Like I keep saying, even though the market is all over the place, I don’t care!
We have so many other trades ripe for the picking, and they have zero to do with the major indices.
Penny stocks, day trades, Friday afternoon/weekend plays, VWAP holds…
Tons!
And my latest pet project, which recently went live, is sending us stock picks every day at 2 pm ET. These are 24-hour movers that have been explosive!
Check out my brand new tool, the FLUX Algorithm. It’s giving us even more opportunities you don’t want to miss!
Another type of play that I love is the Short Squeeze…
This one is giving us a lot of love in the current market environment!
Don’t get me wrong…I have nothing against short sellers. Short selling is something I’ve always done and continue to do from time to time…
But taking the other side of the trade is lots of fun and can be extremely profitable, too.
And if you’re interested in short selling, remember it’s not for new traders. But if you’re seasoned and think you might be ready for it, check out my blog post on the subject.
Back to short squeezes…
Let me show you why you need to add them to your playbook.
Table of Contents
First, What Is a Short Squeeze?
A short squeeze happens when traders who are betting against a stock — short sellers — start to panic and rush to cover their positions.
That buying pressure pushes the stock even higher, creating a fast, aggressive move to the upside.
It’s a chain reaction. The stock moves up, shorts get squeezed out, and their exits cause even more buying.
That momentum creates some of the best opportunities for day traders, especially in volatile, low-float stocks.
How Do You Identify a Potential Short Squeeze?
Here’s what I look for…
Dubious News:
Stocks moving on weak or questionable catalysts are prime candidates….
I’m talking about “fluff” press releases with lots of buzzwords, vague partnerships, no real data…
Why do I look for this?
Because short sellers get overly confident, thinking, “This is garbage. It’s a perfect short.”
Low Float and High Volume:
A low float stock (which I consider under 10 million shares) with heavy volume can be a launchpad for significant price action.
These are the stocks with big float rotations. These trap shorts fast.
So, those are my tips for finding short squeezes…
But if you don’t want to do all that yourself, let me do it for you.
With my Squeeze Master Pro service, you get a short squeeze trade in your email inbox every Thursday night so you can take advantage on Friday.
You also get a video explaining in detail why I chose that ticker for a squeeze.
Some Recent Short Squeeze Winners I’ve Found
Below is an excerpt from the actual email sent in February for MicroAlgo Inc. (NASDAQ: MLGO).
MLGO Squeeze Excerpt; Squeeze Master Pro
And here’s what the stock did the next day…
MLGO One-Day, 5-Minute Candles Chart; SteadyTrade
Then on March 6th, I sent this one. Yes, when I find more than one potential squeeze, I send them both. This was Plan B for that day.
GV Squeeze Excerpt; Squeeze Master Pro
And I was right…
V One-Day, 5-Minute Candles Chart; SteadyTrade
Later in the month, there was this one…
IBO Squeeze Excerpt; Squeeze Master Pro
And IBO ran nicely the next day…
IBO One-Day, 5-Minute Candles Chart; SteadyTrade
Last Thursday evening, I sent my Squeeze Master Pro members this email
PRTG Squeeze Excerpt; Squeeze Master Pro
And PRTG did this on Friday…
PRTG One-Day, 5-Minute Candles Chart; SteadyTrade
I have plenty more examples I can show you, but I think you get the picture. I don’t nail the short squeeze every single week, but I do it more often than not!
My Final Thoughts…
Short squeezes are powerful ways to make quick gains and grow your account.
They offer explosive upside in a short window of time.
You don’t need to hold it for days or weeks. You’re looking to ride the momentum wave, capitalize on that panic cover, and take profits into the strength.
I showed you what to look for…That’s how I do it…
But let me do the heavy lifting for you.
With Squeeze Master Pro, you just have to wait for that email every Thursday and be ready to trade the next day. It’s that simple.
As a subscriber, you’ll also get The Short Squeeze Manifesto, my comprehensive guide on playing short squeezes, and my video series, Short Squeeze Academy.
Check out Squeeze Master Pro today! You don’t know what you might be missing!
And for more mentorship and trade ideas, subscribe to my StocksToTrade Advisory service.
You’ll receive a monthly newsletter with a list of my top picks, three weekly videos with my watchlists, bonus reports, and more.
Sign up for StocksToTrade Advisory right here!
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade