Folks Markets are closed in honor of MLK Jr But we've got a lot that you need to prepare for before then. Number one, we're going to discuss the setup, why we are entering an extremely powerful squeeze season, and why history shows. this will continue. I'll show you the facts.

Number two: the top trades heading into this week. How can you take advantage of this squeeze season? like with our triple by trade idea that ran over 200 plus percent briefing price to highs. let's get to work time stamps down below. Okay, first, let's start with the market setup.

Like I said, we are entering an extremely powerful squeeze season on Friday alone. you had a huge Awakening of small cap stocks from previous squeeze cycles. For example, SDC went from 48 to 88 cents. Arvl went from 27 cents to 94 cents in the last couple of days of the week.

Newegg woke up and went from 146 to like 309. Eh, The lovely E Hang went from 1260 to 1784. Btcm went from 178 to 340. In a few trading days, Bbig G ran massively towards close up B Bigly, you're even seeing Bitcoin and other major crypto assets get squeezy mixed squeezed amidst short liquidations.

and with that, Maura Lovely Mora Back in Action going from 3 to 8 15 in just a couple of weeks and these are just a few examples folks. small caps and risk on positions are having quite the lovely Joyride aren't they? and I firmly believe you're going to see a lot more squeeze stocks in the coming weeks and a ton of small cap Runners specifically. and overall, Small Caps have so far begun the year beating the S P 500 quite badly with the Rooski 2000 leading the way and the NASDAQ close behind it and the S P 500 endow lagging far far behind little slow pokes, aren't they? The argument that many people are giving for this is that Small Caps anticipated the Bear Market and sold off far far before the rest of the market did. and they'll anticipate the return to bull Market faster as well.

And boom Bank of America All this two months ago, secular trends of stagflation, reassuring localization, fiscal stimulus equals small cap Bull Run In 2023, this is what Michael Hartnett from Bank of America's team told their clients back in a note in November Stagflation continued through late 1970s, but once inflation shock of 1973 74 was over, U.S Small Cap entered one of the great Bull Markets of all times, small Cap stocks to outperform incoming years of stagflation. Hartnett Wrote on the note and most importantly and listen very, very carefully here. Small Cap out performance often begins at the start of a recession, which Hartnett believes is imminent. Long-term returns for U.S Small Cap stocks during recession since 1936 averaged 11.7 percent compared to just 8.4 percent for large caps.

Okay, so here's the deal folks. After the December 1974 Fed pivot Small Cap for the biggest winners by far, they obliterated value, They obliterated rents, they obliterated growth, They obliterated equities over overall and energy and real estate. and they even obliterated the Disco. Wait, no, they didn't obliterate the Disco because the Disco was alive and well in the 70s.

but they obliterated literally everything else. So unless you invested in either the Disco or in small caps, you were destroyed. You were completely completely beaten. and it doesn't even come close now.

I'm not saying it's time to buy small caps blindly or even at all, unless you're looking to be a dirty little Trader but I am explaining the market calculus right now and why you're seen and likely going to continue seeing so many small Caps both good and bad booming. and I mean booming, complete booming Mcboomsters. And the reason for that is because of this pivot narrative. This small Cap Trend trade is relevant because the bond markets are pricing in a Fed pivot later this year, which means markets are already starting to test the waters in the small cap segments.

Fed Futures are saying the FED is going to start cutting by the end of 2023.. knowing that small caps perform best when a recession starts and the best when the FED pivots markets are going to be increasingly testing those waters on bullish positions on those small caps. and many of those are down like 90 percent or more. If you are a hedge fund trying to wet your dirty little feet and get instant returns, buying an extremely high beta stock in a small cap bounce can net you a pretty sizable gain.

And because a lot still have high short interest, that means a ton of short squeezes. In the transformation process from all bear to increasingly bullish, you're going to have hedge funds that are short going against hedge funds that are long and they're going to be battling it out right now. We just have one side which is short short short. Ask questions later.

Now again, Am I saying go all out and buy small caps Now Absolutely not unless you're going out to your local store to buy these kinds of small caps because they really need your business. But the truth is folks, and I'll tell you it like it is, since people are still debating whether or not this is a recession. Well, that means we have overall a lot more room to fall since earnings expect expectations have not yet factored in a recession. Well again, that means we have more room to fall.

But history suggests loudly and clearly that very very soon after the recession becomes obvious to all participants. That's when you get that first start of the Bull Market rally and complete turning of the tide in those small caps. So what I Am saying is be aware that the process of switching from a market that screams sell all small caps and ask questions later to a market where hedge funds are pouring Capital into them expecting a pivot. Be aware that that's going to make things real juicy real fast.

If you thought the Triple By run was crazy, imagine what will happen when shorted stocks of actually good companies start seeing squeezes trading opportunities. Galore So what are some ideas on squeeze trades? Well, firstly, triple by is still one of the main ones, at least for the next week. For context, we originally briefed on the lovely Triple By at about 160 ish on Monday the 9th as a short squeeze contrary and trade candidate and it ran to 587 at highs. This was about a 266 percent run briefing price to highs.

Extremely solid trade idea and shout out to anybody who played this correctly. Obviously not all trade IDs are going to run and not all Trends are going to do what you want, but there's a ton of value in showing up every day and analyzing setups and finding patterns. and this is the perfect. The perfect example.

