Shorts Got Squeezed AGAIN! This Time It Was Another +500%

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Transcript

What's up, everyone? All right, in
today's episode, we're going to break
down the biggest mover in the market
today. We have a stock that squeezed up
over 400%
from a low of $2, $3 a share up to a
high of over $24 a share. It was
actually up over 500%. Right now, it's
at about $19, $20 as we go into
after-hours trading. This stock caught a
lot of people off guard, me included.
So, let's go ahead and jump on the
screen share and start breaking it down.
The ticker is AMIX.
It has a float that is very low. In
fact, it actually reports as being even
lower than it actually is, but they
recently did a reverse split, a 21 to
one reverse split on June 24th, as you
can see right here on the daily chart.
So, if we go into the filings on this
stock, we'll type it in, and we look at
their last quarterly earnings report,
you will see that their shares
outstanding as of June 10th was about
11.4 million shares. So, divided by 21
gets you around a 400, 500,000 share
float. Okay, it's a very low float, and
today it makes this incredible move. So,
here's how I got caught off guard by it.
When it first started popping up this
morning, first of all, we didn't have
anything else that looked good, and so I
didn't have any cushion on the day. I
was just sitting tight. I was being
patient, which is typical, nothing
unusual there. But when this first
started to pop up right here,
I thought, "Wow, you know, that's a big
move right there." It squeezed all the
way up to a high of 4.56,
um but as I zoomed out my chart just a
little bit, I recalled this previous
move from last week where the stock had
squeezed up, pulled back after hours,
popped up pre-market, pulled back,
popped up, and then squeezed at the
opening bell, but then ended up selling
off and over the next couple days coming
all the way back down. This is a
one-minute chart, so it's a little bit
harder to kind of visualize the extremes
of the move, but if we look at the
five-minute chart, you can see here.
I'll click on auto. This is what it did
um just last week. So, we get this kind
of big move here after hours,
pre-market, squeezes up, and then sells
off as the day goes on, pops up the next
day a little after hours, then sells off
more, and within a couple days it's
given back pretty much the entire gain.
So, when it started to pop up this
morning, my initial thought was no, this
is the backside of this move over here.
And often when you have a move like
this, any pop like here or here on the
backside of a move
is short-lived. It doesn't last long,
and it rolls over. So, I try not to get
caught into over-trading the backside.
So, what I ended up doing was I drew a
trend line right here from the top of
this candle from the other day at $7.25.
Boom. And when it started to squeeze up
this morning, you can see it went
straight to that level, no surprise. So,
if you didn't zoom out, and you didn't
see that level, you might not understood
why it was having an issue at $7.25.
In any case, let's look at the 1-minute
chart. So, this morning it starts to pop
up, and initially it hits the scanner
right here at about 8:15, which is a
little bit of an unusual time, but in
any case it hits the scanner, it pops
up, and it goes straight up to 460, and
then it drops. The second candle on
higher red volume, that's a red flag.
And I looked at it, checked the daily
chart, zoomed out, and said, "No, I
don't think so." So, then I'm paying
attention to other stuff. Then it pops
up right here and goes all the way to
five, and I was like, "Well, I don't
know, that's
whatever, it's probably probably not
going to go that much higher." Goes to
six, goes to seven, and hits a high of
$7 here, and then 7.25. And so, this
whole little range, I didn't take any
trades on it. I just said, "Well,
I don't I just don't think it's really
going to work. I feel like this is a
trap."
You couldn't deny that there was some
high volume on these green candles, but
then we had a false breakout here,
higher volume selling, another false
breakout here, higher volume selling.
So, anyways, I don't take any trades on
it. It pulls back, goes below VWAP, and
I'm thinking, "Yep, that's what I
expected. Probably going to go all the
way back down." So, no FOMO. I mean, I I
maybe I felt a little bit bummed out
that it went up $2 a share without me,
but that's just the way it goes. I
wasn't that bent out of shape about it.
