The Mag 7 went quiet, so I stopped waiting on it.
Somebody called it the lag seven the other day, and I think that is very appropriate. There are pockets of strength in there, but as a group, those names are just boring right now.
So I went looking somewhere else.
Here is what has my attention this month.
We have daily squeezes built up on both the S&P and the Nasdaq, after a full month of chopping and consolidating through June.
We rested, we coiled, and my read is higher from here. I think the indexes are headed for new highs in July.
In that kind of environment, I want one specific type of setup.
Names carrying heavy short interest, coiled tight, sitting right under a level. If the market pushes to new highs and one of these breaks its level, the shorts get squeezed and the move can get big in a hurry.
I went hunting and came back with four of them, short interest running from the low 30s all the way up near 70%. Not names I would put in my kids’ retirement accounts, and I say that plainly in the video.
These are trades, not investments, and I treat them that way.
I walked through all four on video.
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The names, the short float on each one, the exact levels I need them to clear, and the August calls I would use to give the squeeze room to play out.
One of them is coming out of a big base with clean air above it. Goodness gracious, I would love to play that chart no matter what.