By the way, you gotta love how the financial media call this a random run that no one could have predicted. Hey, wait a second. We pointed this out right at the first attempt, right here in the daily morning briefings and then a little bit later on the channel. and I'm sure that many of you who follow the channel regularly were able to find this without us even talking about it.

And yet the financial media want you to believe that. Oh, this is just a random meme. Chase Again and folks, this is what happens when you wake up every day and you put the work in. You can be one of the first to identify new plays that are showing early signs of adopting lucrative trends like the early proof of Concept rally that we had found in Triple B Y.

But overall, in this case, you have a highly watched short squeeze candidate on the verge of bankruptcy with a ton of attention catalysts pushing it. Very, very contrarian. A little contrarian. Hungarian And folks: I don't think that it's done yet.

I Think this take profit cycle is going to last a day or two more at Max and then you're going to see another upward attempt. This also reminds me of the Sears trade from like 2017 when Sears was going bankrupt. It had many rallies in excess of 100 before it eventually went kapoop. The lesson here whenever there is gains to be made by picking out the bones, speculators will come in and squeeze shorts and get out before the stock inevitably dies.

Now what? I find unusual about Triple By though, is that you not only have an insane amount of open interest in the options chain for options expiring January 20th, but it's also very, very split. You have a ton of bullish Traders betting on strike prices as high as four to ten bucks, which expect a massive move to the upside and then you have a very concentrated open interest in puts from ten dollars and Below which suggests a lot of money Betting On the downside, in totality, this is a pretty sizable split in interest. A very, very sizable split in English Lots of people think it's going to go up, Lots of people think it's going to go down most small cap short squeeze candidates though, have the majority of their options concentrated on one side or the other, not on both. This again, very even split.

So you have a completely different Dynamic and I Think this one is different because you have a lot of people who simply sympathize with the short thesis: this company is in a horrible shape and heading towards bankruptcy and people are like, okay, it makes sense. We're on the short seller side with this. and by the way, it's one thing if people are going and buying lotto ticket style contracts for dirt cheap prices where it doesn't even matter if you lose your money on them. But a lot of the open interest is concentrated in contracts that aren't cheap at all and have pretty split probabilities of success.

So I mean there's a lot of emotion in the stock and this is great for trading opportunity. So again, I Don't think it's done yet. I Think this take profit cycle is going to last a day or two Max And then you're going to see another upward attempt. Over the coming weeks, you'll see more updates on the bankruptcy, which will be both seen as positive for rallies and some inevitably bad for rallies.

Obviously, in the long term, it's going to be bad, but in terms of this attention phase I Think you're going to see a lot of rolling rounds of momentum like we've already seen, if not even bigger next, Apron. So we've mentioned Apron as a squeeze candidate at least four or five times in the last six months, and quite frankly, the setup has always been solid, but it just never got enough buying pressure to cause a squeeze. And that's just the reality of how markets are sometimes. But now, if this current squeeze Trend continues I Expect Apron to get what it needs to rally and rally quite a lot of full rally rallito.

As some would say, according to Ortex, short interest is at about 40 percent of free float. Shorts have closed out 12.76 percent in the last week, and the more they close out, the more they cause buying pressure in the stock, right? You got to buy back shares in order to cover your short position. Despite the fact that the stock is down about 87 percent year over year, short interest is at about as high as it was at highs in November of 2021. Which is to say, what Short have already realized.

Most of the downside they can on this stock. Now they are either trying to close out or they are simply just getting greedy if they're continuing to short it because they're already very, very profitable. On the position, the fact that they haven't closed yet is just pure greed. What? you got 90 down and you want an extra 10? No, these are risky, Greedy short.

Sellers and the ones that aren't are rushing to cover and they're causing some upward momentum in that price. So both of these types of short sellers are creating massive, massive opportunities right now because they're both very susceptible to getting squeezed out. So watch for more of these pre-market and extended hours moves in the coming week, because oftentimes these can predate huge runs during Market hours. Okay, now the third squeeze stock that you should know about is Mara Lovely! Mara So Mara is of course, a Bitcoin miner who is actually one of my favorite miners, but she had a hard time in the crypto sell-off just like every crypto related stock.

However, the recent bounce back in the coin of Bit has resulted in her bouncing in back as well a little bouncy. Mara The irony here though is that short sellers have tried throwing the book at this poor girl with short interest at almost 40 percent. If Bitcoin though continues its broader rally and Small Caps continue their overall trend. The pressure on shorts and the stock is going to escalate and compound if that happens.

Ho ho Ho It's a late Christmas so should you deck the halls with lots of Mora Well, it's actually run up a lot. So the key when you see this kind of proof of concept rally is to wait for it to have a take profit cycle and then show signs of bouncing from that. Now Anyways, folks like I said I believe the coming two or three weeks especially are going to be some of the hottest for squeeze stocks. No guarantees.

but I believe it's setting up to be that way. In the first couple of weeks of 2023, we've already seen a lot of big Runners and I believe we will continue to do so. So if you'd like to be one of the folks on the front lines when we identify our play ideas, make sure to join us in zip Trader you to get access to our daily morning briefings each and every morning link down below. You'll also get access to our step-by-step lessons, our private chat, our full price Target list and other trading resources, and in honor of the late great Martin Luther King Jr We've also activated MLK 50 which will get you a 50 discount on our program and will expire in a few days.

So if you would like to join us and take advantage of this coupon code, make sure to do so soon. And plug aside I Want to give a strong shout out to Martin Luther King Jr and the many people who sacrifice to bring about greater equality for all people here in the US. We'll see you in the next video.