Daytrading Army Unleashes Furious Cascade Of Short Squeeze Meltups

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by Tyler Durden
Monday, Jan 25, 2021 - 10:02 AM

In another insane day for small-cap stocks, which has seen the relentless forced short squeeze in GME continue, more than doubling the stock in the premarket before settling up some 40% higher...

... with the squeeze now moving to the second most shorted stock (as per our Friday preview) namely FIZZ...

... which as a reminder we showed late last week was the 2nd most heavily shorted Russell 3000 stock after GME...

... this morning Bloomberg points out that in addition to the buying frenzy among the most shorted stocks - which we have said ever since 2013 is the only "strategy" that makes sense in this insane market - the retail daytrading horde is now also ramping penny stocks, starting with BlackBerry, the maker of the once ubiquitous smartphone, and retailer Express, which were some of the better-known names rallying after plugs on social media stock trading forums.

To wit, BB surged as much as 41% on volume already more than double the three-month daily average and gaining for a seventh session; the stock soared past a nine-year high (this happens just days after company insiders unloaded a boatload of shares).

Shares of lesser-known small cap health-care companies were also soaring, including Vyne Therapeutics, Atossa Therapeutics, Senseonics Holdings and Zomedica all climbed in Monday’s trading.

Some more examples:

  • EXPR soared 123% as over 73 million shares traded hands, extending gains into the third day

  • AMTX (a Biofuel name ) jumped 76%, trading volume was more than 5 million shares

  • VYNE gained 59% on volume of over 20 million shares; the stock appeared on Robinhood chatrooms after the maker of skin medicines revealed a contract on Thursday but didn’t provide any financial details

  • ATOS rose 34%; the stock was touted on Reddit ahead of a presentation from the drug developer on Tuesday at the Precision Medicine World Conference where the focus will be on Covid-19 therapies
  • SENS added 28%; the stock had advanced 437% since Dec. 22 through last week after gaining social-media steam
  • Another newly minted retail favorite, ZOM climbed 14% after reaching a distribution pact on its first product; the stock had gained 398% between Dec. 22 and Friday

And so on. Expect a continuation of these insane moves until the Fed finally does something, which probably won't happen for a long time...