Profit Pregame

Why the Two “Meme Stocks” Should Be Back on Your Trading Radar

Short Squeeze History is Repeating Itself

We’re seeing a pattern start to develop in the market’s biggest short squeeze names, and now may be a great time to jump back in.

What’s happening?

The enormous profit potential around short squeezes has captivated everyday investors like nothing else.

Much of the influx of new retail investors this year can likely be credited to the potential to make triple digit profits in a very short amount of time that these trades have offered.

But for the last several weeks, traders that bought into the rising prices of two of the market’s biggest short squeeze names have been seeing their investments take a huge hit.

And many traders have been bailing out of what some are referring to as a market fad.

That is, until yesterday, when shareholders of the “meme stocks” finally found the floor.

With another big potential move on the horizon for the short squeeze stocks that started the movement in January, traders are starting to pile in.

And I believe these stocks once again offer huge profit potential that you can take advantage of.

Where’s the money?

After falling precipitously throughout the month of July, yesterday saw a significant rally in both GameStop Corp. (GME) and AMC Entertainment Holdings, Inc. (AMC).

The rebound of AMC soared as high as 18.3% yesterday, while GME regained as much as 8.5% at its high.

Retail investors that are attempting to force a massive short squeeze in both of these names – dubbed Apes – have been using the last month’s decline in their prices as an opportunity to continue to buy and hold shares.

Each day that passes in which these stocks hold their elevated prices forces the hedge funds and Wall Street institutions that have shorted them to pay for a losing position. The hope of the apes is to force the shorts to capitulate and cover their positions by buying shares.

And yesterday’s rebound is adding fuel to the fire.

We’ve seen before how big gains from these “meme stocks” have attracted more and more buyers that are afraid to miss out on potentially massive profits.

So, should you be buying into the latest push up for AMC and GME?

Here’s what I think…

How do I get some?

As we’ve discussed many times here before, the only real driver of price in the short-term is the difference between buyers and sellers.

And as the prices of these stocks begin to rise once again, we’re seeing trading volume increase as investors pile in again.

That’s particularly true for AMC, which after seeing depressed volume for much of the month, has seen a steady uptick in trading volume this week.

While the same can’t be said for GME – whose volume has remained relatively steady – the two are both rising as traders looking to get in on the action bid the price higher.

I see a strong possibility that both continue to rise in the coming days to the recent resistance levels of $219 for GME and $58 for AMC, but watch for declining volume as an warning sign that prices could take another dive.

How to Stay Ahead of the Hedge Funds

The battle between retail investors and the Wall Street institutions with gigantic short positions is a complex and multi-faceted conflict.

And as we’ve since ever since late January, the little guy CAN beat the Wall Street elite for tremendous profits.

But the institutions are doing everything they can to fight it.

I want to show you how you can get into position to go after HUGE money on what could be the next short squeeze target.

The key is my proprietary S.C.A.N. system that tracks where the biggest money flows from traders is moving. I’ve spent months fine-tuning S.C.A.N. to zero-in on the most heavily shorted stocks in the market.

That allows me to find short squeeze opportunities in real-time with ease and provide my Super Squeeze Profits subscribers with the right trade recommendation to take advantage.

Want to see how it works? Click here to learn more.

In the Spotlight: Medical advances equal huge profits

In other massive price increase news, the share price of NeuroMetrix, Inc. (NURO) boomed more than 241% yesterday.

No, this Massachusetts-based medical device firm isn’t the latest short squeeze target.

Its skyrocketing price can be credited to an FDA approval of its breakthrough electric nerve stimulator in treating fibromyalgia symptoms in adults.

Trading volume on the tiny $49 million company exploded to more than 228 million shares – compared to its normal average volume of just over 125,000.

The medical industry is rife with incredible profit potential as breakthroughs in medical science are happening at a faster pace than ever.

In the coming weeks, I’ll be doing a deep dive into the space to bring you some of the best opportunities in the sector. To make sure you stay ahead of the next medical advance, keep any eye out for Profit Pregame.

Community Tips

Inline Feedbacks
View all comments