Our algorithm just flagged another high-potential trade [Trade of the Day Logo] Here's How I Scooped up 50% Profits in One Day Nate Bear, Lead Technical Tactician, Monument Traders Alliance [Nate Bear] Editors Note: Itâs do or die time for the Fed. August's PPI print sent the indexes soaring 5% in a matter of weeks. But thatâs nothing to whatâs coming down the pike on Friday, September 6, when we get the next employment report. Veteran traders Bryan Bottarelli and Karim Rahemtulla will be going live on Thursday, Aug. 22, at 2 p.m. EST to show you EXACTLY how to exploit this opportunity. Weâre not talking about a few percentage points. The last time this kind of event occurred, a backtested trade could have pulled in as much as 135.39% overnight! But with recent market volatility, this one could be a monster. [Click here to sign up for this FREE Bombshell Jobs Report Live Event on Thursday.]( -Ryan Fitzwater, Publisher --------------------------------------------------------------- Earlier today, I closed out Mondayâs [Profit Surge Trader]( pick for a 50% profit. However, this setup didnât follow my typical buy high sell higher approach. Instead, I took a cue from the markets and went for a stock with so much explosive potential it could work whether the indexes topped out or not. This might sound like the Holy Grail of trading, but Iâm going to show you that itâs much easier than you think. These types of stocks are everywhere. You just have to know what to look for. The Magic Words I want to ask you a questionâ¦what moves a stock? Well, we know that earnings certainly do. Pretty much any major data can do that. But what about technically speaking? What can force people to buy a stock even if they donât want to? Two words - Short Squeeze. We saw the power of this concept in 2021 when GameStop mania grabbed national attention. For those who arenât familiar with the concept, let me offer a quick explanation. People bet a stock will move lower by borrowing shares from their broker, selling them on the open market, and then buying them back at lower prices. This is known as short selling or simply shorting. To close out a short position, these trades buy back the stock. The difference between buying and shorting a stock is the potential loss. - When you buy a stock, the most you can lose is when the share price hits zero.
- However, thereâs no limit to how high a stock can go. So, a short seller's loss could be infinite. You can buy a stock without margin by using cash. However, you cannot short a stock without using whatâs known as margin. Margin is like a loan from the broker that allows you to buy or short stocks. Most traders use margin to gain leverage, where they can buy or short stock with a fraction of the total value, often as little as 25%. This can juice returns, but it will exacerbate losses. Brokers will initiate a âmargin callâ when a traderâs losses grow too large, forcing the trader to close their losing positions to stem the bleeding. When this happens to short sellers, they are forced to buy back shares to exit the trade. Doing this can cause the stockâs price to increase, forcing more margin calls on short sellers, creating a cascade of buying from people who bet against the stock. This is whatâs known as a short squeeze. Brokers can also induce a short squeeze by raising the borrowing cost, not allowing people to short overnight, or simply not having enough shares to borrow. Finding a Candidate The chances of a short squeeze depend largely on the percentage of shares sold short. The higher the percentage, the more potential traders can be squeezed. Nearly every stock has some amount of its shares sold short. Typically, itâs just a few percent. When you start getting into the double digits, and especially over 20%, thatâs when conditions begin to favor a short squeeze. Short squeeze data is available for free on many sites on the internet, such as Yahoo or Finviz. In the case of Forward Air Corporation (FWRD), it was around 20%. You may see sites reporting the percentage of shares sold short out of the total shares outstanding or the float. I use the float because thatâs the amount of shares available for active trading. Setting Up the Trade The core of a short squeeze setup is finding a place where traders have likely built up a short position while also making it easy to find where they placed their stop-loss orders. I have found this happens after a stock has run higher and begun to form a consolidation pattern. If its near 52-week or all-time highs, even better. As I said earlier, this one is different. Shares of FWRD broke down from $40 in March, bottoming out in May just above $10. Theyâve been rising steadily since then, finally reaching the highs put in back in late March from the initial bounce in the start of the downtrend. If you where a short seller betting on this stock to go lower, where would you put your stops? Most of us would agree that former highs would be a natural spot. But in this case, itâs even more prevalent because between there and $40 isnât a lot of price action. These âwindowsâ where very little occurred often provide little resistance to a stock whether itâs moving up or down. If I was a short seller, getting into that zone would make me nervous. However, weâre at recent highs, so you can bet traders will try to short here, hoping to catch the top. Taken together, this stock has the makings of a short squeeze. Now, as I mentioned earlier, this didnât follow my typical buy high, sell higher approach. That isnât exactly true. In reality, I simply calibrated my TPS setup to a lower timeframe work with this stock. You can see in the 5-minute chart above the setup includes the three elements of my TPS setup: - A clear up TREND
- A consolidation PATTERN
- And a SQUEEZE where the Bollinger Bands move inside the Keltner channel, as indicated by the red dots at the bottom So you see, while the type of stock I selected changed, the setup remained the same. ["And that's when I told Wall Street to shove it!"]( [Nate Bird]( Millionaire Trader introduces new strategy that completely flips what Wall Street has been preaching for decades. And now he's landing 100% gains within just 8 days in this chaotic market! [See the Hottest New Strategy]( The Next Steps Finding short-squeeze opportunities like FRWD can break through even the toughest markets. But here's the thing - spotting these setups consistently isn't easy. It requires a keen eye, years of experience, and the ability to analyze vast amounts of market data quickly. That's where cutting-edge technology comes into play. [Profit Surge Trader]( combines the power of AI with the skills and knowledge that helped me become a multi-millionaire trader. Our AI-powered scanner doesn't just look for short squeeze candidates. It scans for a variety of high-potential setups, including my signature TPS strategy, across all market conditions. Whether it's a volatile market or a steady climb, we're finding opportunities that others miss. Here's what you get when you join Profit Surge Trader: - Weekly AI-powered trade recommendations with 1000%+ gain potential
- Live trading sessions every Monday at 12 pm EST
- Exclusive access to my private trading vault and strategy reports
- A proven track record of outperforming the market Our members have seen gains as high as 1,129% in just two days. Don't miss out on the next big opportunity! Join [Profit Surge Trader]( now and start leveraging the power of AI to supercharge your trading. Limited time offer: Join today at a special discounted rate with a 365-day money-back guarantee. [Click Here to Claim Your AI Trading Edge Now]( - Nate Bear, Lead Technical Tactician [Zero Day Options Trade LIVE Tuesday, August 20 at 2 p.m. ET!]( [Secret Loophole]( When The Gov't Drops Economic Reports... This One Trade Could Have Made 253%... 327%... Even 383% gains... Enough for overnight payouts of $25,300... $32,700... heck even $38,300! [Discover The Zero Day Loophole (BEFORE Tues at 2 p.m. ET!)]( [Monument Traders Alliance] Monument Traders Alliance, LLC You are receiving this email because you subscribed to Trade of the Day.
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