Okay folks, we've got a lot to prepare for this week. Numero Uno I want to give you an update on plays that I'm tracking as we approach this week. Numero Dos I want to talk about something alarming that I'm seeing in terms of this overall market and the economic recovery and what you need to know. and the only thing I ask of you is that you hit that ravishing like button and also don't forget to subscribe either.

Okay, let's go ahead and start with an update on plays and specifically short squeeze stocks that I'm tracking as we approach this week. Number one is Exella. Xela has made it many times to the briefing specifically because it has managed to get a lot of retail excitement while also consistently finding a lot of short interest. and now it's something like 36 of the shares sold short.

and having already five plus squeeze inspired rallies, it's hard for me to argue that there's not a high probability of having another search. Trends while going down, have remained very high for a stock like this, suggesting that there's a lot of retail and short-term traders on the sidelines watching it, and keep in mind that this search trend bump back in March corresponded with this 1, 6 to 7, 82 jump. This time around, the search trends, while higher, haven't correlated with as much of a jump, which suggests that there's a lot of retail money on the sidelines, or at least a lot of retail ice. I would argue that the chance of another retail rally isn't so much whether it'll happen, but from what point you look at the bounce off that red directional Sma line and the historical pattern of smaller breakouts before larger breakouts and I think you can make the case for this to bounce from the twos.

We'll see if it gets picked up this week, and of course, we'll keep you updated on the daily briefings as well as in the post market videos. The other squeeze stock that I'm watching is Fuv. Fuv, aka Archimoto, is one of the heaviest shorted stocks in the market right now, with a short interest around 37. It's also been basically barcoding for months, and it's been attempting a new breakout.

If retail picks up on this in any large-scale community, I would not be surprised to see that inflow push this into a squeeze hype play. Do I like the company itself? Well, let's just say it's not a passion of mine, But when you're looking at the setup for a trade, the support it found at 12-ish and rotating back and forth in that 12 to 18 channel and you combine that with the low market cap, it suggests that this is a very, very solid chance of being picked up as another short squeeze play this week and we'll keep you updated. Okay, moving out of short squeeze stocks, let's go ahead and talk about tomorrow. So Neo, Xpev and Lee will be reporting deliveries tomorrow.

I believe Lee already reported deliveries. Let's see. Yep, that's right, Lee reported. Very, very good delivery.

So we're gonna see what Neo and Xpev does. They might be out by the time you watch this video, but this is what we call a Conviction Building Week when it comes to buy and hold plays. The whole reason that you're buying and holding them is because you have conviction in them, and conviction is like a relationship. You have more trust in the relationship if it's proven to you that it can do what it says it's going to do.

trust can be earned, but trust can also be broken. and conviction is very important because it allows you to hold through volatility and be encouraged to buy at Dips. But at the end of the day, of course, conviction is built through actual numbers and performance on deliveries amidst this chip shortage will be huge now. in total context, all three stocks had a round of panic sell-offs amongst fear and anxiety over Chinese crackdowns, and then had a sizable bounce back towards the end of the week.

Now, the idea that China is trying to crush all their eevee companies that they spent so much money and time and effort trying to build up is a very, very tough sell for me. Behaviorally, the Chinese government almost always favors their own domestic companies, obviously. and if the narrative that the Chinese government is going to come in and over regulate a lot of these Ev companies is true, well, they're going to be disproportionately allowing Tesla to succeed in that market. and Tesla's already the leader in that market.

The entire Ev industry in China was built by aggressive subsidies and insane incentives that allowed the industry to get to where it is now, which is also expanding into Europe. In Neo's case, the average analyst price target puts it at 64. earnings are forecasted to grow 72 percent This year, you see similar healthy metrics from both Xpev and Lee. Okay, now it's time for the main entree.

So the market has over the last few weeks pushed back into total fluttery. And there's multiple fronts to this. Of course you look at this rotten situation. You have another sequel to the story with the Delta and Gamma variants, and the tone is slowly changing from will we have more restrictions to will we see more lockdowns? You have the White House saying that in all probability there will be new restrictions.

You've seen a number of state and local governments mandating employees to take certain precautions, and yes, it's certainly like, hey, we have cases going up. The primary variant is supposedly up to 90 more contagious. We are seeing some worrisome data in terms of breakthrough cases, and keep in mind that it's just the summer right now. What is going to happen when Flu season comes into the fall? I understand that this isn't a super popular topic to talk about right now, but you can feel the narrative rapidly shifting and with it the sentiment in the market has shifted as well.

And regardless of whether there's restrictions or lockdowns, hey, at the end of the day, consumer behavior changes very, very quickly when bombarded with all this news. Now taking a step back. what is really, really alarming about this is that while we are seeing these new threats really come to fruition now, the economic recovery was already showing signs of slowing down in weakness. Prior to that, we had the Gdp growth report from last week missing expectations supposed to be 8.4 instead was 6.5 percent.

We had unemployment insurance claims higher than expected. We had labor shortages, manufacturing shortages, Charlie shortages. The market was already funding out a lot before the whole variant situation became a lot more in the forefront. And here's the thing: The market can take a disappointment.

It can take disappointing numbers, but what it can take is a change in the narrative and what we're starting to see is a change in the narrative. The narrative is changing from rocky recovery to recovery with a question mark. It's changing from leaving the pandemic to prolonging the pandemic. And the more we see reports like this, the less confidence this market is going to have in moving past the constant threat of looming restrictions.

And the more we see stories around the world like say, Australia using soldiers to help police and Sydney check that people who have tested positive or isolating the more people are going to be worried that increased measures are going to come around the corner here at home. And in terms of some future setbacks, you look at some of the sectors that were driving the most growth in this recovery in terms of jobs and getting back to business industries like leisure and hospitality, airlines, retail stores, various forms of entertainment. All of these sensitive industries are quickly under threat again due to the variant, and most of them are trading well above pre-covered levels. And you combine that with the fact that we're already seeing again a slowing recovery.

We have massive shortages of both labor and materials and we are heading into flu season. Well, it's not hard to see why the market's fighting out a bit again. Gdp growth was slowing down even before this variant started factoring into the numbers and this upcoming week we do have another Jobs report and I used to preach that we want a report that's healthy but not overly healthy because that would have panicked the market about inflation concerns. But now it's more important than ever that the market at least meets expectations.

I don't even want to imagine how the market is going to react if those numbers miss heavily shouldn't be seen yet the impacts of the variant on this jobs report. So if you're already seeing misses despite that, hey, this could be a huge setback. Now on the plus side, if restrictions do come back in the upcoming months. hey, that could lead to more stimulus and more stimulus could lead to more speculative trading booms as it has done historically, causing a lot of opportunities for higher growth stocks for retail, short squeeze stocks and a number of other plays that we love.

So hey, we'll keep our eyes open and we'll keep you updated, but lots to be excited about for this week. Anyways, folks that caps off today. If you have any questions, feel free to reach out to us below or join us on the lovely Ziptrader Circle Facebook group if you'd like to learn how to trade. With our step-by-step lessons, our private chat, and of course our daily morning briefings where we brief on all of our favorite catalysts each and every single market open morning? Well, we'll go ahead and put a link to Zip Trader you below.

Fudstopper50 will get you 50 off before checkout. Anyways, that caps off the video and I'll see you in the next one.