Okay folks, so today I want to give you a little update on our Cosm play. The stock has capped off another triple plus run since the cycle lows and I want to give you my latest take on it. We're going to go through why it's running, what the setup suggests is going to happen next, and crucial levels to watch. If you see value in this video, make sure to hit that ravishy like button and also don't forget to subscribe.

Yeah, today's video is brought to you by MooMoo and the up to 15 free stocks that you can get if you sign up and deposit with them and fully open an account using our link down below. Okay, so Cosm now Cosm has once again gone well beyond our expectations. even since we covered it in our watch before Monday video, it's more than doubled I Wish that happened every time, but welcome to 2022. definitely doesn't happen every time.

However, the context on my original thesis for Cosm was here: You have a heavily heavily shorted stock that keeps fighting itself getting a ton of media attention because of its Acquisitions or because of its Insider buys unless you've got a ton of rolling Catalyst waves for this to trade off of. and after we got that breakout past the previous peak in the 60, these, you had a bit of a liquidity Crunch and it popped up to 88 cents rapidly before a take Profit cycle that then bounced into the after hours, which was fairly reminiscent of the take profit cycle we had back here, though significantly faster. So what is going on? Well, first of all, the fact that we are trading this high is putting an insane amount of pressure on Shorts to cover and buy back shares. And they were already trying to do this even before the rally.

but the stock is now up 860 percent in the last month. If you were short on this, hoping it would go to zero, you've just had the book thrown at your face and now your nose is broken and you're writing a letter to SEC Chairman Gary Gensler asking him to cancel retail Traders ability to buy stocks, especially the ones that you're shorting I Don't like it when the peasants mess with my stocks and it's becoming increasingly difficult to get out without massive massive losses and without causing a further acceleration of the stock. To the upside, but they are trying to do it anyways. short interest continues to plummet.

and if short interest is plummeting despite the average short position being so much lower and thus being so massively in the red, what does that mean? Well, it means that Shorts are so worried about this accelerating more to the upside that they are willing to take the L now as a form of risk management if it simply saves them from the chance of having to take a much bigger L down the road and the way that I look at this is all this remaining short interest here. this is all extra. Firepower to accelerate the stock. To the upside, these are all extra shares that are going to be bought back at some point, right? and bought back a lot faster.

If if the momentum continues staying as strong as it has been the last couple of weeks, every single shorted share has its breaking point right where all of a sudden it either gets margin called or it gets a closure based on some sort of risk management that is put in place most Capital maybe with the notable exception of FTX but most capital is put into a position with specific guidelines in terms of how much loss is acceptable before you get a flip on the position and all of a sudden it closes out. Whether that's the lending broker or the actual fund itself that's trading, there's always some level where there's a Breaking Point and the faster we go up, the more we're going through those breaking points which kind of gives the already very strong momentum extra. Nitro boosts as they go through these levels. and I think if the stock breaks above a dollar, you're going to have a ton a ton of new short sellers covering and that's going to cause an even more aggressive liquidity.

Crunch And today you also have this media piece from Investor Place. They just came out today and talked about the five investors betting big on Cosmo stocks. They talked about the CEO who holds 52 million shares and purchased 40 million during Q3. They talked about another Insider who purchased this entire stake during Q3 Morgan Stanley They talked about who holds 56 000 shares vert 2 which holds 46 000 shares, but did sell some of the previously held shares during Q3 and UBS who purchased 30 552 shares during Q3.

You also have some hedge funds owning chairs, and if you look across social media, there's a lot of people spreading this article and trying to get some more excitement for the stock. Quite frankly, though, if you really look at this article and you really look at the numbers that they're talking about, this isn't really much to be excited about. I mean Morgan Stanley Owning 56 000 shares of a stock worth less than a dollar isn't exactly a big position for that massive massive firm and even the top shareholders. While they do own a lot I think a collective 26 between the two of them, they did still get significantly better deals when they bought their Stakes.

They didn't buy them at the current price, right? So not really that exciting. But the point is that it all comes down to that. A word: attention, attention, Attention. Pretty much any news article on a stock is going to go trending when that stock is already showing all this momentum.

