We’ve seen short squeezes in major names like Trump Media & Technology Group Corp. (NASDAQ: DJT) (formerly the ticker DWAC) and Reddit, Inc. (NYSE: RDDT) this week.
We’re talking about gains of up to 105% and 62% in two days respectively.
Those are meaningful gains … And the good news is that short squeezes are a repeating phenomenon in the market that we can capitalize on.
So today I’ll give you the criteria to look for to leverage these wild moves…
As the week progresses, it’s even more important to be ready for these opportunities as my favorite day to capture them gets closer…
Learn how I capture massive upside moves in my special presentation TONIGHT — save your seat to join me LIVE!
How To Prepare For Short Squeeze Momentum
My favorite day of the week to catch short squeezes is on Friday.
That’s when short sellers like to exit positions before the risks of holding over the weekend.
And even though it’s only Wednesday — now’s the time to start scouting for stocks that meet the criteria for a Friday squeeze.
Here’s what I look for:
Hot Sector or Theme
A stock that’s ripe for a squeeze is often in alignment with a hot sector. Keep your radar tuned to the stocks and sectors making waves and getting attention…
DJT and RDDT dominated news headlines this week.
DJT finally went public as part of its Special Purpose Acquisition (SPAC) with DWAC. And RDDT had its IPO with a full army behind it.
Those are the kinds of stocks to watch for a potential squeeze. If it feels frothy like a lot of people have eyes on it — then you probably should too.
Spotting the Signs
Now what do we look for from these big gainers and hot stocks from here?
Multi-day holds and sudden shifts in volume. These are the breadcrumbs that lead us to potential trading opportunities.
Look at the volume increase in DJT over the last few days…
It held its gains and then skyrocketed on increased volume.
DJT chart: 5-day, 5-minute candle — courtesy of StocksToTrade.com
The lack of massive volume in RDDT makes me think that squeeze hasn’t yet been fully squozed. (As Matt Monaco says.) In other words, it’s just beginning…
If it can hold onto its gains and consolidate for a few more days, we could have a massive breakout on the horizon.
RDDT chart: 4-day, 5-minute candle — courtesy of StocksToTrade.com
Now, these two stocks are a lot different than the usual low-float stocks I like to focus on.
And there’s more to trading stocks with the potential for volatile moves than just chart levels and volume.
We want to build a compelling case for a trade…
And that’s what I’m going to help you do tonight during my special LIVE presentation…
I’ll show you the formula behind elusive moves that can trigger 5X, 10X, and even 100X gains in three days or LESS…
Real examples to prove that these parabolic breakouts have been happening in high frequency already in 2024…
PLUS: I’ll explain why I’m convinced we could be in store for an “overload” of these moves in the coming months…
The market is already hot and frothy. Learn how to make the most of opportunities with me tonight…
Sign up to save your seat NOW. This is completely LIVE so don’t miss it!
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade