Following up with my last post, I’d like to share with you ladies the list of stocks I have on my short squeeze list this week. They provide great swing trade ideas as well as trade ideas you might want to implement intraday.
PLEASE do your own due diligence. The worst thing newer traders can do (I’ve been there) is blindly enter along just because it kinda looks OK. Know why you get in, what your risk is and where you will take profit. These are just ideas for the week.
Looks great for a trigger this week. All the short sellers have been happy lining their pockets since mid-February and I think the short party has come to an end. Had a gap up and big surge up that was met with a huge “nuh uh, not today,” selling pressure. Whether it’s algos, a hedge fund manager who hates losing or a fat finger trade, doesn’t matter. We know the shorts piled in here and are feeling confident. But wait, uh oh. We had a nice pop back up and re-testing the high of that big gap up-shut down day. Looks like a great pattern to get long, perhaps this week. If it does, those shorts are gonna be in pain.
Next up, (gotta love that ticker symbol) THC.
Again, it was a short party for the last few months. Shorts were happy, taking profits, adding to their positions. Then May. Boom. I bet a lot of shorts got caught in that gap up and “doubled down” on their positions thinking that the gap up would get closed. They are really feeling the pain now as price is re-testing the resistance in that consolidation. If it breaks out above that red line, I’m definitely getting in.
Next, kind of strange one. Not sure what is going on here but you might want it on the radar. Not as clear cut as the last two but worth noting, and who knows, might even be a better candidate.
Here we have an uptrending stocks. Why are there so many shorts involved? I don’t know. Bad news? Lawsuit? Again, I dunno. But with that many short sellers, it’s in a pretty decent uptrend and looking to break out this week.
Last up for this week is RES.
Again, short sellers loved this stock since January. Piling in, taking profits all until April when the next pull back was a bit bigger than most short sellers wanted. Then a higher high formed and now we are in an uptrend. 57% short sellers in this! Wowzers. I think that big green day 4 bars from the right was the first day of a small squeeze and my thinking is that the short sellers piled in more which brought it down hard the next day. Then we had a small gap down and a doji. Buyers came back in and short sellers were feeling the heat and another ramp up on the most recent day. I think if it breaks that orange line, a lot of short sellers who piled in on the last false breakout will have had enough and scream “uncle!” And I’ll be there, cranking back on the Brett Hart sharpshooter collecting my benjies.
Hope this provides some of you guys with some trade ideas for the coming week – either swing or intraday.
It will be interesting to see how these stocks work out. It is a newer tactic I have started implementing with good success so I hope to see it continue.
Happy Sunday fun day. I just love running these screeners hungover.