Then, coming into the open, we end up
with this inverted head and shoulders
pattern,
and we squeeze back up to about 725. We
go a little bit higher, and then it
halts down twice in a row.
Yikes. So, big rejection, then it
bounces back up, and then all of a
sudden, at about 11:30, it's curling
back up. It squeezes here, and it halts
up at 780. Wow. Then, it dips, and it
rips up to $9.50, just shy of 10. It
pulls back, it breaks through that
level, goes up to 1050. So, we get this
squeeze right up here, halts, then it
dips, and it rips up to 1150, dips hard,
pops up to 12. Now, we're in really
choppy territory, not easy to trade, not
easy to manage risk, and it drops back
down. So, you know, it's like, "All
right. Well, now I didn't trade that. I
mean, what am I going to do? You know,
it's eh, it's a little kind of funny
time of the day with the halts. They
slow down the momentum, so didn't really
wasn't really sure. But, what I started
looking at was the daily chart, and the
200 EMA up here at $22 a share.
Uh so, then it ends up giving us this
kind of um
huge recovery right here into another
halt up at 1250. And that's in spite of
this jackknife candle. Then, it halts
up, it opens, and it goes into a second
halt up, now at 14. Then, it opens and
goes all the way up to 17, dips down
here, then it squeezes all the way up to
18, halts, then dips and rips up to 20.
Holy smokes. And then, it starts to
soften and pulls back. We got this
incredible move, and guess what?
I didn't take a single trade on it. So,
here's my P&L for today. I'm at zero in
my main account. I'm at zero in the
small account.
It just didn't happen for me today, you
know? It look, they're going to go with
or without you. So, if you sit on the
sidelines and you're saying, "Ah, I
don't know. I don't I'm not sure. I'm
not sure." Well, then they'll just
squeeze without you. And this squeezed
without me. I could have would have
should have broken the ice at some
point, but
I never did during the pre-market
session, the window when I typically
trade the best. It really wasn't that
clean. And the big move here later in
the trading session between 11:30 and
12:31, that's kind of not the time of
day I typically expect to catch a big
move. It's not when I'm typically
trading. The halt obviously slowed down
momentum. You could see there was
definitely some chop in that area and
some jackknives. So, you know what?
It's also entirely possible that I could
have traded this through the whole
session
and
managed to lose money.
It's possible. You know, you always
assume, "Oh, if I traded that, of course
I would have made money." Not
necessarily. I could have bought at the
high, got stopped out on a jackknife,
then added back as it curled back up,
then caught another rejection. And you
catch a couple trades the wrong way with
a little too much size, and it can be
really hard to recover from it. So, you
know, look, it's the second day of the
month. Yesterday was a good day, green
in the main account, biggest green day
ever in the small account.
I knew that today carried some risk
after a good green day yesterday I would
come in and give it all back. After all,
isn't that exactly what happened What
was it a week and a half ago that I had
a big green day and then the next day I
lost $7,000
in the small account. It was last
Tuesday. It was a week ago today. And
then I didn't take any trades Wednesday,
Thursday, and then I came back Friday
with a nice $4,000 winner, and then I
was back at it Monday with a $10,000
winner. So, you know what? Today I was
hands-off.
And although I feel a little bit bummed
out that I didn't get any trades, I
don't feel that much FOMO really that I
missed this opportunity here because it
was short-lived. Missing this move later
in the day,
that would only be discouraging if I
traded, you know, 7:00 a.m. to 4:00 p.m.
every single day, and I just don't. I've
got other things I'm working on. I've
divided my time that way, and so I've
said, "Listen, this is the window I
trade. This is the window I teach. This
is the window I'm working on the
classes, and this is the window that's
for me for spending time with my kids
and doing other things." So, I'm doing a
little bit of a later recap here today
because and I wasn't planning on doing
one. It was a no-trade day, and there
wasn't much to cover in the pre-market
session, but because AM I X ended up
making such a big move, I thought it was
worth discussing cuz it did obviously
rally back up. So, aside from that, what
was our second and third leading
gainers? You know, we had QNME, 23
million share float, 120 million shares
of volume.
