When short sellers see a stock that’s up huge without a press release, they think there’s no reason for the move…
They start aggressively shorting it thinking it’s up too much.
But that’s exactly what creates the giant short squeezes like the one we saw yesterday…
And if you had the right tools, you would’ve known that there was news on the stock.
That puts you ahead of most unprepared traders…
I wasn’t even around yesterday morning to tell my subscribers about the potential for this stock — I was busy with a family commitment…
But with these tools, you don’t even need me.
Check out this wild 800%+ gainer and the news that pushed it…
The Reason Behind POL’s 800% Gain
Polished.com Inc. (AMEX: POL) operates an e-commerce platform that sells appliances and furniture — not exactly what you’d call a hot sector…
And if you looked on Yahoo! Finance or Finviz, you wouldn’t have seen any press releases causing it to spike in premarket.
So if you’re uninformed, it looked like POL was up for no reason. That wasn’t the case…
In premarket, the Breaking News Chat team alerted POL as a gainer with an SEC filing…
A concerned shareholder was requesting collaboration with other investors — check out the SEC filing here.
But remember, since most traders don’t do research or have tools like Breaking News Chat, they wouldn’t have known about that SEC filing that gave shareholders hope…
That’s why short sellers pushed the stock down at the open.
POL was also on Oracle with a signal at $2.37.
And if you have Oracle, you know the signal hit as part of the first big candle of the short squeeze.
Oracle knows the squeeze trigger points … So that’s two examples of how the right tools can help you find opportunities…
POL chart: 1-day, 5-minute candle — courtesy of StocksToTrade.com
Staying on top of the news is one of the crucial lessons I shared earlier this week to help you master this market…
POL also has the beaten-down daily chart I said to look for as we head into the holiday trading season and the January effect.
POL chart: 6-month, daily candle — courtesy of StocksToTrade.com
Use the free tools available to you like the lessons I share in this newsletter…
And combine them with tech tools like the Breaking News Chat and Oracle to make the most of this wild market.
Keep up with the hottest tips and tricks for any market in our live training sessions — sign up for the next one here!
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade