Okay folks, so this is the last trading week of the year and we have a lot to get ready for. Number One, we have to talk violently about the market and what is going on because we're trending towards a very, very crucial level. Number Two, we got to talk about two hot setup stocks that were showing a lot of proof of concept last week. and number three, we got to talk about big news for one of our high Conviction plays and the only thing that I ask of you in return for all of this is that you hit that ravishing like button and also don't forget to subscribe either.

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Okay, so broader market S P You've had two periods where you get these sloppy back and forth downtrends and then these clean, fast recovery up trends. and in totality, the last two downtrends have resulted in a double bottom and a continuation of an overall bull trend that we've seen the market do all year. But you zoom in. and we failed to make any meaningful breakouts since November 22nd, and at the same time, we've been struggling within that same general lower end range from mid-october Back here now with more tech centric indices, you've seen more pronounced versions of this, but overall, the market hasn't been able to pick a clear direction since November more than a month ago.

The bulls haven't been winning, but nor have the Bears. We've been in a back and forth battle and obviously as we approach this week, we are on the cusp of the bulls having the upper hand as they only need a day or two really to break out into new all-time highs. But the point is, when the market trades within a trend, what is it Signaling indecisiveness? Capital is rotating back and forth within the trend lines, but it can't find enough bearings or enough conviction to break out to new highs or to reach newer lows. An indecisive market waits for others to make the move, and then when others finally do what happens, while the rest, the market follows suit.

which is why you see once a trend change happens, so many people go and exploit and pile on top of whatever trend change that is obviously heading into January and February. I would argue the trend is more probable to be in an upper direction, as historically that tends to be the time when capital gets reallocated back into the market and the bets are placed. And we've talked about a lot of different opinions on this and broken down exactly why that is in previous videos. But if you're looking at this trend line right now, despite the back and forth we've seen over the last month and a half, and you look at how little it's going to take for this to break out, I would argue that you're more likely to get a big bull trend within the next month than you are a massive downtrend.

but who knows, we'll see what happens. Okay, moving on. So Suppo was a beast on the morning of the 20th. We briefed on Sopa because they were up on excitement for being added to the Russell 2000 Index.

A small cap being added to a major indices is a big deal because every single time somebody invests in, say, a small cap fund. Now that tracks the Russell 2000. Now, they're also buying a small piece of Sopa, which creates a benchmark. a constant flow of benchmark investors just propping up the play regardless of whether or not the price is right.

Because they don't even know what soap is, they're just like, yep, it's another one in the 2000. obviously you have a much bigger effect if companies get added to the S P 500, but there's still a lot of investors that well invest in Russell 2000 or Russell 2000 tracking funds. So anyways, big sneaking deal and it went from the high 4 region on that news and it hit 14 the next morning and then 22 on Friday. Now obviously I thought the setup was intriguing for the reasons that I just mentioned big stinking deal to be added to a major indices, but I had absolutely no way of knowing that it would run this much.

The whole goal is just finding potential catalysts and then making sure that you're aware of them so you can kind of get lucky on purpose. For example, if you know that statistically small caps being added to major indices tends to correlate with huge runs after that announcement and post addition, then doesn't it make sense to be aware every single time you see a setup that meets that criteria? I try to the best of my ability to brief on the setups that I see in Ziptrader U. In the last couple of weeks, we've started seeing a pickup in a lot of these little plays that are starting to go parabolic. So I'm very excited.

and eventually, after this has a few more mini rallies, it's probably going to die off and die off dramatically to a higher price than it was before the indices, but much lower than the price of the height. But pay close attention to what this does earlier this week. If you have another holding pattern like we saw after this first rally, I wouldn't be surprised if this girl has some more run in her. That said, building on that, there has been an increasing wave of short squeeze setups.

One that I've been very, very excited about is Bfri. So here's the full context. On the morning of December 15th, we briefed on Bfri because they had been given an 11 price target by an analyst and that price target was circulating rapidly around social media. The previous standard closed at under six bucks a share, so I thought, oh, high potential and at the same time of that high potential.

also adding squeeze pressure to shorts and it went up a dollar. So the next couple of days, but where it really got hairy was on the 20th. We briefed on it again that morning and the following morning because social media mentions were going parabolic and the stock was showing a lot of proof of concept. Well, there's a new article spreading an even higher price Target, and because of what we've seen with other similar situations, I anticipated a lot more buying pressure combined with a very, very incredibly high short interest, causing a lot of people to fomo into this and causing a massive catalyst rally.

