If you want to thrive in this market, you need to master the art of adaptation.
Right now, opportunities are everywhere…
Yet, I often get asked why I’m so focused on these specific plays.
The answer is simple, trading is about following the money and adapting based on what the market gives me.
Over the last several weeks, I’ve been doing exactly that.
So today, I’ll explain why it’s vital for you to focus on these specific plays…
And how they have been offering me and many of my traders amazing opportunities.
Let’s dive in!
Adapt Or Perish
Many of us may hate change, I get that…
But let’s go back in time for just a quick second.
Back in the 1920s, Hollywood introduced “talkies” which added sound to movies and stars thought it was just a fad.
Guess what, they were dead wrong and their careers went bust.
The same thing for the Ford Model T, a century ago, a lot of people thought it was just a fad and wouldn’t replace horses and carriages…
But guess what, it did.
Just like A.I., many individuals thought it would fade out by now, but it hasn’t.
You can’t control what happens in life, and you can’t control what happens in the market.
That’s the key here…
You need to understand why these patterns are popping up so you can try and capitalize on them…
And most importantly, so you don’t LOSE big.
The market doesn’t have to be a certain way…
Or even stay a certain way.
The market doesn’t care what you think, or how you feel…
So you have to remember that the market is always right and we have to live with that.
I’m always adapting based on what the market gives me, which has helped me capitalize on several plays we’re seeing right now.
Let me show you what I mean.
Squeeze Plays Are Where It’s At
If you look at the major sectors over the last few weeks, they haven’t moved much…
- SPY is up 0.96% over the last month…
- DIA is up 0.72% over the last month…
- QQQ is up 1.57% over the last month…
And over the last several weeks I keep bringing up these short squeezes and how to look for them.
The reason I keep repeating this is because this is where the money is…
Right now there are way too many short sellers out there, and I’m incredibly grateful for them because they are spiking these stocks more than any promoter ever did…
Promoters did it gradually, they didn’t want to get investigated…
But short sellers don’t want to spike up stocks, they are doing it inadvertently because there are so many of them.
This is setting us up with these amazing squeezes that are skyrocketing 100%, 200%, or even more in a single day!
Let’s look at Avinger, Inc. (NASDAQ: AVGR) as this is a perfect example to help you better understand what’s happening in this market…
Take a look at this chart…
Source: StocksToTrade
Overall the chart looked hideous, until the last few days, but that’s what we’re seeing!
These crappy companies are coming back to life!
I don’t want you to think that these stocks will continue to run for an extended period of time…
History shows they won’t…
But if you want to capitalize on these plays as they happen, you need to be focused on looking for those big percent gainers.
Let’s take a deeper look at what happened over the last few days with AVGR…
Source: StocksToTrade
In the chart above, take a look at where I drew those white circles…
Short sellers thought they won the battle, but then you can see AVGR continued to squeeze higher during the after-hours.
That’s how aggressive they are being right now…
But those are the opportunities you want to keep a close eye on as you can’t predict when they’ll happen…
I unfortunately missed the spike into the close on Tuesday, but I wanted to share this with you to give you a better understanding of what’s happening…
So make sure you’re constantly scanning the market for these short-squeeze plays.
Now let’s take a look at MicroCloud Hologram Inc. (NASDAQ: HOLO)
Source: StocksToTrade
Same thing…
An early morning runner that squeezed higher…
And I was able to take advantage of that early morning squeeze.
You’ll notice that some squeezes last longer than others, which is fine…
But remember to just take the meat of the move and get out, because eventually, these short sellers will be right.
iCoreConnect Inc. (NASDAQ: ICCT) the same thing happened here…
Source: StocksToTrade
ICCT was squeezed from roughly $8 per share to over $20!
That’s the beautiful thing about these plays, you never really know how far these stocks can go…
AVGR went from nearly $4 per share to over $12, that’s over a 200% move!
These squeezes are happening so frequently that I don’t expect this to cool off anytime soon.
Every morning I’m focusing on the premarket spikers near the market open.
I’m not looking to make a lot with my trades…
I’m simply looking to take the meat of the move.
There’s a lot to study here, but if you want to find the same plays as myself and many of my students…
You need to be prepared and most importantly, you need to take advantage of these FREE trading sessions.
Keep practicing and studying…
I’ll see you in chat.
-Tim
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