBV1FwPw
— Timothy Sykes (@timothysykes) March 25, 2026
You don’t want to be long on the backside.
The best breakout was the multi-day breakout over the previous highs at around $9 per share.
Even if you just took it from the $9s to the $10s, that would be a solid trade.
5 Tips to Buy Breakouts
- Look for the breakout over a multi-day high (especially if the previous high was caused by a short squeeze like UGRO)
- Watch for a repetitive “spike and consolidation” pattern
- Look for where shorts might pile in (fading volume and consolidation)
- Buy the next breakout and set a tight stop on the previous consolidation level
- Sell into strength or cut losses quickly
Major Props to SO Many Students
I’m proud of so many students who were there watching and trading this epic short squeeze supernova.*
MAJOR MAJOR MAJOR PROPS TO SO MANY STUDENTS IN MY https://t.co/occ8wKmT5U chatroom, shout out to upcoming millionaire @DonJuanKnows who rode it nicely afterhours from the $28s, a perfect double to the $56s already afterhours, but also give props to these upcoming students… https://t.co/jjE6EoSCye
— Timothy Sykes (@timothysykes) March 25, 2026
A bunch of students were buying UGRO. Most of them played it conservatively because we just didn’t expect that much.
Key Takeaways
Look for stocks making these kinds of moves. All you have to do is look for runners that break the previous high.
There have already been MORE this week (I’ll cover one in another post next week, watch your inbox).
Look for higher highs and lower lows.
When you see a stock uptrending and holding VWAP there’s an opportunity (but don’t FOMO chase).
When it no longer makes new highs and it starts to fade, that’s the back side (it opens the door to cracking).
If you keep it that simple, ESPECIALLY with these heavily shorted low float plays…
They can really run.
For real-time commentary and to join students like those featured in the X post above…
Apply for My Trading Challenge Today
Cheers
*Past performance does not indicate future results
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