Okay folks, so we got to give a violent update on the market in place. and then we need to discuss specifically what happened with our Redbox play, which believe it or not, went up another 70 plus percent at highs today. That was atop the 72 surge from Friday and they said that Dvds weren't the future. How dare they? In fact, I'm even thinking about purchasing a Vhs player because I could see where this trend is going.

But that aside, what are my thoughts on this play moving forward? Is the play over or is there a lot more to run? We'll discuss it. Okay, first an update on the Marquetta, which is the market for the non-spanish speakers. The S P 500 hit a new year to date low this morning and jumped off it to finish the day in the green. You had some serious bouncing in some of the more bludgeoned stocks from Friday with the dow barely finishing on the green side of flat.

but the Nasdaq up 1.63 You look at the calendar for this week that we presented yesterday. The Fed's Fomc meeting starts tomorrow and on the fourth Wednesday, we should have our rate hike decision. If I had a bet, I'd say the Fed is going to give us a 50 basis point hike. The market will breathe a sigh of relief that we have some new three and that the Fed did what the market was expecting it to do.

I don't think there's going to be any big surprises at this meeting. I think if you're going to get a big surprise, it's probably going To be at the next meeting in June. So I'm on team post Fomc meeting rally. next.

My thoughts on a certain lovely little alligator. Not sure if you know her, she's quite a sweetheart. Just don't get too close cause she bites unless you're into that kind of thing. Out of Gator managed to make nearly a 10 run today and push deeper into the 5 battleground on the options chain.

The chain of options, as they say, you saw a huge increase in concentration at that five five strike price which is now in the money again 7020 in open interest. but you also have a lot of contracts at that 6 drive price and even as far out as that 13 which I told you yesterday I've been watching very, very closely. Very interesting to see some concentration of call options far out of the money, very low probability areas. Maybe they know something we don't know.

Net and in effect though, price wise, we seem primed to go for another breakout attempt. By the end of the week last week, I explained that I was very, very worried that if we broke back below five, it would be very, very difficult to restart that momentum, but actor hasn't had a hard time restoring that momentum at all. I'm very, very shocked and looking back. in hindsight, it's really clear that that didn't even do anything to add her, and I think that you could really credit that to how many squeeze speculators caught onto the stock.

I think the proof of concept it showed since back in early April when we started talking about it actually led to a lot of people realizing that hey, wait a second. This is a very, very one-sided battle, and the institutional players that usually are able to draw a lot of capital out of these stocks during down days are nowhere to be found because they've all been concentrated on one side and they've pushed it basically to the limits. And in hindsight, I think that's what really has helped it regain momentum so quickly and so effortlessly. And on Friday, the day of the Fry, I compared the current rally to a rally we saw in the past on Adder when it had a lighter short squeeze setup, and I explained that I believed that given the right buying power applying enough pressure, we were probably very, very early in that same exact cycle that saw it go up a lot more and Adders move today confirm that belief.

But we can't just have belief when it comes to the stock market, right? It doesn't matter how good a setup is, if you don't have clear, concrete entry and exit plans, you're going to end up getting destroyed, So keep that in mind. Always assume when you're this far off on a run or that hey, this could go back down tomorrow 90 Would I be prepared for That risk management wise if it went down 90 or would that blow up all the profits that I worked so hard to make and also eat into the original equity that I invested. Don't let greed and the opportunity for it to go up more and break out higher derail your overall long-term goals if you apply sloppy trading habits and this ends up going to twenty dollars by next week. Well, fine, maybe you made money on adder, but two weeks from now when you do another play and you use the same sloppy trading tactics, you're just going to give it all the way back to the market.

In terms of callous plays, we saw some solid ones this morning saw eat Them. We briefed on Bttx about 30 minutes prior to market open at about 125 ish a share and it ran into open broke below our price ranked blue Sma line, but held its overall upper direction for most of the day before near close breaking actually above our blue price break that's the main line again and running from 128-ish to 225 at heights from the original briefing price. That's about an 80 run, which is a very, very solid trading opportunity. But how did you find it? Charlie? Well, this morning I saw a low float Biotech stock that's been beat down to oblivion, but was rotating around social media forms and financial media had already shown some proof of concept of being able to rebound in the pre-market and saw a lot of volume for a stock this small in a usually volume dead period which is extended hours pre-market and I also remembered it from back in like March when it decided to randomly rally after catching some similar attraction in the pre-market Now of course, previous patterns don't have to repeat themselves, but they serve as crucial data points when analyzing and forecasting future behavior.

So shout out to you if you played Bttx this morning and played it successfully. Whether you found it with us or without us, this is the full list of our Zip Trader You morning Catalyst plays from this morning. If you'd like to join us and get lifetime access to not just our daily morning briefings that are out every morning 30 minutes prior to market open, but also our full program which breaks down risk management, how to start learning to build an account in the stock market, how to play different types of catalysts like Fda, Catalysts, or other types of news, how to set price targets, and so forth. Well, I'll go ahead and put a link to Ziptrader you below.

The price of the course just went up and the coupon code never give up also expired just like we promised. but we do have a new and smaller coupon code charlie Fever which you can use at checkout whenever you are ready to join us, but anyway segue into Red Box. This was another one of course we briefed on this morning, but Red Box more like Green Box, believe it or not, it hit 11 today at highs, which is another 75 plus run. So full context.

Last Monday, I presented on the Redbox setup as it was cooling down to 392 because short sellers had gotten over concentrated on one side and that led to buying pressure becoming accelerated in a week over a week trend and showed a ton of proof of concept or proof of concept. Though on Friday we reflected on the setup after it successfully made a new cycle high and went up like 72. On that day, it hit 6.27 My thought process was that huge run on Friday into the weekend would supercharge its ability to get attention unless you'd see a lot more capital bid up the tight float. come pre-market and market open on Monday and that did happen.

Oh boy, it did happen. And yesterday I predicted you'd see an early morning breakout with all of those Fomo folks. but then you'd see a cool down and after that cool down and profit taking period, you want to pay very, very close attention to see where it retains value. And if we have a higher low this morning, it jumped all the way up to just under 10 bucks a share.

And then it had its profit-taking period and it dove about 20. but it retains so much of today's rally that it made it incredibly easy to rebounce and form a new cycle high. which it did. and in fact, the stock had a lot working against it today at 9, 40 Eastern or 640 Charlie California time, which is about right here.

Redbox got an exchange l-u-l-d-paws which resulted in the first dive of Momentum, which resulted in the first dive of Momentum, but that quickly got bought up after and then the second one was activated at 9 50 Eastern, and that one basically got eaten up by the consistent momentum as well, but didn't even really show signs of stopping. So what is an L-u-l-d Pause Charlie. Well, it's basically when you're having too much fun and the Sec is like, wait, wait stop stop having fun. This is the market.

You should be losing money, not making it pause. Okay, that's not really how it goes. Here's the definition from Wells Fargo. It says the Sec's limit Up Limit Down aka L Uld rule prohibits trading activity and exchange listed securities at prices outside specific price bands, which are established at a percentage level above and below the average price of the security over the immediately preceding five-minute period.

Which essentially means that the Sec places a limit to how low and how high shares of a certain company can be exchanged at. And oftentimes we see this completely derailed momentum in stock after stock, but not Redbox today. What's also interesting is the different coverage from financial media. Today Yahoo Finance Plus tweeted out Redbox stock is soaring more than 55 percent.

After the company announced its Cfo, Kavita Southar will step down, Michelle Cohen will step in as interim Cfo. Funny, because this news happened like six days ago that didn't catalyze today's run. This had nothing to do with that. Another one Marketwatch reports today.

Redbox stock search continues. but don't call it a short squeeze. How dare they suggest this could be a short squeeze. And one of the reasons for that that they cite is a Managing Director at S3 Partners saying that short interest represents about 15 percent of the float.

But this is another common talking point. Oh, there can't be a short squeeze set up because if you add up all the entire shares including the locked ones that can't be traded or have been or haven't been traded for a long time and probably won't be anytime soon. Well, the percentage of shares short is actually very, very small and would do nothing to the price. But if you actually look at the free float instead of the overall float, the short interest is 51 51, not 15.

And you look at the cost to borrow Average, It's now at 354 percent with free float on loan at 96. That's almost 100 of free float on loan and utilization is at a hundred percent. Or as Market Watch would say, shorts have barely even touched this thing. Short squeeze set up more like short sneeze.

Uh, chew, no squeeze here folks, don't listen to the Bs. The key with a good short squeeze setup is actually pretty simple: Find a stock that has extreme short interest that it's going to be very, very difficult to get more shares shorted on. It has a very, very locked up float relative to how much buying pressure it's getting while also showing a buying pressure trend. That's how we found Redbox last Monday, which a lot of people said was too late, but it was already showing that proof of concept and I need to see proof of concept Before I look at it as a squeeze setup.

I don't just see lots of short interest and say oh squeezer, I need to see proof of concept is it applying the pressure With Redbox, it was, and that's why we talked about it on the channel. If you have a lot of buying pressure relative to an available float all of a sudden, you're in the situation where each buy order has a much more multiplied or amplified effect on the share price because there's not as many shares that could be bought. If there's lots of shares to buy, then the price increase is minimal. But anyways, moving forward, what are my thoughts on if there's more upside here? Well, the way that I look at short squeeze stocks is that they can run as long as they hold confidence in their uptrend confidence can handle drops.

It can handle quite a few drops, but it rarely can handle substantial battlegrounds being lost. So when you get the next major profit taking period and we saw some of what could be the start of that towards closed today, look very closely to see where it finds support and retains value. If it can hold seven or eight, I wouldn't be surprised to see another massive bounce later this week. But if it fails to do that and it doesn't quickly rebounce like Atra did, then you have to get into the situation where, hey, this is probably gonna be dead and you have to wait until the next cycle.

if there is one for it to go back up. You have to be completely honest because sometimes with these squeeze stocks, you'll see them go up 100 200 and then they'll die and then they won't come back in any meaningful way. at least not to those price points ever again. So you have to be able to account for yourself and have clear entry and exit plans.

You say? Okay, I'm going to play the momentum. I'm going to acknowledge that it's risky and then I'm going to cut out. I'm going to take my profits and run for the hills. In terms of other risk factors, I am worried about a potential share offering.

If I was the red box Ceo, I'd be sitting down right now right this moment with my compliance department and filing for a share offering with the Sec. This is a company that not only needs that money to grow, but perhaps even to survive. Guess what? The Dvd rental business? It ain't too hot And their streaming business ain't too hot either. really.

The main focus of this play is really the fact that shorts, While they were pretty justified in shorting this, waited until basically the last minute to really hit it over the head. They thought this was a great deal at much, much higher values. Oh, Dvd rentals Bullish. And then when it's down and kicked to its knees and begging for life, what do they do? Hey, it's time to short baby because they all hit it once.

It made it very, very easy for squeeze speculators to notice that the float was locked up is going to be very, very difficult for them to throw more selling pressure at it, and thus by acknowledging that overcrowding Saw the potential and opportunity for a run here and it's running quite a lot. So watch out to see where this retains value after its next profit taking period. And that's going to indicate whether or not we're going to get another bounce. or at least probability wise, whether we're going to get another bounce.

Anyways, that caps off today's video. Have a good rest of your day. If you have any questions, feel free to reach out to us below or join us on Zip Trade or Snorkel which is our free Facebook group link down below. If you're looking to learn how to trade rather violently, but also in a peaceful environment, then make sure to check out Ziptraderu down below.

Coupon code: Charlie Fever will signify to me that you have Charlie Fever and this will get you some discount at checkout. And lastly, if you're looking to get six free stocks with mumu, I'll go ahead and put a link to that below. Have a good one folks, I'll see you in the next one.