People just try to lash on to some reason to buy and then all of a sudden what they fomo in you combine attention with momentum and a tight float and you get some pretty Boombastic Trading right? That said, one of the things that I always like to remind folks is that yes, acknowledge the opportunity in smaller caps, but don't fall for the hype BS A small cap most of the time, especially if it's a penny, stock is a trash company I Don't care if the leadership has good intentions, it doesn't really matter if you were buying, holding it, and getting married with it, you are most likely like 99 of the time going to get destroyed. You look at a small cap stock and you say I'm gonna play the moves but I'm not going to let the moves play me I'm not going to drink the damn Kool-Aid Because everybody's telling me Oh it's all about how I can buy and huddle and pump some other guy's position up. No, no, no, no, no, it's all about how can you take advantage of the Stock's moves if you're going to play a small cap. You have to understand that Yes, they can be a lot of fun, but they can also be very, very dangerous and you can't trust most of what you see online.

Okay, crucial level. So if you want Cosm to really maintain overall momentum, the main support levels to hold are previous resistance at 65 cents, previous support at 60 cents, and worst case scenario, a take profit cycle that leads you to support at around 45 cents. If you go below that, you'll most likely have to have some new Catalyst to come in and re-excite shareholders. And if we do end up getting a take profit cycle in the next session or two, the higher the support level that it holds, the better chance you're going to have of that third wave run that takes you to another massive new high Something past that 88 cents right now.

In terms of upside levels. To know: Short: Interest really started skyrocketing when the stock was trading at about 10 cents a share. So I mean if you break past one dollar if that's the big resistance level The crucial level to break. then at that point, the stock is trading at 10 times 10 times.

Many short sellers average short price, which is a massive massive disaster. But it could get much worse because if you open up the full charge, you've had several periods of time where the stock went from the sub one dollar region and tripled or quadrupled before inevitably selling off again. Of course, short sellers do not want to get stuck into another one of those massive liquidity crunches to the upside, but if the stock manages to break above a dollar, it becomes significantly more likely that that's going to happen. And if this style of run happens again at these levels, it's going to be a lot more dangerous because there's a lot more consistent momentum that has been stretched out for longer period of time.

There's more people pounding the bid against that really small float at the same time or short interest is a high percentage of free float and thus, in my opinion, the Run would be a lot more juicy than anything else we've ever seen on this particular stock. So that's really my take. The most crucial level to break is one dollar and then probably some proof of concept to 125 and 150 and after that I'd expect you get a run that Rivals what we saw back in April when it jumped from 80 cents to 250. I Think you're going to get something that could go from one to four or even five dollars very very quickly.

but we do already know how this is going to end. Do not be fooled if you are somebody that decides hey, I'm going to go ahead and I'm going to randomly Buy in and hope that I'm going to magically get out at the right price. Well, you might as well just go ahead and get it out of the way. punch yourself in the face right now because that is what you're going to deserve very very soon.

We know how this is going to end. If it does manage to break that one dollar level and it runs up to 125, 150 or even up to three or four or five dollars, Well, guess what happens at the end of the day? It's going to dump and it's going to dump massively. Quite frankly, the play has already been one of the best performers and one of my favorite plays that we've covered this year. But that doesn't mean that it's going to continue to be successful, right? If you make the decision to play with it now, I would go into it with the expectation that at any point it can turn rapidly against you.

So as always, you need to have proof of concept in terms of momentum and of course, risk management. That stops you from holding and hoping. With this position, you do not want to be a bag holder on something like this. Let it dump a little bit, let it show another round of proof of concept, and then if you get that proof of concept that suggests that it's about to break above a dollar, that is when I think the biggest opportunity is going to be now.

In conclusion, I do want to remind you that we do not have a position in Cosm, nor will we paid to talk about causing by any promoting agency or anything like that. Thus, there's no incentive for us to say anything good or bad other than the real thoughts that we have on the stock. Anyways, if you saw value in this video, make sure to hit that ravishing like button and subscribe. Make sure to check out the 15 free stocks that you can get with MooMoo using our link down below and we will see you in the next video.