Don’t Miss Your Chance at the Next Big Surge
Fresh worries are all over the market these days, but instead of panicking, look ahead to the opportunities those worries are creating.
The big story this summer on Wall Street has been economic recovery.
With the widespread rollout of several viable vaccines, many of the most beaten down industries have staged a big comeback this summer.
Stimulus checks have helped to drive more consumer spending higher over the last several months. And with more businesses able to open their doors at or near full capacity again, consumers have had a wealth of opportunities to spend.
After a year of lockdowns, people have been eager to get out and enjoy the things they hadn’t been able to do for so long.
In the first three months of 2021, consumer spending grew by 2.6%. That was followed by another 1% jump in June after May saw a 0.1% drop.
With the surge in spending and consumer confidence, the stock market has been a difficult thing to bet against this summer. But as the Delta variant of COVID-19 begins to threaten many parts of the U.S., those looking to take short positions are coming out of the woodwork.
And they seem to have their sights set on one sector in particular.
Where’s the money?
I think it’s safe to say that almost everyone was looking forward to a return to normal this summer.
That includes taking part in many of the activities that we couldn’t during the worst of the pandemic in 2020. People want to get out and enjoy the entertainment venues, restaurants, stadiums, shopping malls, and all of the other places that they weren’t able to for so long.
All of that spending on non-essential things is what’s called consumer discretionary - and the S&P 500 Consumer Discretionary Index (SP500-25) has risen more than 3.7% since last Thursday amid strong economic data.
But a new spike in COVID cases, is threatening to put a damper on consumer discretionary spending in the coming months.
New data shows that short sellers of stocks included in the S&P 500 Consumer Discretionary Index has been trending upward since April. There’s a lot of money betting that we’re primed to see a real decrease in consumer spending soon.
But while that may sound like bad news to a lot of traders, it’s music to my ears.
Because I know exactly what to do with rising short interest…
How do I get some?
Sure, there are a number of concerns with the economy right now, and we may very well see a decline in consumer spending in the near future.
But a greater number of short sellers in the market means more chances to force short squeezes.
Right now, I’m closely watching several stocks because of the massive amount of short sales against them. Any abnormally large buying activity on these names would push the stock higher and force short sellers to buy even more shares to cover their positions – which in turn would rocket the stock even higher.
And by using options to leverage long positions, I’m able to supercharge those profits.
My favorite short squeeze candidates at the moment are Hyzon Motors Inc. (HYZN), Cleveland-Cliffs Inc. (CLF), American Airlines Group Inc. (AAL), and Cano Health, Inc. (CANO).
Keep watch on each of these heavily-shorted stocks for sharp upward moment that could be the indication of a fresh squeeze.
But if you really want to get into the next big squeeze before most of the market…
How to Stay Ahead of the Short Sellers
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 seen 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: SEC responds to China clampdown
Over the last dew months, we’ve highlighted a number of companies that have been negatively impacted by the Chinese government’s increased regulation on some of its biggest companies.
This week, the U.S. market regulatory body took a big step in protecting investors.
Yesterday, the SEC revealed its intention to demand that more than 250 Chinese companies make better efforts to disclose the potential risks that an investment carries due to the current political and regulatory climate in China.
The SEC hopes to require Chinese companies to include such language in their annual reporting beginning in early 2022.
After investors were left holding the bag as the Chinese government rolled out new regulations aimed at tightening data security, the SEC wants to ensure investors are aware of the risks moving forward.
The move marks the latest escalation of tensions between the U.S. and China, and more conservative traders would likely do well to steer clear of Chinese stocks until the situation improves.