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Wall Street hedge funds famously lost billions of dollars going head-to-head over GameStop Corp. (NYSE: GME) with the retail traders of Reddit. More than one fund even went under into insolvency during the early 2021 short-squeeze battle royale.
Did Wall Street learn any lessons from those massive losses? No, not really.
But that's cool with me - more money for the rest of us.
There's still big Wall Street money out there, shorting lots of stocks. I can see it clear as day because my proprietary algorithm helps me track unusual options activity along with several other indicators - that gives me a clear signal a stock is getting ready to move in one direction or another.
S.C.A.N. hit on these three stocks during its most recent run - they all have high short interest and could make big moves to the upside as regular traders and Wall Street duke it out...
Wall Street's Big Loss Is Your Big Gain
Like I said, these three names are flashing bright on my screen this week because of promising - and I'd say unsustainable - levels of short interest. While watching for the squeeze, any or all of them would make a decent speculative long position for folks comfortable with their risk tolerances, and I intend to let my Super Squeeze Profits research readers know how they could trade these for potential profits with options when and if the opportunity comes - you're welcome to learn how to join us.
Hyzon Motors Inc. (NASDAQ: HYZN) ought to be familiar to folks up on the latest in low- and zero-emission vehicles. This Silicon Valley startup is working toward delivering hydrogen fuel cell-powered big, heavy trucks (think "18-wheelers on hydrogen fuel) as well as smaller commercial vehicles (think "vans on hydrogen fuel"). Hyzon reported a second-quarter loss - which shouldn't surprise anyone in the startup scene - even as it's just starting to deliver its next-generation vehicles in Europe. Wall Street obviously smells blood in the water here, but I think the shorts will get wiped out here given the immediate, growing demand for electric and zero-emission vehicles.
Wilmington, Del.-based Cano Health Inc. (NYSE: CANO) operates medical centers and clinics in four states - including two gigantic markets in Florida and Texas. It's a healthcare company, at the end of the day, and it's operating in two states that are being absolutely ravaged by the delta variant of the coronavirus right now. The company recently reported negative net income of $28 million, hence the big short positions, but I wouldn't bet against a healthcare company in the midst of a surging global pandemic.
The world's second largest airline by revenue, American Airlines Group Inc. (NYSE: AAL), was on my watch list not long ago. American is being shorted by speculators betting on fresh COVID-19 lockdowns and a reversal of the recovery we've seen so far. I could be wrong, but I'm not seeing any moves toward the March and April 2020-style lockdowns we went through last year. Now, it's true that just yesterday, Hawaii's governor, David Ige, publicly asked out-of-state visitors to stay away from the islands, but so far, he's just asking. Travel and leisure spending remain high, and the hard-fought recovery there doesn't seem to be reversing anytime soon. Again, I think the people and institutions shorting AAL shares right now are going to lose big, and they'll bid the stock price sky-high when it's time to cover and head for the exits.
I don't think any investor here would fail to recognize a big-name, major airline - especially one primed to put dollars in pockets - but right now, some of the market's biggest profits are coming from a rare class of stocks you never hear about. In fact, these stocks are practically blacklisted - one Wall Street firm actually prohibited its brokers from offering them to clients. The thing is, the top performers in this niche have seen 2,953%... 4,801%... 12,754%... even 22,207% in less than a year. You've got to hear what Shah Gilani's saying about them right now...
About the Author
Andrew Keene is a globally known trader and a renowned expert on all things options.