Okay folks, so in this video, I'm going to give you a violent breakdown on the top five squeeze stocks that you 100 need to know about. And look folks, I am a probability guy. The way that I look at stocks and setups is I don't say oh, will this run or will it not because you never know for certain unless you have a magic crystal ball. But what I do is I go and I try to find certain characteristics of stocks that have run in the past and then I look for new stocks that have those same characteristics and I ask myself, is this a setup that's likely to run A fortune teller will look at a stock and tell you for sure where the stock's going to go next, but a trader will look at a bunch of stocks and identify setups and characteristics that make it more likely to run, and then they'll wait for certain signs of proof of concept.

In this video, my goal is to give you a list of short squeeze setups that I believe are ripe for a squeeze, but you also need to make sure that you have proof of concept and of course you're able to manage your risk If you do take a position and of course you want to make sure that you're doing your own due diligence and this video is brought to you by a caffeinated Charlie, but also the Recession 50 50 off coupon code on ziptraderu and lifetime access to the program if you're looking to learn how to trade rather violently with our step-by-step lessons, private chat, daily morning briefings, and full price target list, I will put a link to that down below. Coupon code expires just around the corner Labor Day. If only the recession would expire on Labor Day too. Okay, so let's go ahead and get to work.

So let's start with apron Mr. Blue Apron. So if you read our daily morning briefings, you probably already know that Aprn is a squeeze candidate that we are watching. And the reason is because this is a stock that short sellers felt they had in the bag.

It dumped from 2021 heights to lows at 227 in June. Very profitable position for Shorts. They did a very very good job on this one. Really problem though is that after hitting these lows when everybody wanted to start covering, it was originally very very difficult for Shorts to lock in their profits.

They found buying back shares to close out these short positions rapidly caused the price to rally which then helped attract what momentum traders and before they knew it the price had already more than double. This is like a short seller's worst nightmare. Oh, I just made tons and tons of money. but now that I'm covering all of a sudden, the price goes up a lot if you think about it from a long perspective.

if you're a massive, massive shareholder, let's say 20 of the shares of a company you own and the stock has just gone up 300. It's like, okay, great. you're sitting on a huge gain, but if you go and you sell out, that's going to cause a massive run on the stock. So you have a situation where Shorts were trying to get out of this, but shares were rallying super super fast.

But after earnings, short sellers actually felt confident to actually reverse course and add more to their short positions, which would have been fine and dandy, except that right after that, you got a ton of momentum and squeeze speculators buying back in expecting a bigger version of what we had just come across. And so now we're back in the situation where Shorts are trying to cover again and essentially admitting defeat with short interest dropping 25 percent a quarter week over week despite the elevated prices, which means what shorts are covering at a massive massive loss at least the ones that have added to their short position at lower values, which seems to be a lot of them. The problem though? well, prices are still very elevated, which means shorts are likely sitting very red at the same time where there is still 27 percent short interest left in the stock. Which means there are a lot more to be squeezed out if prices remain high, and there's a lot more buying pressure if they continue to close.

And you look at the long-term chart, Aprn has been a short squeeze player for quite a long time. Since 2019, Aprn has had about four cycles where the stock dumps shorts, get greedy, they try to close and then it pumps the price and causes momentum traders to buy. This is the most recent iteration of the cycle, and in my view, if this continues showing proof of concept, I wouldn't be surprised if we're sitting here about a week or two from now and it's already hit 10 or 15 dollars before it's inevitable dump. Okay, next.

Weber. Now, this is actually a stock that a lot of folks have asked me to cover, and I agree. This is a very, very interesting setup. When you look at a chart like this.

What do you see? Perhaps a pattern? Perhaps a trading? Perhaps market inefficiency? Maybe you see manipulation. But what I see in the bigger picture here is a battle between shorts and longs, neither of which probably have much conviction one way or the other in the company, but are just playing the beautiful volatility. you go over to the Ortex data Estimated short interest has been ticking up literally all year. As the stock has been going down, Shorts became more and more convinced that it should go down further.

This is the short seller equivalent of going and buying a stock, and then once it's already run up 300, doubling and tripling down on it because, oh, it rallied. And when you see a chart like this where short sellers are still increasing their short position relative to the stock, well, that means that you're still in an early stage battle when short start covering. That means that the battle is in a later stage, right? because they're trying to close out of their position in other stocks that we've talked about. and we'll talk about you've seen them actually covering.

Which is a flip of the coin to this. And that means that if you look at the two battles that we saw during these two time periods, well, the next one is going to be even more aggressive. It's going to be an even more aggressive battle because short interest is continuously going up. Shorts have just started attacking this.

which means that when you have another wave like we had those last two periods, it's going to be even more spikable. And right now, short interest is already pretty tight. Short interest represents 60.87 percent of free float. And quite frankly, when you have these kinds of numbers in a stock like this, it doesn't take much buying pressure to really see insane spikability.

You saw proof of that the last two times. I think you're gonna see more. My thought process on strategy. Wait and see what happens if this holds above our red directional Sma.

This is a stock that I would argue is a ticking time clock. but you want proof of concept Proof not promises. Okay next Triple B Y So Bed Bath and Boom turned into Bed Bath and very bad. pretty fast.

After meme King Ryan Cohen disclosed to sell we made a bunch of videos on this, but this was a stock we had originally briefed on as a squeeze candidate on the 8th. At about 10-ish dollars a share, it proceeded to run up to 30, brought on by a lack of liquidity caused by excessive shorting, a gamma squeeze from the options chain, and widespread publicity bringing in Momentum and Squeeze speculators. And then it got derailed. and now it's back to the lovely Tens again.

