Thread by @itradeitall1

#tradingtips
•What makes a stock go parabolic and how to find them
Main reason for a stock going parabolic is shorts. For an example, let’s say a stock goes from 4 to 5 off of news that Stanley Morgan gave them a PT upgrade of 6. Shorts will see this as weak news and start

to pile on in for a short taking positions at 5 dollars (most shorts like to take positions at psych numbers, I talked about it briefly but will cover it more into detail in the future). The stock blows through 5 dollars and is now at 5.50 from more buying pressure.

Shorts are now in a pickle and have to buy back their shares before the stock really takes off. So they buy back at 5.50 with more buying pressure coming in. So now that’s double the buying pressure along with new shorts taking a position at 5.50 causing the stock to go parabolic

and new shorts getting squeezed out. The pattern continues until shorts finally take control and people become fearful and take profits.

•how to find parabolic stocks
-A great website for information is finviz.com, you can find anything there.
-Look for floats under 20 million
-Look for high short interest stock, the more crowded a stock gets with shorts, the easier it is for them to get squeezed out

-A great example was $CARV not too long ago. @realwillmeade talked about how the short interest was very high, float was under 20 million (believe it’s even under 1 million), and it had a history of going parabolic. The stock went from 10 to 42 in just 2 days