475% Short Squeeze in 30 Minutes

What's up everyone? It's Wednesday morning and 
in today's episode I'm going to break down one  
of the biggest movers in the market yesterday 
because that sparked some momentum into the  
afternoon [music] after hours and even pre-market 
this morning. And we're going to work to create  
a profile for that stock. Because if we can 
better understand how that stock was able to  
go up over a thousand% in one day, which was 
very impressive, then we have a sense of the  
ingredients that allowed that big move to take 
place. And if we look at another stock that pops  
up on the scanners, we can see how closely the 
next stock meets this profile. Typically, I like  
to get into a theme in the market where we have 
a profile that we know is working really well.  
So much so that when we see a stock that meets 
it, I'm jumping in aggressively, feeling very  
confident we'll get at least a 100 to 200% move, 
but sometimes even more. We had a really good  
theme last summer with crypto treasury strategies 
in 2025, a full year ago. During this summer,  
we had a theme of Chinese stocks with no news. 
That was the profile of what had made big moves.  
But that was really tricky because you can't 
just jump in every stock that has no news that's  
Chinese. That doesn't really work. So there were 
some ingredients that allowed those big moves to  
occur that weren't visible to us. Maybe something 
going on behind the scenes. So in that specific  
theme, we weren't able to get really dialed 
in in terms of predicting which one's going  
to go and which one's going to uh flop or fail. 
And that may be a little bit true with the move  
from yesterday. So, let's go ahead and jump on 
the screen share and start breaking it down. We  
will definitely be talking about BENF today. This 
one went up 475% in 30 minutes, which was really  
impressive. This is a huge move. So, and this 
is the stock that I made the most money on. So,  
we're definitely going to be talking about this 
today. But first, let's take a look at Jag X. So,  
Jag X yesterday ends up making this unbelievable 
move, as you can clearly see right here. here. I  
mean, this thing went from a low of like $3 
a share all the way up to over $65 a share.  
Holy smokes. And look at some of these curls. 
A curl to a new high, a curl to a new high,  
a little pullback, a little pullback, and then a 
push even higher to a high of $65. That's pretty  
wild. And if you feel FOMO, you're not alone. I 
didn't trade it at all yesterday. We had this huge  
move and I didn't trade it cuz I was done for the 
day. I was up 10 $13,000. I was 13,000 yesterday  
and then I called it. So I missed everything that 
happened after I left. But what I will tell you  
is that this stock did not fit a current theme. 
Essentially, it popped up. It halted one, two,  
three, four, five times in a row. So shorts 
got caught by surprise and long traders are  
doing what? I'm just chasing it basically. And you 
can make some money chasing it, but that's pretty  
risky. Then it pulls back, then it curls back up, 
pulls back and eventually pulls away. But it would  
have been hard to have the confidence to take big 
size in this area because that was already over  
$20 a share. That's when it starts to get 
expensive. You've got bigger spreads. And I  
think probably what happened on this was that 
there were some shorts that got stubborn and  
they got squeezed out. And it was their buying 
that pushed this so much higher. It wasn't long  
biased traders who were actually excited about 
the catalyst or thought that this stock had  
the potential to do something incredible. It was 
just simply shorts got squeezed. So, this stock,  
if we start to break down the profile of it, it's 
got a float of 467,000 shares. That is definitely  
noteworthy. Okay. It's also a recent reverse 
stock split. So, this is a company that's had  
to do a reverse stock split to keep their price 
above a dollar. And you can see the split was just  
a couple days ago right here. So, you know, now 
we start to see, okay, they do a reverse split,  
very common. And then often just after reverse 
split, the company puts out a news catalyst. Now,  
the float uh was 400,000 shares. The market cap 
was about $2.5 million. A lot of these companies  
are trying to make sure they can get their market 
cap back up above $5 million because of this  
pending SEC rule or NASDAQ rule that any stock 
with a market cap below 5 million could face being  
delisted to the OTC market. So, a lot of these 
companies are worried about that, which means as  
their stock pops up, they may not be inclined to 
do an offering right away because what would an  
offering do? Suppress the price and push it down. 
So, this made this huge rally and came back down.  
There was no bad news that sent it back down. It 
just kind of went out of favor and it seems like  
shorts got pretty aggressive and pushed it down, 
which is risky considering how low the float is.  
Now, many of you guys know that I have a couple 
tools that I use for checking short interest. Um,  
and Ortex is one of them. Ortex is a tool that 
I started using in during the GameStop short  
squeeze. And so, if I type in Jag X here, Jaguar 
Health, and we go to uh shorts right here. So,  
we'll click on this. You can see what the 
current short interest is, which shows us 12%.  
Then you can see the utilization which is the 
number of shares that are available to short  
that are currently being shorted and 82% are being 
shorted which means there's only 20% shares left.  
