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Welcome To the Beautiful Short Squeeze Summer

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Written by Timothy Sykes
Updated 7/9/2026 5 min read

Every single day.

I’ve been going on about the big premarket spikers and how important it is to get up early and partake (or at least watch).

But there’s another part of these big moves you should understand.

Especially if you don’t like to wake up at 4:00 a.m. (I struggle with it when I’m in the U.S.).

What happens when a stock spikes in premarket and doesn’t immediately fail?

Mind you, it doesn’t matter if the spike is from a real catalyst or a fluff press release.

And it doesn’t matter whether some chat guy in a shady Discord room spiked it another 50% in two minutes.

Because these big moves attract two opposing mindsets.

And together they create…

The Daily Squeeze

If you follow me on X, you know I post charts of the top percent gainers I’m watching in premarket.

All the big movers hit traders’ scans and bring attention.

But not all traders have the same desires about the price action.

Instead, they’re on opposing sides of a pitched battle.

On the one hand, there’s short sellers who laugh at the press release and say…

“This stock doesn’t deserve to be up 50% on the day. It doesn’t even deserve to exist.”

On the other side, you have the longs who ride the momentum up, hoping to catch some small piece of the move.

But what’s been happening the past several weeks is CRAZY. Like this…

Julong Holding Limited (NASDAQ: JLHL) opened in the $3s yesterday (JULY 9).

As if the afternoon squeeze to $15 wasn’t painful enough for short sellers…

In after-hours trading JLHL squeezed to $31.67 in roughly 15 minutes…

JLHL, 2-day, 1-min candle, EPIC short squeeze
JLHL, 2-day, 1-min candle, EPIC short squeeze

That’s a CRAZY 749% in ONE day!

JLHL is just one example.

Again, this is happening every day right now.

Every short squeeze isn’t as big as what happened on JLHL. But the frequency this summer is speeding up.

Even on market down days we’re seeing them.

Could This Be a Summer Melt-Up?

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It’s pretty crazy, if you think about it.

I expected June to be busy, with the end of the PDT. But we’re one-third of the way through July and STILL seeing squeezes like JLHL.

Tim Bohen says there are three forces at work creating the perfect environment for these short squeezes.

I’ve always thanked toxic short sellers for their sacrifice.

But it seems like this summer there’s another layer to it.

Which is why I encourage you to check out Bohen’s “Summer Melt-Up” presentation.

According to him, it’s going to be a “target-rich” environment.

Fire at will.

Millionaire Moves

I went live on X with Matt Monaco yesterday (it was my first time going live on X).

Let me know how you think I did and if you want more videos like this:

Matt started as a Trading Challenge student and he’s been working with the StocksToTrade team for years now.

If you’re inspired by Matt, apply for the Trading Challenge now.

Key Takeaway

Remember, in the past few months we’ve seen epic short squeezes like SmartBird, Inc (NASDAQ: BIRD) which I wrote about here.

I also highlighted 5 lessons from the Avis Budget Group, Inc. (NASDAQ: CAR) short squeeze.

And the list just goes on and on.

We’re literally seeing short squeezes every day.

But right now, with the three market forces Tim Bohen is watching, these kinds of squeezes could start to happen even more.

Definitely check out his presentation and study up on short squeezes because the opportunities are endless.

Cheers,

– Tim Sykes


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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”