Get started

Shortsqueeze

AFRM - Might squeeze soon Got sold hard yesterday into the supply zone, despite good news, but that proved to be backtest of breakout level at 16, which was held and it got yesterday's gains back. Two overhead levels to watch, first at 600DMA around 19-20. Second, is overhead supply at 22. IMO yesterday's sell-off was test of 200DMA and today's PA tells us that bulls like the price even at that level, so 23 zone is a given. what happens there and how you react might be critical. Ideal long trade was on 06/09 to buy at 16.5, but tomorrow might be another chance to add around 18. Then next stop will be 23 or 40 Factors favor bulls right now. I think this will soar high, but needs pitstops along the way. Bear case: Rejection of 20 will test 16 again and then 14.
NASDAQ:AFRMLong
by CheelooTrader
SPCE ? Consolidation ? Short Squeeze ?SPCE is at a line in the sand of the chaos of the market. On the 4H chart, price has bottomed and might be making a reversal pivot as supported by a rising line segment on the RSI out of the oversold zone. The though of a reversal is also supported by price crossing over the POC line of the volume profile. Price above the POC line shows buyers are dominating although some of the buyers are buying to cover shorts. Below the POC line, sellers are dominating. If SPCE can get a trajectory upward, a short squeeze could ignite a launch. ( Fundamentally, SPCE is dying and waiting for Eton Musk to make a good offer.) This could be worth watching with an alert set 10% above the current price and a volume alert at 50% above the moving average 20-day volume.
NYSE:SPCE
by AwesomeAvani
1
The GameStop Short SqueezeThe GameStop short squeeze that took place in January 2021 was a pivotal event in the history of financial markets, as it brought to light the power of social media and the complex dynamics between retail investors and institutional players. This unprecedented event, fueled by a group of retail investors on the subreddit r/WallStreetBets, led to the rapid rise of GameStop's share price and significant losses for some hedge funds that had bet against the company. The GameStop saga revealed underlying issues related to market manipulation, fairness, and the need for regulatory reform. The Power of Social Media The GameStop short squeeze highlighted the extraordinary impact of social media on financial markets. Reddit's r/WallStreetBets, an online community where members share investment ideas, became a powerful force that drove up the share price of GameStop and other heavily shorted stocks. These retail investors, driven by a combination of a desire for profit and a disdain for Wall Street's elite, banded together to challenge the status quo and fight against the hedge funds' dominance. The internet played a significant role in enabling and facilitating this market event. Online platforms provided retail investors with easy access to information, while social media allowed them to communicate and coordinate their actions. This demonstrated how the internet has leveled the playing field between retail investors and institutional players, at least in terms of access to information and the ability to influence market movements. Market Manipulation and Fairness The GameStop short squeeze raised questions about market manipulation and the fairness of the market for all participants. Some critics argued that the actions of r/WallStreetBets members amounted to market manipulation, as they actively promoted GameStop stock with the intent to drive up the share price and force a short squeeze. However, others pointed out that hedge funds often engage in similar tactics to profit from their short positions and that the retail investors were merely employing the same strategies used by professional traders. The controversy surrounding the trading platform Robinhood further fueled the debate on market fairness. Amidst the volatility, Robinhood and other platforms limited trading in GameStop and other volatile stocks, which sparked accusations of market manipulation and collusion with hedge funds. Critics argued that these restrictions unfairly disadvantaged retail investors, while Robinhood maintained that the limitations were necessary to manage risk and comply with regulatory requirements. Regulatory Repercussions and Reforms The GameStop short squeeze caught the attention of regulators and lawmakers, prompting Congressional hearings to address the situation and discuss potential reforms. During the hearings, various stakeholders, including representatives from trading platforms, hedge funds, and retail investors, provided testimony and perspectives on the events that transpired. The hearings underscored the need for regulatory reform to protect retail investors and ensure market fairness. Some of the proposed reforms included increased transparency in short selling, restrictions on high-frequency trading, and measures to enhance market stability. Additionally, the hearings highlighted the need for better investor education to ensure that retail investors are aware of the risks associated with participating in such events. Lessons Learned While some retail investors profited from the GameStop surge, others were left holding the bag as the stock price eventually declined. The episode serves as a cautionary tale about the potential risks and rewards of participating in market events driven by social media and mass psychology. The short squeeze underscored the importance of understanding the fundamentals of investing, as well as the need for sound risk management practices. Conclusion The GameStop short squeeze will be remembered as a defining moment in financial history, as it not only showcased the power of social media and the internet in influencing financial markets, but also exposed the complex dynamics between retail investors and institutional players. The event has led to increased scrutiny of market practices, regulatory reform, and an ongoing debate about the fairness of the market for all participants. The repercussions of the GameStop saga are likely to shape future policy decisions and the evolution of the financial landscape. The GameStop short squeeze has set a precedent for the role of social media and online communities in shaping financial markets. As the internet continues to democratize access to information and level the playing field for investors, it is essential for regulators, policymakers, and market participants to adapt to these changes and ensure a fair and stable financial environment. In doing so, they will not only protect the interests of all market participants but also foster trust and confidence in the markets for years to come.
