Profit Pregame

Why the Two Biggest Short Squeeze Stocks are Primed to Explode

Some of the Market’s Most Heavily Shorted Stocks Get a Renewed Boost

Retail investors’ favorite short squeeze targets are making moves that could end up dwarfing the huge moves from January.

What’s happening?

Over the last three trading days, we’ve seen a major resurgence in the short squeezes of the two stocks that started the craze earlier this year.

Both GameStop Corp. (GME) and AMC Entertainment Holdings, Inc. (AMC) have been skyrocketing since Monday in the latest battle between the hedge funds that have heavily shorted the stocks and investors looking to force a short squeeze.

And right now, the hedge funds are losing. According to analytics firm Ortex, investors that are short on GameStop and AMC lost $754 million on Tuesday alone as the stocks boomed.

That massive figure doesn’t even take into account the even larger gains both stocks experienced on Wednesday.

As of May 18, short sellers were already estimated to be sitting on more than $1 billion in losses.

Retail investors on popular online platforms like Reddit are speculating that the hedge funds have over-leveraged their short positions, and that this could be the start of an enormous short squeeze for both stocks.

Where’s the money?

Since the open on Monday, GameStop Corp. (GME) has boomed my as much as 41.3%.

AMC Entertainment Holdings, Inc. (AMC) has fared even better during that span, surging as high as 60.7%. In fact, AMC has nearly reached the high from the initial short squeeze on January 27.

The short traders are trying everything they can to stop the bleeding. They’re losing hundreds of millions of dollars a day with moves like these, and if their short positions get margin called and they’re forced to cover their positions, the huge spikes we’ve seen this week could be just the beginning.

The investors that have been long AMC and GME for months now are dug in and nearly fanatical about forcing a short squeeze. But now, with the huge moves of this week, a new wave of money is being poured into these names.

So, those that have not yet taken a position want to know: is the massive surge likely to continue for these names?

Here’s what I think…

How do I get some?

The GME bandwagon is back and these stocks are on fire.

It is not just GME and AMC, either. We have seen huge calls buyers in highly-shorted stocks like BlackBerry Limited (BB) and Express, Inc. (EXPR) as well.

In the short term, valuations based on fundamentals do not matter in the least. As we’ve discussed many times before, more aggressive buying will cause the price of anything to go higher.

And I think these stocks all go higher with the FOMO money pouring into them right now and the high probability of more gigantic short positions needing to cover – meaning they’ll need to buy even more shares – in the near future.

The Short Squeeze Saga is Just Beginning

The latest action in the market’s favorite short squeeze name shows us that the practice of hunting short positions is very much alive and well.

Everyday Americans can beat hedge fund managers and institutional traders at their own game.

There are still plenty of short squeeze profits out there to be had, if you know how to find them.

And with the help of my proprietary S.C.A.N. trading algorithm, I’m giving Short Squeeze Profits subscribers the real time data that can help traders get out in front of those spikes for a shot at massive wins.

To see exactly how my system works and the kind of mind-blowing profits my research and recommendations can show Super Squeeze Profits subscribers how to achieve, click here.

In the Spotlight: Amazon makes a mammoth deal

Amazon.com Inc. (AMZN) announced a stunning deal to acquire the Metro-Goldwyn Mayer movie company for $8.45 billion.

With the rise in popularity of streaming services over the last year, every major platform is in a figurative arms race for content that will attract subscribers.

Streaming services like HBO MAX and Disney+ have recently made significant moves of their own in an effort to increase their market share, putting the pressure on Amazon to keep up.

The deal with Metro-Goldwyn Mayer provides access to a huge catalogue of movies, as well as the potential for reboots and spinoffs of the popular Rocky and James Bond franchises, just to name a couple of opportunities.

Only time will tell if the move will allow Amazon Prime to compete with the likes of Netflix and others, but it does signify that Amazon is prepared to go the distance in this fight.

As always, I’ll be sure to keep you on top of the latest news surrounding this thriving industry.

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