| WE WANT TO HEAR FROM YOU I do a ton of sector analysis and use back-tested, proven strategies to beat the market. I use proprietary formulas based on relative strength to track the top 5 strongest stocks… You know, the ones I send you in my new weekly watchlist. But now I want to know which stocks you'd like to see rankings for! All you have to do is reply directly to this email with your tickers!
Now, on to the Weekender!
Short squeeze stocks like GameStop and AMC have taken center stage ever since retail traders on the WallStreetBets subreddit banded together to send these names to the moon.
I haven't talked about short interest in awhile, but there are still some great opportunities out there…
So today is a great time to talk about the best short squeeze stocks on the market right now. And there are six of them, folks, which means you should grab your best note-taking pen and get comfortable!
Here Are the Candidates
◾ Clover Health Investments Corp. (Nasdaq: CLOV): Clover Health has some of the highest short interest on the market at 36.7%! It's also not a big company, with a market cap under $4 billion, which is good because the smaller the stock, the harder the hammer hits when the squeeze comes. Even better? The company is down big this week… so if any buying happens, you could get a big, fat short squeeze. And this is a price I like at right now right around $8.
◾ Workhorse Group Inc. (Nasdaq: WKHS): This is a company we've talked about before... and here we are again. There's a lot going on that sets this up for a short squeeze. For one, it's a small company with about a $1.5 billion market cap. It's also down 20% on the year and... get this… 36% of its outstanding shares are short right now. Without much upside to this stock, it could be a prime target for a short squeeze. If the price gets down to about the $8.50 to $9 level, we could see a massive squeeze that runs it up to $35… $40… or $45!
◾ Arcimoto Inc. (Nasdaq: FUV): This company is even smaller, with a market cap of barely over $528 million. It has been running up some, so I advise caution… But it's been quiet lately and has 34% short interest. And if it drops down to about the $8 or $9 level… all bets are off.
◾ Ontrak Inc. (Nasdaq: OTRK): Ontrak also has a small market cap and as I said, the smaller the cap, the harder the hammer hits. This is one of my favorite potential short interest targets. It has a short interest of 32% and is not doing much but falling this year — it's down 57% year to date to be exact. There's not much downside left, so a squeeze could be imminent… I'd say around the $26 level. And if it does happen, it could easily go to $100.
◾Gogo Inc. (Nasdaq: GOGO): Yes, Gogo has a 239% return on the year, which isn't ideal for a short squeeze. However, it's been quiet lately and breaking down. It only has slightly over a million shares outstanding… and guys are still holding shorts from the $17 level! If it keeps going and drops below the $9 level… watch out!
◾Blink Charging Co. (Nasdaq: BLNK): I advise the most caution when looking at Blink for a squeeze. It does have a small market cap of around $1.45 billion, but its one-year return is a staggering 469%. It's still trading up ever so slightly, but it could go sideways soon. This one isn't quite ready yet. Wait for it to break below the 200-day moving average at about the $10 level. Then we could see some action.
I hope that helps!
Now, let's get to some…
BIG Wins
After making five-month highs last week, the market pulled back to just above the 50-day moving average in confluence with uptrend line support, and a trade alert for Overstock.com Inc. (Nasdaq: OSTK) was issued. We were able to pull in a nice 52% profit!
+51.96% on OST (Sept. 17 $95 CALL). - Entered on July 8 at $$10.20 a contract.
- Exited on July 13 at $15.50 a contract.
First Strike Portfolio consists of a weekly rotation, every Tuesday. This week, one of the five stocks we traded was Moderna Inc. (Nasdaq: MRNA). With news of recent outbreaks and its addition to the S&P 500, MRNA broke out.
+148.40% on MRNA (Sept. 17 $250 CALL). - Entered on July 13 at $16.10 a contract.
- Exited on July 16 at $40 a contract.
New Round of Cyber Attacks Fuels Tiny Cyber Stocks
Every second, $190,000 is lost. That's about $16.4 billion a day… $115.4 billion a week… $500 billion a month… and $6 trillion a year!
But there's another story everyone is missing.
As cyber attacks surge… so do the share prices of the companies fighting them.
The Fed Has No Idea What It's Doing. And It's Sabotaging This Market
It's official: CPI data for June 2021 is out… and somehow things got worse.
U.S. Consumer Price Index (CPI) prices increased in June by the most I've seen in 13 years — with the figure rivaling those during the 2008 financial crisis. Consumer prices rose 0.9% month over month in June, and the CPI rose 5.4% year over year.
And the Federal Reserve is telling us it's no big deal!
Well, Joy of the Trade Head Trader Jeff Zananiri and I agree on one thing:
We're calling B.S. on that one…
Here's the reality of the situation: The Fed doesn't know what it's doing. This global pandemic is uncharted territory, and it doesn't know which direction it should take.
It has no way of predicting what's coming next, and it's losing touch with this new world order. But of course no one at the Fed will admit that, and no one's asking the questions we need answers to…
- Do you really know what you're doing here?
- This has never happened before, so what will you do if X, Y and Z occurs?
- Do you know how miserable it is to be an average consumer with a 40% hike in used cars and a 50% hike in rent?
However, the Fed's inability to take action — after viewing the CPI data for June — to combat obvious inflation is paying off in other areas of the market. And Jeff and I have some ideas about that…
CPI Data Triggered a Surge in Crude Oil
I looked at the continuous contract on crude oil on its monthly chart, and it's sitting right at the edge of a resistance level.
If crude oil goes up so much as a hair, then there's nothing stopping it from shooting up to $100. And Jeff says that's going to be the story of the summer.
And as he pointed out to me, we always talk about low-hanging fruit trades… Well, this is it.
We've been talking about oil stocks since prices were in the low-$60 range and these names were still 25% lower… And oil is still historically cheap, especially when you factor in inflation!
Jeff thinks oil will make a parabolic move and be the crisis point the Fed can't just can't ignore anymore.
I'm inclined to agree. So get ready to pay even more at the pump...
Signing Off
If you're looking for more compelling trade ideas and stock market musings to help you prepare for what lies ahead, here's what other experts at WealthPress are saying:
Thanks for being a MarketWealth reader and enjoy the rest of your weekend!
Roger Scott MarketWealth | 
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