Hey traders, it’s Matt here.
The market is closed on Monday!
Have a Happy Memorial day.
I hope you get to spend some valuable time with family and friends tomorrow. Maybe get outside, soak up the sun, grill a hot dog. Live that American dream.
When the market opens on Tuesday, it’s back to the grind!
Work hard, play hard! You know?
To get you on the right track for Tuesday, let’s talk about the hottest runner from Friday.
This stock spiked 520%* in one day. And it closed Friday strong, still able to hold some of its gains.
StocksToTrade shows there were more than 800 million shares traded. More than 100 times the outstanding float.
There’s a chance the price spikes higher on Tuesday …
The #1 Stock On Tuesday
When Tuesday rolls around, even during premarket hours, I’m most interested in Innovative Eyewear Inc. (NASDAQ: LUCY).
It’s a massive short squeeze from Friday, another victim of the meme-stock resurgence caused by Keith Gill’s posts on X.
Here’s the full story from my mentor, Tim Sykes.
LUCY was on a painful grind lower ever since the spike in April of 2023. See the chart below where every candle represents one trading day.
LUCY chart multi-month, 1-day candles Source: StocksToTrade
Shorts were in control of this stock.
But as we’ve already seen with HOLO, GME, FFIE, etc. … The short selling strategy is overcrowded in 2024.
There were too many short sellers in LUCY. And when a few bought shares to get out on Friday, the bullish momentum caused a domino effect of panicked short sellers blowing up.
We usually see big moves like this on Fridays because short sellers are scared of holding over the weekend. The stock could announce bullish news out of nowhere … That’s why there’s a higher likelihood of a short seller buying back shares to exit their position.
Now, from this point, we’re not sure whether the squeeze exhausted itself on Friday.
These 5 “Silent” Stocks Will Piggyback Tesla’s Meteoric Rise
I hear many “experts” telling people to sell their Tesla stock while it’s up 41% since the beginning of 2023.
But I’m not leaving. In fact, I’m doubling down. Not just on Tesla…
But on 5 “silent partner” stocks set to piggyback on Tesla’s moonshot.
Most people didn’t expect Tesla’s 41% spike, but just wait until you see what happens next.
It could spike higher on Monday, it could sell off. But in both scenarios there are profit opportunities due to the extreme volatility.
LUCY spiked 520%* on Friday and closed near the highs. Without announcing any bullish news. There’s bound to be a pullback and intraday volatility.
We can take advantage of that volatility using Tim Sykes’ 7-Step Framework.
Study the common chart framework and get ready for Tuesday morning. Remember, there will likely be opportunities during premarket hours. A trader can wake up before their day job, make a trade, and then go about their day.
Pay attention when the market is hot.
Have a great Memorial Day!
I Almost Forgot …
Make sure you’re watching the Breaking News scan on Tuesday morning.
LUCY is a great runner from Friday that could show us follow-up profit opportunities … But to catch Tuesday’s runners before they turn vertical, keep an eye out for Breaking News alerts.
Cheers,
Matt Monaco
*Past performance does not indicate future results