Investors have begun to go to great lengths to find any hint of what the next short squeeze with massive profit potential could be.
After the revival of the GameStop Corp. (GME) short squeeze last week, every trader wants to know which stock will be the next target for the Reddit retail investors.
The trend is far from over, and is likely gaining steam as more people realize the profit power retail investors can have in the right situation.
To gain insight on which stock will be the next that short squeeze hunters will pile into, some have even begun to track the number of comments regarding specific stocks on WallStreetBets – the popular Reddit forum that started the initial short squeezes in January.
Even with the massive influx of users to the subreddit making it somewhat more difficult to decipher which stocks will actually be bought, it can still be informative to analyze what retail investors are discussing.
Let’s take a look at the most discussed stocks on WallStreetBets…
Where’s the money?
The top dog among the Reddit retail crowd right now is Rocket Companies, Inc. (RKT) – parent company of Rocket Mortgage and Quicken Loans – that saw a massive spike before dropping again yesterday. Interest in the banking company remains high though, with 6,509 comments on Reddit mentioning the stock.
With concerns of a market bubble on the lips of so many talking heads these days, the SPDR 500 ETF Trust (SPY) has popped up as a candidate for a short squeeze. While only about 9% of SPDR shares are shorted, that could be enough to turn short sellers into buyers needing to cover their positions. And with 3,607 comments on Reddit, it could be gaining enough attention to make it happen.
While there are a number of other widely discussed stocks, none have the kind of momentum to be worthy of your attention at the moment.
So which companies are most likely to be the next to see a massive pop from a short squeeze?
Here’s what I think…
How do I get some?
Right now, as recovery stocks are beginning to heat up, one of my favorite short squeeze plays is Tanger Factory Outlet Centers, Inc. (SKT), in which we saw a huge amount call buyers on our scanner yesterday.
I also like Canoo Inc. (GOEV). The electric vehicle space has been getting crushed lately, but I don’t think anything is going to stop the trend. This is still a heavily shorted stock, and the recent drop may have just given short squeeze hunters an even better buying position.
But anyone with a Reddit account can see what’s being discussed and take a shot in the dark at a potential short squeeze.
To really know where the best profit potential lies, you need to know where the money is flowing.
And I’ve got just the tool…
Follow the Money
The secret to the biggest, fastest moving plays in the market isn’t complicated. Heavily shorted stocks with aggressive buyers will see huge spikes. I’m talking the chance to turn $1,000 into $9,500… $12,140… even $17,570 in peak gains in just a few weeks’ time.
Using the full suite of tools in my S.C.A.N. system, I’m able to track where the biggest money flows from traders are moving. I see every move they make, the moment they make them.
And when the time is right, I send subscribers of Super Squeeze Profits a recommendation on the exact trade to enter to take advantage.
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In the Spotlight: Economic Recovery vs. Growth Stocks
We’ve seen a big rotation out of some of the best performing stocks of the last year as hopes for an economic recovery grow.
Investors with tech-heavy portfolios in particular are feeling the pain, as even the blue-chip stocks in the sector have sunk in recent days.
But the selling is likely just the cyclical movement of the market, and the drop today could mean big profits for tomorrow. I’ve got my eye on several stocks that have taken a beating this week that could be primed for a huge comeback.
And when the time is right, I’ll let you know the exact plays to make.