Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE) has been on fire all week…
From Monday’s close until Thursday night, this penny stock returned 2,605%!!!*
And by the way, our proprietary trading system, Oracle, sent the bullish signal on FFIE every day last week since Monday.
Oracle is one of my secret weapons and produces winners for us every single day…
Candidates for short squeezes are names that are either oversold…
Or spikers that continue reaching new and new highs throughout the week, like FFIE.
When a stock continues to surge and maintain highs, shorts have nowhere to hide and can’t cover their positions. And when they try, it just adds fuel to the fire and strengthens the momentum in the stock.
It’s like a runaway train…
And Friday is extra special for short squeezes because that’s when even more shorts see that runaway train, panic and throw in the towel.
They cover their positions going into the weekend for fear of potential news that could impact their positions.
And that sends the stock even higher than before.
Because of this special situation, I created a weekly buy alert service just for Friday short squeezes.
Now let’s take a look at the 5-day chart for FFIE.
FFIE 5-Day Chart; 5-Minute Candles
As you can see it kept spiking throughout the week, riding higher and higher.
That’s how I knew we were in for a big buying opportunity on Friday.
See, FFIE is no altar boy…
It’s been plagued by negative news, from an embarrassing social media post to a letter from NASDAQ indicating non-compliance with listing requirements.
This is no long-term buy and hold investment… It’s a sketchy stock, which is exactly why investors took short positions in the first place.
And it’s exactly why, given its continual pops to new highs, I knew this was one to watch for a short squeeze buy on Friday.
I didn’t recommend buying into FFIE because I believe in this company’s future, or I like its financials, or anything like that…
This is entirely based on technicals.
Here are some of the details from my Weekly Squeeze Report that I sent out Thursday night:
Stock: Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE)
Entry: $2.25
Target: $3+
Stop: $2
My alert also includes an analysis that explains why I chose FFIE for a short squeeze play.
Now, I’ll be honest with you, not all of my ideas pan out. A lot of them do but I’m no fortune teller…Which is why I give exact instructions in my alerts, including a stop loss level.
Well I’m proud to say, this one worked out spectacularly.
Look how it soared way past our target and then pulled back…
FFIE Intraday Chart; 1-Minute Candles
FFIE behaved exactly as I expected…
And if you had gotten in at $2.25 and were lucky enough to ride the squeeze to its high of $3.89, you had a nice 73% gain.
Not too bad for a few hours’ work.
Don’t wanna miss out on an alert like this one?
If you want access to the Weekly Squeeze Report above, Oracle, our other proprietary service, BreakingNews Chat, five daily webinars, plus much more, you must be a subscriber to my Daily Income Trader system.
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Have a great day everyone. See you back here next week.
Tim Bohen
Lead Trainer, StocksToTrade