Right now, the market is heading towards its last push of bullish seasonality, as earnings season and the risk-on trade combine to drive prices higher.
While many investors see this as the point to “sell in May and go away,” I’m seeing things a little differently this year…
This week, the Centers for Disease Control and Prevention (CDC) will allow vaccinated people to have small outdoor gatherings – without wearing masks.
Another sure sign that May won’t be the end of the market’s revival.
Instead, the official economic reopening is right around the corner.
I believe that 2021 could be the genesis of another “roaring 20’s” era, and there are a handful of stocks that I’m adding to my portfolio to profit from our transition back to normal.
There has never been another moment in history where the entire world economy was halted to a standstill by a virus, and mark my words – the reopening will be one of the biggest economic events in history, unlike anything we’ve ever seen.
Which is why I’m always on the lookout for stocks that the short sellers – who are betting that the stock will drop – have extended themselves on.
If their bet is wrong, it gives us a prime opportunity to position ourselves to profit from the short squeeze.
What does a “short squeeze” look like?
Take a look at Harley-Davidson, Inc. (NYSE:HOG) shares over the last week:
This stock was near the top of my short squeeze list as shares had seen an increase in short selling, crossing into an intermediate-term bullish pattern ahead of earnings.
But then, HOG beat expected earnings estimates, and technical buyers started stockpiling HOG as short sellers scrambled to cover their position.
This resulted in a 20% rally in just five days – that’s the power of a real short squeeze.
But you know who has the power to shoot stocks even higher? Amateur traders with a ton of money – and this new brute-force algorithm can help you claim your share.