So there's not a lot of shares available. Um and 
the cost to borrow is elevated but not as elevated  
as we've seen with other stocks. So BENF just as 
a point of comparison this one short interest is  
43%. Cost to borrow is up 200% and the utilization 
is 98%. What kind of move did we get on BENF  
today? So BENF puts in a really big squeeze. Now 
BENF is not sympathy to Jagex because BENF doesn't  
meet the profile of being a recent reverse split. 
This is important. Recent reverse split. And I  
think market cap um uh oops market cap market 
cap sub 5 million. the lower market cap is is  
encouraging these companies not to do an offering 
right away because they want to get their stock  
price up a little bit higher. Now, Jagex did have 
a news catalyst. Not that it felt particularly  
meaningful, but it did have a catalyst out there. 
So, there was that. And of course, we know that  
the price on this was between 2 and 10 when it 
began moving, which is important. The relative  
volume on Jagex, I mean, the relative volume 
was unbelievable. This is a stock that typically  
trades uh typically doesn't really trade at all. 
No one's paying attention to it. The volume these  
these other days here is like 200,000 shares and 
then on this day it did 27 million yesterday.  
Now 27 million um is not the most insane volume 
we've ever seen, but it is obviously higher uh  
certainly than the average. So that was Jagex. All 
right. Well, guess what? Wheeler Investment Trust,  
Real Estate Investment Trust, this is a REIT. They 
also have a recent reverse split. They've they've  
done a lot of reverse splits over the years and 
they pop up as well. kind of similar because it's  
a REIT with a very small market cap. The problem 
with this one is that it has this history of doing  
so many reverse splits because every time they do 
a split, the stock manages to go lower and then  
they do another split and it goes lower. So, it's 
very hard to trust this one. But, nonetheless, it  
is up 274% today and it has put in a nice bounce. 
Pulled back, bounced up, and I took a trade on  
that right in there. So, let me share with you my 
P&L for the day. I'm sitting right now at $9,96.81
just under two times my cold market daily goal of 
5,000 a day or half my hot market daily goal of 20  
grand 22,000 on BENF with a $22,000 loss on IMCC. 
So those two cancel each other out unfortunately  
and Wheeler and MSS are the other two that I'm 
green on. So for Wheeler um because I've got I'  
I've traded this many times in the past. I was a 
little cautious about it, but I did take a trade  
on this uh at the break of VWAP right here. We got 
this curl up. I jumped in and we got this squeeze  
as you could see for about $6 up to 7, which was 
pretty decent. I was hoping that we might break  
through that pivot right there of 727, which would 
then give us room up to the high a day. We weren't  
able to do that here, but we were able to do it 
at the open when it went from 580 all the way up  
to 840, but it did not trade it right there. 
No trades on that in that area. Okay, so that  
was Wheeler. Decent move. It does fit the profile 
pretty closely. Low float, recent reverse split,  
market cap sub 5 million. Uhoh, no news. So, no 
news on this one. And um this is one Jagex did  
not have not a terrible history um which is saying 
a lot for a small cap stock. So it doesn't have a  
terrible history. Wheeler has a pretty terrible 
history uh which makes it much harder to trust.  
So all right. So then we had um NDP as well. No, 
IPDN, sorry. IPDN also put in a relatively big  
move after hours. This also has a somewhat recent 
reverse split as you can see right there. So,  
this puts in a squeeze from four up to 9. It 
pulls back. It pushes higher pre-market and then  
it starts to unwind. Market cap and float both sub 
5 million, very low float and low market cap. So,  
this one meets the list as well, except that 
there's no news on it. no clear catalyst. Jagex  
had a catalyst. IMPD um not or IPDN not the most 
not not as bad of a chart as um as Wheeler. Jagex,  
you could see this chart. I mean, it's it's 
sold off, too. It's not great, but it's not  
as bad as Wheeler. Wheeler is really bad. So, 
all right. So, we got IPDN. Then this morning,  
um we sit down and uh so I took my first trade 
this morning. Let's see. Let me back this up.  
Um, so you can see the P&L right there again. 
Uh, so first trade was on Wheeler this morning.  
So that was my first trade. Broke the ice, 
made $7,000. Second trade was on IMCC. IMC  
is an Israeli company that put out news 
of uh well the offering news came later,  
but they first put out a headline of um a entering 
a non-binding agreement to acquire 51% of space  
defense innovations. All right. So, they're doing 
a little shift in the business model here. Um,  
which is interesting. They've been a medical 
cannabis platform serving patients in Israel  
and Germany, a few other places. Uh, so they're 
doing a little shift by investing in the space  
company. The stock immediately squeezes up 
and you know, the way I kind of felt about it  
was that I wasn't sure I could really trust it. 
