If you've been following me for a while, you know Fridays are one of my favorite days to trade…
Why?
Because short-sellers are likely to exit their positions before the weekend. You are charged a fee to borrow shares as a short-seller — that's why a lot of people get out on Friday to avoid paying those weekend fees.
But why should you care?
Because it enhances the chances for some massive short squeeze moves.
And with the number of stocks on my radar that are 'hanging around,' I think today could have some epic opportunities…
So here's what I'm watching today for potential squeezes and the key levels I think are important.
Now, when I say a stock's 'hanging around,' I know people want a definition … What does it mean for a stock to 'hang around?' I don't have an exact formula...
But when a stock shoots up on day one and can consolidate sideways without breaking down, that keeps it on people's radar.
Like I wrote here yesterday, the longer a stock holds up without the big pullback shorts are looking for, the more nervous they get…
That's why I think multi-day runners offer better opportunities than day one spikers. And it's proven by recent runners…
I mean, look at Houston American Energy Corp. (NASDAQ: HUSA). It started its run back on May 27. When it made new highs on Wednesday, it was on day seven of its run. Yesterday it held up OK. HUSA could get interesting if it breaks above $8 and $8.50.
Yesterday AeroClean Technologies, Inc. (NASDAQ: AERC) had a nice squeeze over $10 and hit $12. When it first ran on Monday, everyone thought they missed the move...
But there were multiple chances to ride the momentum in AERC. And if it continues to hang around today, look for breaks of whole dollar and half dollar levels all the way up.
JanOne Inc. (NASDAQ: JAN) had its first massive gap up on May 31 after announcing
an asset sale that injected $13.5 million into the company. But the stock couldn't hold up and had two massive red days.
But once the stock was loaded with shorts, the company dropped another PR.
That's when things got interesting and the squeeze was on. Now JAN has formed a multi-day resistance level at $5. If we get a breakout over that level we could see more squeeze.
That's all you need to get started on your journey to financial freedom.
And it all starts with Tim Sykes' #1 pattern for beginners.
HINT: This is the same pattern Sykes used to make more money in one day than what his parents made in an entire year…. All while he was in high school.
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