Short squeezes are dominating this market. The battles are happening every day…
But only one side is winning.
Shorts keep getting destroyed while longs crush squeeze after squeeze.
Twin Vee PowerCats Co. (VEEE) just surged 900% in two days, from the $4s to the $48s (still holding near the highs as I write this).
Source: Stocks To Trade
$VEEE breakout to the $47s.
WHEWWWWW more money for longs, more pain for shorts! It’s the way of the world lately, so adapt or perish.
A 10X move on a boat manufacturer with a tiny float (pun intended).
Are you kidding me? This is one of the craziest short squeeze environments I’ve seen in my 27 years of trading.
It’s not difficult to find these moves, but you need to understand what’s happening first…
The 3 Keys To Crushing Squeezes
Shorts are doomed in this market, but so are longs who fail to capitalize on these absolute layups.
Opportunity cost is a serious problem. You’ll NEVER grow your account exponentially by watching VEEE run 900% from the sidelines.
I can’t stress how important this is NOW…
Usually, these parabolic squeezes top out after a few hours.
The fact that we’re seeing multi-day, 10X squeeze moves shows you just how juicy this market is for longs who know:
1. How to cut losses quickly.
2. How to sell into strength.
3. Where to find the best squeezes.
#1 is #1 for a reason. Cutting losses quickly is more than a trading rule to me: it’s a lifestyle.
I’ve passed it down to all of my top trading students…
Jack Kellogg wins less than 50% of the time, but he’s still made $27 million+ in career profits.
How does somebody who barely wins half his trades make that much?
His gains are much bigger than his losses because he cuts the losers immediately.
If you hold losers, you’ll never have the capital ready when the next VEEE sets up.
You have to make every decision you can before the trade even starts…
4 Questions To Ask Before Every Squeeze
You can’t go into these squeeze plays over-excited, heart beating out of your chest, palms sweaty, nervous about the results.
You’ll lose.
You need to know your levels, know your risk and know exactly how you’ll execute at every stage of the setup BEFORE you enter.
1. Where’s your entry?
2. Where’s your stop-loss?
3. At what price do you start selling into strength?
4. In what portions will you sell your shares?
If you can’t answer those questions, stay out of the trade until you can.
Every one of my millionaire students started out nervous and unprepared. They made bone-headed mistakes and took dumb losses.
But they put their heads down and studied my patterns until execution became automatic.
So the only question is how hard you’re willing to study … because this squeeze season won’t last forever.
If you have any questions, email me at [email protected].
Cheers,
Tim SykesEditor, Tim Sykes Daily