This was juiced up by the fact that hey, over the last week before this, it was already rallying up steadily and squeezing some of the lower priced shorts that thought this was worth zero dollars at like three or four dollars. Now they're like into 14.. We briefed on it a few days before and it basically did nothing for a couple days and then once the crowd found out on that article, it more than doubled. and the reason this is still relevant is because you look at how this traded at Thursday on close and you had a massive massive boost.

you're still seeing this article spread like wildfire. The article makes a case for a 40 price target. They said our analysis reveals that an imminent short squeeze could result in a minimum Bfri price in the 40 region due to short interest and borrowing costs. They cited short interest as high as 88 and borrowing costs at 144.

The idea is, of course, at a certain point shorts are paying so much in terms of borrowing fees that eventually becomes unreasonable to continue to hold short positions and they instead decide to cover. Now of course, usually what you see is just the defer game whereas you kind of have a little bit of cycling of shorts. but overall it just kind of is a defer and defer and defer and wait for retail traders to go home. But if enough people buy, obviously, you get into that situation where they're forced to do so a lot earlier because of margin calls and whatnot.

They also said that Roth Capital assigned a price target of 20, which was public knowledge but still helpful for them to create their bull argument. This setup reminded a lot of people of Lgbn where you have an actual fundamental reason for this to be trading higher, but still, that's just the base of it. Most people are buying it because what? There's that short squeeze potential and obviously short squeezed candidates come and go. We've known that all year.

Unless they become a legacy asset like something like your Amc or your Gme where retail traders are always present, but there may still be some life left in little Bfri you look at the broader trend. If this continues seeing the net buying pressure we saw this week, this could certainly get a lot hairier, a lot quicker. for shorts. Every dollar this goes up, the more of those shorts that shorter This at five or six dollars get squeezed.

And I mean emotionally squeezed because at this point they're not really covering much. But eventually you get to a point where it just doesn't make sense risk versus reward wise. And considering this as of today, is also one of the most talked about retail stocks while being extremely low cap, I'd argue it's worth watching. And of course we'll keep you posted in our daily morning briefings if we see anything change tomorrow morning as well as of course in our nightly recaps.

Okay, switching over to Neo. So Neo is supposedly close to striking a deal with Warren Buffett backed Byd for mass market brand Evs. Byd is a major Chinese manufacturing company with branches all over the world. They even have one with 750 employees in California.

They make everything from lower end electric vehicles, two electric buses, to other next-gen technology. Now, why is this important? Well, a few reasons. One of the problems with Neoday was that Neo didn't really announce a super cheap, mass-market vehicle. They did announce the Et5, which we talked about in depth last weekend and that will compete a lot better with the Model 3 than their other models have, but still, they haven't gotten low enough in terms of a price point to be mass market now.

What is interesting about this though is that Byd is expected to launch their own luxury lineup Evs this year, and perhaps partnering with Neo in some form or capacity could benefit both parties. Allowing Byd easy entrant into the premium market with the brand recognition of Neo, but also allowing Neo to make it more practical in terms of a mass production standpoint and also an international standpoint. partnering with Byd's manufacturing could fix a lot of Neo's own supply chain issues that we saw in the last couple of quarters. If you're going to make a mass market vehicle, you can't really do that right now.

With all the supply chain shortages and issues that Neo is having, they could certainly ramp up a lot more. But if you want to ramp up an incredible amount at the same time that all the other companies are doing it, you have to partner with a much much bigger manufacturer, and Neo partnering in terms of actually building a vehicle with them could definitely create that dynamic. Lastly, more lovely Mara. Good news.

She signed a deal with Bit Main to buy enough miners to produce approximately at the rate of 23.3 extra hashes per second by early 2023.. Now, if you go back to my numbers and analysis on what Mara could produce by year end 2022, we were only calculating it to be 13.3 We didn't have any information in terms of how much more was going to spend on boosting production even more, and this is very, very bullish. In my opinion, Mara has been one of our favorite plays in the crypto space, specifically because she's gone so aggressive at scaling production that it's mind-blowing and this is the latest example of that. That said, fun and hype and aggressiveness aside, what happens when you're very, very aggressive and Bitcoin goes down well, Mara gets bludgeoned even more.

She's getting rid of safety by betting more on her future. Now, for somebody who likes the company, that's a great thing for somebody who is like, oh, I feel a little bit insecure about volatility. Well, that's fine, but you have to recognize your insecurity about volatility before you get a broader crypto winter. Mara has already gone down a decent amount from all-time highs she had factored in the moon, but she could certainly go down more if Bitcoin does.

But the idea is that you have to look at what she's doing over the long term, and then if you want to play the volatility, buy in at strong dips and trim at high Euphoria rallies. Anyways, that's my take. Let me know what you think down below. if you'd like to learn how to trade.

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Anyways, folks, that's it for today. Have a good one and I'll see you in the next video.