Did you see it? It was absolutely gorgeous.
Thanks to short sellers, it was almost like looking into a crystal ball…
The crazy thing is, these kinds of moves happen for one reason.
And when they do, I encourage you to focus on only one stock…
Remember This Chart
Check out the FGI Industries Ltd. (FGI) chart from last week:
Source: Stocks To Trade
FGI, 8/13/26, 1-min candles, earnings winner, short squeeze.
FGI was the supernova of the day for two reasons:
1. It was an earnings winner after the company reported strong Q2 earnings after-hours.
2. Predictable short sellers got squeezed like the bitter lemons they are…
When a stock runs like FGI did, I look for four things…
How To Trade High-of-Day Breakout Runners
I was late, but thanks to the predictable short sellers it was a nice and easy midday breakout.
Here’s my trade…
Source: Stocks To Trade
FGI, 8/13/26, 1-min candles, 11:45 a.m. to 12:15 p.m., easy breakout play.
To trade these summer supernova short squeezes, keep looking for high-of-day breakout runners.
Be sure they meet the following criteria:
1. Big Volume: FGI traded 99M shares by 3:30 p.m. Its average 60D volume is roughly 50K shares.
2. News: FGI reported strong Q2 earnings.
3. Low Float: with roughly 519K publicly traded shares, FGI is a micro-float primed for a short squeeze.
4. Convincing Breakouts Over Previous Highs: Each leg up, FGI showed it could hold and consolidate. Even though I was late, that gave me confidence.
Based on the chart above of my trade, I did EXACTLY what I’d planned. My goal was to make $0.50 to $0.75 a share (I made $0.86 a share).
If you are serious about trading, you MUST understand risk and reward and trade accordingly. I was happy to take the single.
Focus on ONE Stock
When a stock is moving like FGI did, I stop watching any other stock.
I focus on ONE stock only.
Understand that watching small percent gainers is irrelevant when there are supernovas to watch.
You don’t even need to be trading them yet.
If you’re not ready, just watch because the more screen time you put in … the easier it is to recognize when you DO have money on the line.
If you have any questions, email me at SykesDaily@BanyanHill.com.
Cheers,
Tim Sykes
Editor, Tim Sykes Daily
