Every single day.
I’ve been going on about the big premarket spikers and how important it is to get up early and partake (or at least watch).
But there’s another part of these big moves you should understand.
Especially if you don’t like to wake up at 4:00 a.m. ET (I struggle with it when I’m in the U.S.).
What happens when a stock spikes in premarket and doesn’t immediately fail?
Mind you, it doesn’t matter if the spike is from a real catalyst or a fluff press release.
And it doesn’t matter whether some chat guy in a shady Discord room spiked it another 50% in two minutes.
Because these big moves attract two opposing mindsets.
And together they create…
The Daily Squeeze
You know I’m watching the top percent gainers in premarket.
All the big movers bring attention.
But not all traders have the same desires about the price action.
Instead, they’re on opposing sides of a pitched battle.
On the one hand, there are short sellers who laugh at the press release and say…
“This stock doesn’t deserve to be up 50% on the day. It doesn’t even deserve to exist.”
On the other side, you have the longs who ride the momentum up, hoping to catch some small piece of the move.
But what’s been happening the past several weeks is CRAZY. Like this…
Julong Holding Limited (JLHL) opened in the $3s on July 9.
As if the afternoon squeeze to $15 wasn’t painful enough for short sellers…
In after-hours trading, JLHL squeezed to $31.67 in roughly 15 minutes…
Source: Stocks To Trade
JLHL, 2-day, 1-min candle, EPIC short squeeze.
That’s a CRAZY 749% in ONE day!
JLHL is just one example.
Again, this is happening every day right now.
Every short squeeze isn’t as big as what happened on JLHL. But the frequency this summer is speeding up.
Even on market down days, we’re seeing them.
Could This Be a Summer Melt-Up?
It’s pretty crazy, if you think about it.
I expected June to be busy, with the end of the PDT. But we’re one-third of the way through July and STILL seeing squeezes like JLHL.
I’ve always thanked toxic short sellers for their sacrifice.
But it seems like this summer there’s another layer to it.
It’s going to be a “target-rich” environment.
Fire at will.
Remember, in the past few months, we’ve seen epic short squeezes like SmartBird Inc (BIRD), which I wrote about here.
I also highlighted 4 lessons from the Avis Budget Group Inc. (CAR) short squeeze here.
And the list just goes on and on.
We’re literally seeing short squeezes every day.
Study up on short squeezes because the opportunities are endless.
If you have any questions, email me at SykesDaily@BanyanHill.com.
Cheers,
Tim Sykes
Editor, Tim Sykes Daily