NYSE:GME
by financialflagship
4
SIGA a Biotech breakout last summer- then breakdown ? reversalAs shown on the daily chart dating back to last summer SIGA has been on a persistent decline since the cooling down from the parabolic breakout last summer. Is there a repeat in the picture? Fundamentally, earnings continue to be weak. much of the stock is held by insiders and the whole monkey pox thing is settled down although the main product may have use in malaria, leper's disease or whatever other orphan use it has indications by the FDA and its foreign counterparts. The technical picture is that it is sitting just above support shown by the Supply Demand Zone indicator of Luxalgo having double bottomed and now a bit above it. The volume indicator shows a mild increase in buying volume in the past couple of weeks. Price is more than one standard deviation below the long-term anchored VWAP in the undervalued over-sold zone. With a weak biotechnology company where insiders have a fair portion of the shares, manipulation can occur. Once a price rise issues short sellers will buy to cover, and retail traders will jump on board, insiders will "manufacture" a catalyst to prime the pump further. At some point, the run-up will stall, and the implode itself. I will get on the ride early, a biotechnology speculative trades are in my playbook. The stop loss here is below the demand zone while the target is the 50% retracement of the downtrend drawn onto the chart by the Fibonacci Retracement tool.
NASDAQ:SIGALong
by AwesomeAvani
Bitcoin, Broadening Pattern BreakoutAs you can see in the chart, this is a very simple idea, this is a broadening pattern breakout that signals the continuation of the uptrend. Then, we have the 30k level that is a major resistance where a lot of people is going to open short positions which can result in big liquidations that will push the price higher. To that we have to add that new money keeps being injected in the economy and that Tether market cap is going up, new money is coming in to the market, today 500 millions were injected in to the tether supply, which is another thing that indicates uptrend continuation. I hope that you found this idea useful, I will be happy to see your opinion in the comments. Don't forget to give me a boost.
Long
by piccard54
PBYI a speculative biotech LONGPBYI according to the recent earnings as no earnings nor revenue. This is typical in the biotechnology sector. This 4H chart shows a consistent downtrend with a couple of minor pullback corrections shown with a Doji followed by a green engulfing candle but with low volume and the K/D lines of the MACD did not on the histogram. In the present, the volume pattern shows relatively high selling volume then reversed to buying volume which is above the moving 50 period average shown as the green horizontal line. Moreover, in this episode, the MACD/Signal lines have crossed and curled up. The histogram has sent positive after being negative since early February. I interpret this as being an early reversal now ripe for entry. Just like in nature, the early bird gets the worm. Buyer beware biotechnology stocks that have market cap based on high potentials are speculative but potentially offer high rewards. I see a reasonable target as a 50% retracement of the downturn or about $ 3.50 ( this is less than the upside of some analysts ) PGYI is up 10% today. the train is leaving the station with momentum. I see a potential takeover or a low float short squeeze. (See also the link below )
NASDAQ:PBYILong
by AwesomeAvani
Bitcoin Bull Trap??? Bitcoin blasted thru all bunch of major resistance then sells off like crazy.... Bull Trap!!? Bitcoin needs to hold the yellow trend line, at least. Not surprised to see Bitcoin doing this here. Upon all seriousness the markets are still uncertain due to the Macro economic environment. I think the reason for the BTC upside is the fact that a lot of Shorts got liquidated (Short Squeeze) plus there are some positive stuff happening in Crypto in other countries. All this Celsius, BlokFi, FTX, Voyager, 3 Arrows Capital and probably a bunch I missed, has already been priced in IMO. This is a very interesting time in the world with one of the biggest shift in monetary policy we will ever see in our life times. Any who, hope you are positioned well as we head into uncharted territory as the World is changing faster and faster by the days passing. Good Luck Out There!
by BuddaCo_LifeStyle
2