I don't think you can force anything here. There are a few short squeeze plays out there, but it's more of the usual suspects. Aterian (ATER) is moving along with Sphere 3D (ANY) and Vinco Ventures (BBIG) again. Traders continue to come back to the same old, same old for another effort. Originality and creativeness have seldom been our strong suit. Traders go with what works. And when nothing works, they go back to what worked a few days ago and try again with a concentrated group of names.
I simply find the action uninspiring. Yes, we have a short week, but the "short" part is behind us. Summer is over, but the buyers haven't returned yet. It's not that you need a particular inspiration to trade but the current lack of enthusiasm creates the risk of forcing a trade out of boredom.
Whether you follow social media or television or sit in a chat room, chances are someone found something worth trading. Unfortunately, found is past tense. Whether it is worth chasing is an entirely different question. In that boredom, you might find yourself rationalizing not only why it was a good trade or questioning how you missed it along with the idea that maybe it's not too late to jump on board.
There's probably a reason it wasn't on your radar. No, you're not dumb or a bad trader. Chances are it simply didn't meet your scan parameter or fit in with your trading plan. You do have a plan and parameters, right?
Good. You had me worried for a moment.
Even on the squeezes, I'm not looking to play. These "aftershock" squeezes as I call them tend to come with less upside potential and more reversal risk than the initial squeeze.
I do like the Genius Sports (GENI) reversal off the pre-market dump. This is a name I wrote up recently. I do own it but I'm looking at adding here.
Although the company missed earnings this past quarter, revenue was stronger than expected and the full year looks solid. While I understand the initial revenue disappointment, I view this as a long-term story. The company continues to sign agreement after agreement with DraftKings (DKNG) , WynnBet, and Caesars (CZR) , all newcomers to the team.
I don't care how you slice it, those are impressive names when we're talking about the gambling space. With the NFL, NBA, and NASCAR data feed agreements in place, I expect every company will want some kind of deal with GENI at some point over the next year or two. I don't own this for the recent quarter or for next quarter. I own this one for all the quarters to come after those.
