I told everyone to watch this stock …
Every time I see short sellers getting confident, I know something explosive is coming.
On December 2, I sent out an alert about a low-float biotech stock that was pushing against resistance at $8 per share.
It spiked 160%* that day after announcing a key manufacturing milestone for its nasal spray platform.
I warned the stock looked ready to blow if it continued to test resistance.
Look at the chart below from December 2. Every candle represents one trading minute:
Sure enough, it erupted higher the next day.
The price surged past $8 during after-hours. In total, it spiked 180%* after breaking the resistance level.
The chart followed the same pattern I’ve seen for years: Stubborn short sellers try to ride a crappy stock lower, and they get squeezed to insane heights after panicking at the next sign of bullish momentum.
Our edge right now is that these short sellers never learn.
Now I’m watching for the next squeeze …
In this 2025 holiday market, volatility is a gift.
Get ready. I’ll be sending my next alert soon. And since history repeats, there’s another monster setup right around the corner.
How The Breakout Pattern Works
I’ve seen it a hundred times…
A stock spikes, fades, consolidates under a key level, and then explodes through resistance.
Sometimes it even retests the highs a few times before pushing higher, like my pick from December 2.
It’s called a breakout pattern and it’s the single most recognizable setup in my entire playbook.
Every time a stock rejects the same level (in this case, $8), short sellers get comfortable. They start thinking the level is “safe” and they add into it.
But every test of the breakout level will weaken the resistance. And once the wall breaks, shorts scramble to buy back shares. That’s when their panic becomes our gain.
Here’s what to look for:
- A clear resistance level tested multiple times on steady volume.
- Support levels where buyers consolidate and shorts take momentary profits.
- Volume confirmation. The breakout has to have fuel. If volume doesn’t grow, the move could fail.
When do we buy?
That depends on your personality and risk tolerance.
There are two viable entry styles:
- Anticipation entry: You buy before the breakout, near support or a higher low, and risk off that level. This gives better reward potential, but you’ll trade more fakeouts.
- Confirmation entry: You buy after the breakout triggers, when it pulls back momentarily above the breakout level, possibly bouncing off of it. You’ll pay a little more, but you’re following proven momentum.
Now … There is a way to rule out the weakest setups.
That way we can buy before the breakout with enough confidence to wait for the surge. That’s how traders can maximize gains.
The Secret Ingredient
Some breakout setups won’t squeeze another +100%.
The goal is to weed out the most likely runners from the least likely. That way we stand a better chance of making gains with minimal risk.
On December 2, the runner from my alert was Polyrizon Ltd. (NASDAQ: PLRZ), a tiny biotech with a float under 1 million shares.
The float is the key.
A low float means there are fewer shares available for trading. As a result, when the demand spikes, the price spikes at a sharper rate.
PLRZ pushed against $8 resistance for hours, building pressure. And overzealous shorts kept snatching up shares every time the stock seemed to confirm a ceiling.
Then, during after-hours on December 3, it finally broke. The price spiked 180%* as shorts scrambled to cover.
Look at the entire move on the chart below. Every candle represents one trading minute:
It’s the same pattern I’ve seen for 20+ years. But the squeezes are bigger right now because there are so many greedy short sellers in the market.
We’ve seen multiple +1,000%* short squeezes this year.
Most recently, SMX (Security Matters) Public Limited Company (NASDAQ: SMX) spiked 2,700%* from November 25 December 4 …
It’s the same human emotion every time. That’s what creates the recurring pattern.
And it’s not over. There will be another PLRZ, another SMX. That’s why I give out my free Daily Doubler alerts every day.
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You’re Just In Time
The volatility in the market is about to turn up to an 11.
If you thought the AI momentum was strong before, you’re in for a surprise.
There’s a new directive from the White House. And it’s set to trigger a $34 trillion shock in the market, with AI laying directly in its path.
This momentum isn’t over! And Trump’s pending move is set to send shockwaves through the AI market.
We only have a few days left to prepare: Look for this catalyst to hit the market any day now!
Cheers
*Past performance does not indicate future results
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