In today’s unique “inverse market,” many classic plays are yielding unexpected results.
Yet, this Tuesday, we witnessed a textbook play.
If you’re trading the latest short squeeze craze, then you must be aware of these three essentials if your goal is to stay safe and profitable.
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Has the Order Been Restored?
The ticker symbol INM went from $0.45 on Monday to a high of $2.08.
The catalyst?
A classic pump and dump.
The stock was part of a blatant stock promotion…
Typically, these are easy shorts…but in an inverse market, easy shorts become brutal short squeezes.
Typically when a company hires a promoter their goal is simple: pump the stock up and then do an offering, a dilution event that usually tanks the stock price.
Not only did INM fade after it hit its highs…the company issued a 3M share stock offering in the after-hours…further sinking shares lower.
On Wednesday, shares opened at $0.74.
Source: StocksToTrade
Is this the end of the inverse market?
It’s hard to say, but markets are dynamic. Just like we had an overabundance of short sellers, you can also get an overabundance of longs.
That said, here are three essential keys for trading these short squeezes.
#1 Take Profits Before They Disappear
Sure, it looked like the longs were in the driver’s seat early on in INM on Tuesday…
But this was a blatant pump…
And I always say you can’t trust these companies.
In an inverse market, you can take these as longs, but you must be careful, and you must take profits quickly.
Those traders who bought into the hype and held likely got smoked.
#2 This Is Not The Market For Holding Overnights
When you’re dealing with the worst of the worst companies…then expect the worst.
Taking overnights during the week is a dangerous strategy in such a choppy and unstable market.
It’s better to trade scared than to trade greedy right now.
Trade scared so trading isn't so scary
— Timothy Sykes (@timothysykes) October 20, 2023
#3 Pay Attention To The Latest Trends
Always ask questions when you’re trading…
How is the market holding up?
Are we seeing clean runners or choppy breakdowns?
Traders tend to be short-term thinkers. If they see something working, they will try to milk it until it stops.
That’s why we see sympathy plays work so well.
That said, the best play is often no play in this market.
The spikers this week have been WEAK. And shorts are starting to get the upper hand again.
Just stubborn shorts have been getting wrecked for weeks…longs can easily get wrecked if they are stubborn.
That’s why it’s always essential to keep up with the latest trends, change, and adapt.
LEARN AND ADAPT!
— Timothy Sykes (@timothysykes) October 19, 2023
Ready to Master the Art of Short Squeezes? 📉🚀
In the wild “inverse market” we’re witnessing, classic strategies are backfiring. Like the case with INM, where a blatant pump and dump took traders for a wild ride.
In moments like this, can you confidently spot the red flags?
🔥 Blatant stock promotions, unexpected short squeezes, and stocks diving after hitting highs – this is the new trading landscape.
🔥 Holding overnight might have been your strategy, but in this volatile market, it’s a gamble.
🔥 Recognizing trends is paramount, especially when the spikes are weaker and short plays dominate.
But don’t fret; I’ve been there, and I’ve got the roadmap for you.
🚀 Join me in our exclusive live training sessions.
🚀 Unpack the dynamics of this unique market scenario in real-time.
🚀 Learn to pinpoint short-squeeze opportunities and to sidestep potential pitfalls.
🚀 Stay two steps ahead, anticipate market moves, and profit where others falter.
Do you have what it takes to adapt, evolve, and thrive in this roller-coaster market?
Your Blueprint for Trading Success in This Unpredictable Market is Here. Step Up!
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