4 Stocks The Shorts Could Take Down

By Updated on July 25, 2023

4 Stocks The Shorts Could Take Down Thumbnail

Picking up pennies in front of a steamroller…

That’s the life of a short seller in this market.

On most days, they’re collecting money left and right.

But play the game long enough, and you’ll eventually get steamrolled…losing a substantial amount of capital or all your trading funds.

The problem with short sellers nowadays is that it’s becoming a crowded field…

In other words, to capture the gains they were once accustomed to, they have to start earlier, and, in many cases, their overaggressive behavior is creating some monster trading opportunities for longs like myself.

But there comes a time when shorts eventually gain control, and longs lose interest.

And I’m starting to see it now in four stock runners…

Number #1: Gorilla Technology Group (NASD: GRRR)

Over the last month, the ticker GRRR rose from a low of $1.82 to a high of $6.98…it’s now struggling to stay above $2.

It’s been heavily pumped by promoters and has had a series of press releases (PR) over the last month.

The latest PR was on July 20th, when the company announced a strategic relationship with British Telecom for an AI-powered innovative port solution.

Source: StocksToTrade

I traded it that day and eeked out a 3.6% winner.

However, there’s one thing I’m noticing that is making me less interested.

The bounces are getting weaker and weaker. 

You would have thought the British Telecom news would have sparked a significant rally…but it didn’t.

It appears that the shorts are back in control with this stock.

However, many of them probably got burned from shorting at $2 to $6…they’re not aggressive…and why the short is working.

I have it on my watchlist as a potentially long, but it has to be an EXTREME panic for me to get interested because the stock is slowly grinding lower.

Number #2: GreenPower Motor Company (NASD: GP)

This stock posted what I thought were solid corporate earnings. The company lost less than the previous year, – $0.64 vs. -$0.69.

Unlike the GRRR chart…this one isn’t nearly as ugly.

However, interest seems to be declining.

How do I know?

If you look at the trading volume, you’ll see it’s not getting nearly the amount of action as it was a week ago.

Moreover, it is experiencing higher lows.

In other words, the daily highs have been lower than the previous…

Which has been ongoing for about a week now.

Source: StocksToTrade

Number #3: D-Wave Quantum Inc. (NYSE: QBTS)

This former SPAC has moved from a low of $1.53 to a high of $3.20 over the last month.

It has been mainly a sympathy play to IONQ, but it is losing momentum like the other stocks on the list.

Source: StocksToTrade

For the downward trend to reverse, I’d like to see it hold above $2.50.

I would like to see this go below $2 in terms of panic dip buy opportunities.

There’s no reason to chase or get involved when a stock is experiencing relative weakness.

Number #4: Knightscope Inc. (NASD: KSCP)

Source: StocksToTrade

This is probably the crappiest stock on the list…

But it did rally by 20% yesterday.


Because of overaggressive shorts.

Despite the stock trading well below its recent highs of $2.34…

Shorts are not out of the water yet.

In fact, if this can get above the $1.50-$1.60 range…there’s a chance it will make another run.

However, it doesn’t, there’s a chance to return to the $1.10s.

I’d be interested in a panic below $1.

But again, there’s no need to rush any of these plays.

Final Word

Fundamentals do matter in the long term.

However, they don’t matter as much when you’re in a trade for a few minutes or hours.

Price action is king for the short-term trader.

I’m losing faith in the four stocks mentioned above because the rallies are weakening.

Moreover, it’s another sign of a severely overbought market environment.

If you’d like to receive free trade ideas from my team…

It’s simple: sign up here. 


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Comments (1)
Author imageTimothy Sykes
Hey Everyone,

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