Popular
The CappThesis Market Strength Indicator: What It’s Telling...
These 25 Stocks Drive the Market: Are You...
What Happens Next for the S&P 500? Pick...
3 Stocks Seasoned Investors Should Watch
Here’s What’s Fueling the Moves in Bitcoin, Gaming,...
Crypto Market Recap: Bitcoin Hits All-Time High as...
DoD Invests US$400 Million in Rare Earth Firm...
JZR Gold Inc. Announces Private Placement Offering of...
Top 5 Canadian Mining Stocks This Week: Avanti...
How I Triple My Returns With 3x Leveraged...
  • Home
HotInvestingPilots.com
  • Politics
  • World News
  • Stock
  • Investing
Stock

Short Squeezes Start Here

by July 15, 2022
written by July 15, 2022

Take a look at the chart below and tell me what you see…

I earned my first $1 million trading this exact pattern.

In fact, this pattern is so powerful that within the last few weeks, four of my millionaire students made almost $1 million combined in one stock within a matter of days.

And if you know how to identify them they could potentially mean huge profits for you.

How do you spot these career-making trades?

Short Float %

Many traders look at the short float percentage as a way to gauge the potential for a short squeeze.

At its core, the short float percentage tells you the proportion of shares sold short to the total shares available to trade.

For example, if there are 10,000,000 shares to trade (float) and 1,000,000 of them are sold short, you have a 10% short float.

Floatchecker.com is a great resource to look up this information. The site lists the float, short percentage of float, and outstanding shares from several sources.

However, if you look at the information above for Tough Built Industries (NASDAQ: TBLT), you’ll immediately see a problem.

While most of the sites have similar outstanding shares, the other numbers vary wildly.

This is caused by definitional problems and calculations.

To start with, most sites should get the outstanding shares correct. That’s the number of shares that currently exist.

The float is the amount available to trade, excluding shares closely held by insiders and board members. It’s more indicative of what publicly trades.

Most places will have the same value for the float.

The short percentage of float gets tricky.

Short interest is reported roughly every two weeks. From there, sites may try to calculate the current short float based on transactions or other methods.

I find that it’s best to take the information with a grain of salt.

With TBLT, it’s safe to say that there are a ton of traders short the stock.

Larger cap companies will tend to have numbers closer to one another.

Now, you may be wondering how it’s possible for more shares to be shorted than are available for trading.

That comes down to leverage and borrowing. Brokers will allow for traders to sell shares without actually owning them, known as a ‘naked’ short sale.

Additionally, the time between the transaction and settlement date can also cause discrepancies.

The best way to think about it, if all the sites say the short interest percentage is high, it’s probably high.

Now, let me show you a different way to think about short interest.

Look For Massive Flops

Take a look at the chart below for Lytus Technologies Holdings Ptv Ltd (NASDAQ: LYT).

This is the stock that helped Jack Kellogg, Tim Lento, Jack Schwartz, and Kyle Williams all harvest huge profits on the short side when it crashed.

But they weren’t the only ones.

Whenever a stock gets a huge selloff, quickly or over time, you start to see short sellers pile up.

Keep in mind, there’s a limit to this as short selling below $5.00 carries different margin requirements, and most folks simply won’t short stocks below $1.00.

Nonetheless, these former runners that crashed offer up some sweet bounces.

In fact, that’s exactly how I found my setup in TDH Holdings Inc. (NASDAQ: PETZ).

The stock was a former runner that recently saw interest as news hit after hours on Tuesday that the company was cancelling a share offering.

With the shorts getting squeezed in the after hours, I used the early morning strength the next day to enter my trade, actually cutting it off early before the real squeeze happened.

Even the pullback from the prior day’s after hours run created the potential for a short squeeze if buyers would step up to the plate.

While it got a decent pop in the morning, the real squeeze came on heavy volume at the end of the day.

Final Thoughts

Practice looking for setups like these where shorts build up. Then watch and see how, where, and when they get pushed out of their positions.

A great place to start is by identifying my #1 pattern.

 

–Tim

The post Short Squeezes Start Here appeared first on Timothy Sykes.

0 comment
0
FacebookTwitterPinterestEmail

previous post
China’s Economy Continues to Crumble Despite Biden’s Pro-China Policies
next post
Joe Biden Gets Lost Leaving the Stage Again After Coughing Fit (VIDEO)

Related Articles

The CappThesis Market Strength Indicator: What It’s Telling...

July 12, 2025

These 25 Stocks Drive the Market: Are You...

July 12, 2025

What Happens Next for the S&P 500? Pick...

July 12, 2025

3 Stocks Seasoned Investors Should Watch

July 12, 2025

Here’s What’s Fueling the Moves in Bitcoin, Gaming,...

July 12, 2025

How I Triple My Returns With 3x Leveraged...

July 11, 2025

How to Find Compelling Charts in Every Sector

July 11, 2025

Breakout Watch: One Stock in Each Sector to...

July 10, 2025

Small Caps Are Rotating In — Here’s Why...

July 10, 2025

Want Faster, Lower Risk Trades? Use This Setup

July 10, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • The CappThesis Market Strength Indicator: What It’s Telling Us Now

    July 12, 2025
  • These 25 Stocks Drive the Market: Are You Watching Them?

    July 12, 2025
  • What Happens Next for the S&P 500? Pick Your Path!

    July 12, 2025
  • 3 Stocks Seasoned Investors Should Watch

    July 12, 2025
  • Here’s What’s Fueling the Moves in Bitcoin, Gaming, and Metals

    July 12, 2025
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 hotinvestingpilots.com | All Rights Reserved

HotInvestingPilots.com
  • Politics
  • World News
  • Stock
  • Investing