Uh AM I X, by the way, had 114 million
shares of volume. AD CM, 74 cents a
share, that's too cheap. IBTA, you know,
so we really didn't have anything other
than AM I X. That was the one stock
today, and uh for me, it's just going to
be one of those days where I didn't get
much profit on it. Now, one thing that I
will say is that when it was sort of
choppy this morning, I asked myself, "Is
this a stock that we have to worry about
them doing a secondary offering?" With
FCUV the other day, we noticed that
their um
last 3 months, last quarter, they spent
about a million dollars, a net loss uh
of a million dollars, but they had 6
million on the balance sheet. So, I
thought, "Well,
they might do an offering. I mean, you
know, the stock is up 1,000%, but they
don't they're not desperate to raise
money." But then when I looked at um AM
I X, I looked at their uh earnings here,
and they spend a lot of money. I mean,
they're really burning cash, and they're
going to need to raise money to you
know, support that that spending. So,
this was total operating expenses in
2026
$17 million.
2025 was $11 million. So, they're
spending a lot of money as you can see
right there. We go further down on the
balance sheet. What's how much cash do
they have? So, as of March 31st, they
had $7 million approximately in cash on
the balance sheet. All right, so, you
know, they've got some cash here, but
you know, for the first 3 months that
ended as of March, they also
you know, I mean they clearly Oops,
where was it?
This was it right here. So, the research
and development, the total operating
expenses $17 million. So, how are they
paying their bills today? It's August. I
don't know. So, now this is where, you
know, just on a high-level view, this
feels like the type of company that we
may very likely see that they've done an
offering.
And now I could be wrong. Looks like
they might have
done 2.6 million dollars of warrants, a
couple
back in What was that?
July.
So, you know, there may have been some
other ways they raised money between
March and the last
filing or between now and the last
filing in March, but nonetheless,
you know, this is this is a company that
has
clearly a history of spending a lot of
money and they need to find a way to
raise the money and typically they do
that by selling equity, selling shares
on the open market, either directly on
the open market or to institutional
investors. So,
look, it didn't stop stop the stock from
going up 500% today.
Shorts got squeezed and longs jumped on
and rode that momentum. And I sat on the
sidelines. Well, I'll be back at it
tomorrow. And maybe tomorrow we'll have
a move like this. Now, if we had a move
like this pre-market where a stock went
from $7 to $20 a share, I mean, I would
absolutely crush it. It wouldn't be
stopped by halts. But in order to have
that kind of move, this was uh fueled by
shorts getting overconfident in this
area, where you had a pretty decent
amount of volume for shorts to take big
positions, and then they got squeezed
out here. So, pre-market, there's not
always time for shorts to get trapped,
which means in order for a stock to go
up 1,000% pre-market, you're more
dependent on the actual underlying
catalyst being really strong. When
you've got a really good catalyst, it
can still happen. Uh this one didn't
really feel like it had a particularly
strong catalyst. Um another interesting
note, SLXN SLXN here, this one popped up
um with news at 9:15, positive
preclinical findings demonstrating
multi-mechanism immune sensi- uh senses
sensitization, blah blah blah blah.
And so, initially, it pops up to 240,
then it drops down to a dollar 40,
and you just never know. You know, you
got a headline, it's like, is that a
good headline? Is it a bad headline? I
can't really tell. So, the the price
action is what sort of answers that
question for us.
In any case, if you guys want to watch
over my shoulder, make sure you check
out the 2-week trial. There's a link
pinned to the top of the comments, and
linked in the description. And I'll
remind you, as always, trading is risky.
There's no guarantee you'll find
success, whether you trade with me, or
you learn on your own. So, please manage
your risk by practicing in a simulator
before you ever put real money on the
line. And with that, I'll see you guys
bright and early at 7:00 a.m. tomorrow
morning.