And so, it ends up going initially from five up  
to 520 up to six right here. Then it pulls back 
right through here. And on this first pullback,  
I bought this dip at about 550 560. So I got in on 
this dip right through here. It was actually five  
um 570s. Then we get this squeeze up to to 8, 
which was nice. Then we pull back a little bit. We  
pop up, we dip down, and through this move as we 
rallied up, I was able to lock up a total profit  
on IMC of about $7,500. I didn't trade it super 
aggressively. It kind of went a bit without me.  
um you know it was a little bit of a grinder 
but it did keep going higher. So then it ends  
up coming back and pulling sideways and right 
down here it drops. It goes it goes down below  
VWAP and right here as it popped back up through 
VWAP I bought 40,000 shares. I sized up because I  
was looking for this squeeze back through the high 
and I got rejected. It slammed back down here and  
I went from green on it by $7,000. I lost 15 grand 
on that trade. So, from green seven to red seven.  
It sells off. I'm can't believe it. Then it comes 
back up again. Sure enough, it's back up again.  
And I say, "You know what? Fool me once. Shame on 
you. Fool me twice." Well, I'm not going to get  
fooled twice because this is going to work this 
time. So, I got back in and it rejected again. So,  
actually, I did get fooled twice. So, the second 
one technically legally was shame on me. very  
disappointing. Then it goes sideways, comes back 
up. I'm watching it again. And then it flushes a  
third time all the way down to $2 a share because 
right at that moment, breaking news came out that  
they did a secondary offering. Usually companies 
don't put out good news and a secondary offering  
within an hour of each other. Why not? because it 
can be interpreted that they put out the good news  
to push the price up only and knowing that they 
were going to put out bad news an hour later.  
It's better to put them both out at the same time 
or separate them by days. So you don't have the  
impression you put out the news just to inflate 
the price of the stock only to then have bad news  
come and you know sort of cuz now what should have 
happened was basically you put out the news and  
nothing, right? But instead, you got a big move 
and a big drop. And so shorts one and some longs  
got burned and that's not really that's not great. 
It would have been better if nothing happened,  
which is more likely if they just hadn't put out 
news at all or they put the news together. Um,  
but anyways, they they didn't. So this is what 
happened. It drops down to two, bounces back up,  
and is now sitting at 295. So in a total of 
like four trades, I was green and then gave  
back the profit and went red on IMC. That was 
disappointing. So then I switched gears to BENF.  
BENF at that point was clearly moving higher. 
It was the obvious stock and although I didn't  
really want to trade it, um I couldn't ignore it 
any longer. And so I ended up jumping in at about  
248 right here. Uh and got the squeeze up to 280. 
So we got that little pop right there that gave me  
a couple thousand. It pulls back. It comes back up 
again. I'm actively trading in this range looking  
for the curl and buying the dips down here. here. 
We got a really nice dip in that area. And as we  
got a little bit closer to the opening bell, we 
got another curl and I traded all the way up to  
here with the best exit being at about $3 a share. 
I'm a bit surprised at how many times it's halted  
coming back down. Um I I would have expected this 
would have kept going. I really would have. So,  
you know, the challenge with these halts is that 
when you're stuck in a halt, you have no control.  
You're just stuck. And so it's just so much better 
to trade these in my opinion pre-market or after  
hours where you can get in and out and it trades 
more in a more liquid form and you're not stuck  
because now you just keep getting stuck. It's 
just a disaster. So I was disappointed to see  
that rolled over. Um but in any case, you know, 
this one dropped. This one's not again doesn't  
meet the profile. It's not a recent reverse split. 
It's a stock that's been selling off. It just they  
came out with news and we got this rally. So, it 
is a relatively low market cap, but not below 5  
million. So, anyways, you got a big move on 
that. And then MSS, this one popped up. Um,  
I jumped on it for the curl right here from 269 
up to three and we got a move up to 320. So,  
in total, I traded four stocks. I'm green on three 
out of the four. you know, today's not a great day  
in the sense that I started um and if we jump 
on this the whiteboard. I started um you know,  
pretty nicely with two trades more or less two 
stocks putting [clears throat] me up 10,000 and  
then in one trade well actually I should draw that 
a little differently. So, it was more like here  
to 10,000. And then in one trade, I um you know, 
flipped to red down here. And then I was able to  
rally back up um and finish, you know, basically 
right here. So, finishing just a little bit below  
my high. But that's not really how you want your 
day to go. I stepped up to the plate here thinking  
I had a cushion and I was going to get another 
move higher, but that just didn't work. So, uh,  
it's disappointing, but nonetheless was able 
to finish the day in good shape. And while I've  
been recording this recap, John's in the room 
giving his market commentary to our members,  
walking them through what's moving. And as you 
can see, WHLR, it's continuing to be volatile.  
It's continuing to give opportunities. So, make 
sure you guys check out the twoe trial with the  
link pinned at the top of the comments and the 
description. So, you can come on over, you can  
listen to my commentary, you can listen to John's 
commentary, you can attend the mentor sessions,  
and you can use this software right here to test 
out what it's like for charting, for scanning,  
and for searching breaking news. All right, thank 
you guys. As always, reminder, trading is risky  
and my results aren't typical. And there's 
no guarantee you'll find success whether you  
trade with me or you learn on your own. So, 
please manage your risk, take it slow, and  
I'll see you back here bright and early streaming 
tomorrow at 7 a.m. for members at Warrior Trading.