Daytrading Army Unleashes Furious Cascade Of Short Squeeze Meltups

Daytrading Army Unleashes Furious Cascade Of Short Squeeze Meltups

In another insane day for small-cap stocks, which has seen the relentless forced short squeeze in GME continue, more than doubling the stock in the premarket before settling up some 40% higher…

… with the squeeze now moving to the second most shorted stock (as per our Friday preview) namely FIZZ…

… which as a reminder we showed late last week was the 2nd most heavily shorted Russell 3000 stock after GME…

… this morning Bloomberg points out that in addition to the buying frenzy among the most shorted stocks – which we have said ever since 2013 is the only “strategy” that makes sense in this insane market – the retail daytrading horde is now also ramping penny stocks, starting with BlackBerry, the maker of the once ubiquitous smartphone, and retailer Express, which were some of the better-known names rallying after plugs on social media stock trading forums.

To wit, BB surged as much as 41% on volume already more than double the three-month daily average and gaining for a seventh session; the stock soared past a nine-year high (this happens just days after company insiders unloaded a boatload of shares).

Shares of lesser-known small cap health-care companies were also soaring, including Vyne Therapeutics, Atossa Therapeutics, Senseonics Holdings and Zomedica all climbed in Monday’s trading.

Some more examples:

  • EXPR soared 123% as over 73 million shares traded hands, extending gains into the third day

  • AMTX (a Biofuel name ) jumped 76%, trading volume was more than 5 million shares

  • VYNE gained 59% on volume of over 20 million shares; the stock appeared on Robinhood chatrooms after the maker of skin medicines revealed a contract on Thursday but didn’t provide any financial details

  • ATOS rose 34%; the stock was touted on Reddit ahead of a presentation from the drug developer on Tuesday at the Precision Medicine World Conference where the focus will be on Covid-19 therapies
  • SENS added 28%; the stock had advanced 437% since Dec. 22 through last week after gaining social-media steam
  • Another newly minted retail favorite, ZOM climbed 14% after reaching a distribution pact on its first product; the stock had gained 398% between Dec. 22 and Friday

And so on. Expect a continuation of these insane moves until the Fed finally does something, which probably won’t happen for a long time…

Tyler Durden
Mon, 01/25/2021 – 10:02

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