If you already love trading short squeezes from the long side, this won’t be a surprise.
But I know many new or inexperienced traders who see a chart like this…
And wonder…
How do I even trade something like that?
The answer might surprise you…
Table of Contents
Trade Short Squeezes With 100% Discipline and Zero Greed
The first question many people asked yesterday (July 13) was…
“Tim, why did VEEE move like that?” Let’s pick it apart.
First, Twin Vee Powercats Co. (NASDAQ: VEEE) announced a merger.
The StocksToTrade Breaking News team NAILED it as their alert came out within seconds…
Then, the Breaking News guys sent an alert that VEEE was a chat pump…
What does all this have to do with VEEE turning into a big short squeeze?
First, VEEE is a micro-float stock:
Then, short sellers did what they always do…
Toxic Overagressive Short Sellers Laugh At the News
Most companies with a long term chart that looks like this are TERRIBLE…
Keep in mind that VEEE NEVER traded anywhere near $3,000 per share.
The company did a 1-for-37 reverse split on May 4, 2026.
It also did a 1-for-10 reverse split on April 8, 2025.
That means every share today was 296 shares just over a year ago.
Why the reverse splits? Because the Nasdaq has a $1 minimum bid price to remain listed.
Almost all these small companies are fundamentally flawed. And most are in trouble.
In other words, terrible companies do reverse splits just so they can keep trading.
Enter the Toxic Short Sellers
This is where it gets fun.
First, the company announces the merger. Then, the chat guy pumps the stock like crazy, scalping along the way as his followers buy.
And then…
The short sellers look at the long-term chart, look at the fundamentals, and start frothing at the mouth with greed.
And then you end up with a 1-day chart that looks like this…
Here’s the problem…
Smart Longs Understand What’s Happening
Like SO many of my students who use Breaking News chat and Trading Challenge chat.
Whewwwwwww what a morning this has turned out to be! $AGEN went $2/share further than I thought to nearly $9, $VEEE now up to the $15s, if you're not profiting or at least seeing these awesome runs you are missing out and that's wasteful….do NOT be wasteful, congrats to so many…
— Timothy Sykes (@timothysykes) July 13, 2026
The best part about these crazy big short squeezes is that you don’t have to trade every one.
In fact, if you’re new, simply watching will help you understand how they move.
Yes, they can be scary (especially when they get halted like VEEE did several times).
But once you get used to seeing how they move, you can try a few shares.
You can trade small until you’re comfortable with how they trade.
Most importantly, when these big short squeezes happen, I encourage you to…
Lock It In Along the Way
I CONSTANTLY remind students to lock in gains along the way and cut losses quickly if the trade turns against you.
The key to making these big short squeezes work for you is to have meticulous risk management.
Poor risk management is what gets the dumb short sellers into trouble in the first place…
WHEWWWWWW $VEEE NOW $32+….RETWEET IF YOU REALIZE HOW GREAT THIS MARKET IS FOR LONGS THANKS TO SOOOOOO MANY DUMBASS SHORTS WHO HAVE THE RISK MANAGEMENT OF A HEROIN JUNKIE AND RISK ANNIHILATION DAILY LOL https://t.co/gZUlzfI7lT pic.twitter.com/6GP9Gy8Ncl
— Timothy Sykes (@timothysykes) July 13, 2026
If you can learn to follow those two ideas…
Millionaire Moves
Matt Monaco has been working on something cool that I encourage you to check out. Remember, Matt started under the PDT and even had a podcast called Beyond the PDT.
Now Matt has made over $3 million and teaches for StocksToTrade.
The weird thing is, there are certain big name stocks that Matt refuses to trade.
Instead, he trades what he calls “Super Stocks” that allow you to multiply normal stock returns.
Go here to discover why Matt says the next “Super Stock” boom could start today.
Key Takeaway
We’ve seen a TON of massive short squeezes lately.
And it is BEAUTIFUL for longs.
Remember, if you trade scared, trading isn’t scary.
Just be sure to NEVER fall into the trap the short sellers fall into on every one of these big squeezes…
They get greedy.
It’s not that they’re wrong about the company or the catalyst.
It’s that they have ZERO risk management.
So, stay disciplined and crush the greed and you can learn to take advantage of short squeezes, too.
By the way…
As I was writing this post, VEEE squeezed more in after-hours trading…
Crazyyyyy to See $VEEE now spiking into new day highs hitting $41 afterhours, up from my premarket tweet in the $12s nearly a quadruple today and despite how many of my https://t.co/occ8wKmlgm students and I made $500, $1,000, $2,000, some even making $10,000-$20,000, we… https://t.co/O3e5TaA2PX pic.twitter.com/rpG69UNque
— Timothy Sykes (@timothysykes) July 13, 2026
Wheeeewwww!
I LOVE this SUPERNOVA SUMMER!
Cheers,
– Tim Sykes
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