The larger market is under pressure this week.
The continuing war in Iran has everyone on edge. And in general, there’s a bearish sentiment in the market.
But that opens the door for a very specific kind of setup…
I’m trading these parabolic spikes.
When there’s fear in the market, short sellers get more aggressive.
And when we combine aggressive short sellers with small-cap stocks, we get massive short squeezes.
For example, Zhengye Biotechnology Holding Limited (NASDAQ: ZYBT) already spiked 262% today.
Look for a break past the morning highs at $2.50 per share… this stock already halted multiple times today due to extreme volatility, it could jump above $2.50 any minute.
When we’re looking for short squeezes to trade, pay attention to the size of the float…
A low float helps the price spike higher when demand increases.
We generally look for stocks with less than 10 million shares. ZYBT only has 5.6 million shares in the float.
The larger market is shaky, but things are business as usual among small-cap runners.
Keep an eye on ZYBT and use this pattern to trade its explosive spikes.
Cheers,
Tim Sykes