But the squeeze setup is actually pretty damn intriguing once again, but for a different reason. Before the dump in share price, you had a battle of Shorts increasing their positions for many, many months. But now look what is happening. You are in the process of them trying to get out and cover.

Which means they are buying back shares and closing out positions right when Shorts are trying to withdraw from a position. that is when they are most vulnerable because they are buying back shares. Which means that all of a sudden they are creating a lot of buying pressure, which screws the rest of their short position so they want to get out slowly and quietly. So Momentum traders, other short sellers don't pick up on that and beat them to it and squeeze them out.

And it's easy to do that after something like a Ryan Cohen cell where there's just all of this new liquidity. But at this point you have a lot more convincing of a floor and you still have short interest. that's at like 34. So in my view, if anybody is paying attention to this, I think that short sellers that are trying to get out of this are still going to have another run for their money.

Biggest threat to my thesis? Well, probably dilution. Okay next Gct, which is quite juicy tea, so this one may surprise you. and you may be wondering why it even made it to our lovely list today. Well, this was originally an ipo hype play of ours that we briefed on last week at about 24 bucks a share and it ran up to 67 bucks before dumping down to where it sits at now, which is 29 bucks.

The reason that I see this as a short squeeze candidate now is because of what we'll call the Hkd effect. Hkd was a stock that was introduced at 12 bucks a share in July, climbed to 20 and then had this period of time where the stock more than tripled. This little blip here and then it dumped and was quiet for about four trading periods and then boom boom you got the massive massive run from 80 to like 2500 a share. Gct has a similar origin story and I think it's being viewed as something very, very similar in terms of an overall setup.

You had an early pump and now a cool down and a lot of people think it's waiting to explode. Meanwhile, what we can see so far in the early trading on short interest is that it's climbing, which means that net and in effect this could very well be setting up for a bloody battle in the upcoming weeks. And it's one of my top short squeeze candidates and certainly overall setup candidates. Okay, lastly, Party City.

So of the stocks on this list, this one just screams meme Stock the most. You have a very well-known company in a dying industry which will likely eventually go bankrupt, but it's still a fascinating setup, and it's largely because of this. Here, you have this long-winded drop from November at nine bucks, and then you had this accelerated rug pull period on earnings, and then you got this contrarian rally. Contrarian rallies that are almost always in stocks that have terrible, terrible fundamentals behind them and probably on the verge of bankruptcy tend to be a very, very clear sign that you have momentum traders, squeeze speculators going in and trying to bait short sellers trying to bait Algos trying to bait.

Overall, people that think that this shouldn't be trading out where it is, but of course, the market doesn't necessarily represent fundamentals in the short term, right? That's a long term thing. I also think the success of the Triple B Y Rally has caused a lot of people to buy other retail similar stocks retail in the sense that they're both retail stores. I would argue that Bed Bath and Beyond might be more useful than Party City, but what do I know? Maybe it's because I don't get out much, but seriously, people make the connection. They're like, okay, retail store.

What's another retail store that I can buy that could see more people buying in after me? You know, the greater full theory and everything like that. And there's also the idea that hey, this had been floored around 1 to 150 since May, which set the stage for an easy pump. But now and why I bring it up is because you're in a testing ground of relevancy right now. There's not many squeeze plays week over week that are retaining much of their uptrend that they gained during their hype cycle.

For whatever reason, Party City holders are thinking that it's worth holding at post-hype prices that are twice what they were a month or two ago, and that's enough conviction to get this on my radar. What you want to see in a good short squeeze setup is a lot of people coming together and holding a stock at irrationally overvalued levels, and a decent amount of short sellers on the other side betting that this is going to go down because then you're on a collision course. and if you get a lot of Momentum traders on top of those holders all of a sudden, you get that squeezy mcsqueezel and so that is enough to get it on my radar. Now what I don't like about this is I'd argue it probably is the weakest short squeeze setup on the list.

It's short interest is only at about 12.19 To me, anything above 10 is a qualifier for a short squeeze candidate, especially if it's a little bit more illiquid. But I have to admit the setup is not nearly not nearly as solid as the other ones on this list, nor does it have the ipo effect of Gct going forward. So what I will say with the stock: I don't want to be a party pooper, but what I will say with the stock is it's worth having on your radar and it's worth having on your list. I'm just not thrilled about it.

But anyways, folks that caps off the video and a quick reminder at the end of the day, these are stocks that I believe have squeeze setups that are more or less favorable. But the truth is that you could have the best race track in the world. but if you have no one driving on it, you don't have a race. And so if you are going to play, make sure that there's other people racing on this because if you get some momentum in it, that is when things start really getting crazy and really quite hairy.

Number one, make sure that you have proof of concept, Number two, make sure that you have real risk management, and number three. Well, I don't have a number three, but make sure you do the first two things. Now a word from Capitalist Charlie: If you want solid lessons on how to analyze setups, risk, manage, create trading plans, play different types of opportunities, And of course, you also want access to our daily morning briefings where we narrow down the hottest catalysts that we see each day and present them as battlefields. Well, I'll go ahead and put a link to Zip Trader you below as you know coupon code: Recession 50 will get you 50 off and that expires Labor Day link below.

If you want to learn more, there's also a link down there to get 13 free stocks with Moomoo. Excellent trading app and trading platform. Anyways, folks, our plugs aside, have a great rest of your day and we will see you tomorrow.