Welcome traders,
The moves so far this week are insane!
And there will be more opportunities to trade today and Friday. Some of these runners are still in play.
Take a look below, this week …
Datasea Inc. (NASDAQ: DTSS) spiked 50%:
Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) spiked 510%*:
Children’s Place Inc. (NASDAQ: PLCE) is still spiking from last week, a 250%* move in total:
And of course, yesterday’s 400%* spike from Portage Biotech Inc. (NASDAQ: PRTG):
Confused by these moves??
My newest students are using AI to track the hottest stocks …
The patterns that we use to trade are always the same. It was only a matter of time until my AI trading bot caught on.
>> Use AI To Build Smart Positions On These Intense Runners <<
I’ve already traded a lot of the hottest tickers this week. And the catalyst behind these plays is out of control!
But it’s not always obvious for new traders as to why these plays are running. Let me shed some light on the issue:
Short-Squeeze Mania
Some of these stocks DO start to spike with a catalyst …
But they DON’T deserve to spike +400% or +500% intraday. It’s insanity.
Here’s what happens:
- A cheap stock starts to spike, perhaps with some bullish news, perhaps just for arbitrary reasons.
- Short sellers (a crowded strategy right now) recognize the bullish momentum on a crappy stock, and they build positions to bet it will go lower.
- Any subsequent bullish momentum could cause short sellers to panic and get out (buy to cover).
- That can turn into a domino effect of short sellers blowing up, which spikes the stock to insane heights.
- Short sellers could theoretically keep getting back in, and if they blow up again it spikes the stock even higher.
For example, this week, GLMD announced that it regained compliance with the NASDAQ listing requirements …
- So it’s a crappy stock that just managed to save its own butt from getting delisted.
After the announcement, it spiked from less than $4, to $23 per share.
These Are Short Squeezes!
It can be difficult because there isn’t an obvious catalyst that says, “Hey look, I’m a short squeeze”.
But we can see the illogical bullish momentum and we can see short sellers on social media buzzing around the stock. Take a look at the post below:
Down $179k … OUCH!
Don’t get sucked into the degenerate short-seller mindset. There’s no telling how high these stocks could spike.
Instead, join me and my students on the long side!
These stocks can follow our bullish patterns because people are predictable during times of high stress. Like when they’ve got a short position on a stock spiking +500%* …
These short sellers are creating the patterns that my students and I trade with.
In 2024, you can use AI to track these movements and build smart positions.
Cheers.
*Past performance does not indicate future results
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