Today, we're gon na be talking about the best short setups that i see coming up in 2022.. You know. Listen, it's been a wild amazing run from 2016 all the way up to currently 2022.. I do think it is still very, very, very dangerous to short these low priced low float stocks uh.

Many of you know i mean we talked about it, a lot on the stocks trade advisory, which you could uh, definitely hit that link below and check out the stocks trade advisory. I'm live every day at 8, 30, eastern, but um. You know, and one of the things we look for especially for those momentum trades is those low float plays with news with ridiculous float rotation. You know, that's that multiple of of you know multiplying the freely tradeable shares times the current volume to find that float rotating type play very, very difficult to short, very dangerous to short, so there is a safe way to short, and you know we've seen over the Last couple years, some of these epic, epic uh tech stocks, some runs on some of these things and just have gone higher and higher and higher forever and the bubble's starting to burst.

In the tech stocks and well - and i said when i say bubble starting to burst - i think that's a little hyperbolic. I think just returning to reality a little bit and there's nothing wrong with that. I mean a lot of people. Talk about.

You know kathy wood and a lot of uh the stocks that she's picked. That uh did amazing for a couple years, but a lot of them pulling back and you know again. I don't think that that's a bad thing, it's just. Ultimately, that's how markets work and when we look at some of the multiples that these technology stocks have been trading at i mean it's just ridiculous record levels back to dot com levels.

So you can, you know again and again i'm no doom and gloomer. I'm not saying you know we're going to talk about snowflake today, i'm not saying any of these are going to zero as the shorts like to say, but you can profit from that return back to the mean return back to reality, so um. What we're looking at is basically earnings stocks that are in the technology sector that are breaking below those key levels. So when we talk about key levels, we're looking at areas on the chart - and you can kind of see, let me drop a line for you on snowflake, so that earnings loser last night broke support.

Epic short, so far, today, um and now let me show you what i'm looking at. So when we talk about technical levels, we're looking at those key psychological points that people are gon na, you know either panic or get greedy at remember, short-term trading, particularly uh. You know day trading, these type things we're we're looking at emotional levels, and - and this is a theme again - you hear me talk about on the stocks of trade advisory - a lot where you know i'll often say hey, i don't care what the ticker is. It's just four letters that four letters, though, represent fear or it represents greed, particularly uh greed - is what we're looking at.

You know and again back to that float rotation idea where people are just willing to buy with market orders at any level. That's why you see those three four hundred percent runners so back to snow. We can see where those levels are because look at this basin air, i'm gon na, go back to here in november 2020 notice how stock pulled back hard. I mean pull back hard from 270, all the way back to low of 230 and then kind of based at 240..

Then it went straight vertical. I mean look at these one, two, three, four, five: six, seven, eight nine, like 10 green days in a row, then two red days, but then followed by two monster green days. So we know there's a lot of buying in there. We can see that represented right here as well by the volume, so you know there's a lot of buying.

There stock pulls back hard. Obviously, a lot of selling look at this big volume candle here when it returned to the mean okay. That is no coincidence that you had huge volume on the run-up and huge volume to the exit. Because listen, what do most traders do? Why do most traders fail? They don't take profits on the run up and then they end up selling back at break.

Even you know, and that might be you you know, listen hopefully, if you're coming to the channel. Hopefully i can help you maybe fix that. But simple fact is that a lot of people get greedy, they don't take. Profit stock goes from 2 40 to 4 30.

Basically doubles in the matter of a month and then pulls back hard, no profits, no profits, no profits and they sell it break even okay. So now you can see that u-shaped volume notice how the volume rips into the run rips into the pullback, and you will see that day trading as well. I mean we often see that the the you know the onslaught of buyers and then the onslaught of exit when they pull back so now stock goes into consolidation mode and again this is a lot of technical analysis, uh 101, but i think it's valuable to see So now you've got basing there big pullback here and then a reclaim of that level and more basing so now you know people are emboldened. You know they kind of realize that they think that 240 is the new floor and you can see 240s.

The 4 here 240 is the 4 here 240s. The floor violates that floor, but then reclaims and then grinds higher as well. So now you've got that cycle again of all the greed and look at this uptrend i mean basically uptrended from may to you know, november. Six, six straight months of a solid uptrend, so everybody's emboldened everybody's back to the euphoria.

A lot of you might have seen that there's that chart, that meant goes around in trading circles. You know the euphoria stage and then the panic stage and then the then the hope stage. And then you know when, when there's a little bounce and then the despair stage and and you can see that play out on snow's charts so straight up again, all the way up to that double top level of basically in the 400 420 notice, how the top Holds as well as the bottom holes, okay, then selling repeats. Okay, we go all the way back to 240 and base is there about a month ago base? Is there again earnings hit bad news? Support is broken, and now it's probably all over okay.

Now you would have been quick. Last night after the earnings dropped, okay ernie's dropped right here, massive pullback, but i mean you had there's a five minute chart. If you were prepared, you had time to short that 240 break. If you were prepared and ready or probably the better short, is today waiting for this failed bounce, so let me zoom in whoops.

Let me change my tool here. So if i zoom in you can see, even if you missed that look at this weak bounce, terrible volume ugly, you got to build a bit of a volume spike test that 240 level basically hits it to high a day of 235 fails. That would be your entry today. Stock has been fading all day.

It's under v-app does not look good for snow tomorrow. Okay market's actually been pretty hot today and you know a lot going on as at the time i'm recording a lot of geopolitical news and stuff, but i mean that's just we. We had all kinds of runners. I mean look at look at my gainers.

We had 60 60, 50. 40. 30. 30.

30.. I mean we had earlier. Some of these are pulling back into the end of the day earlier. I think there was 25 stocks up 30 or more today.

So a lot of euphoria and a lot of uh, emotion and here is snow - can't even can't even get back above the whap into the clothes. So, look for those technical levels bust out your charts and i'm telling you there are great if you can recognize and trade against these levels and here's the thing, let's say: snow didn't work. What you would look for is a break back above that 240. Okay, if this stocks, which drop me a comment below where's, where did snow trade the next day, okay, it looks like it's going to trade, probably under view app, probably around 2 15.

Today, i'm curious: where did it trade on march? 4Th would be tomorrow march 5th. Well, tomorrow's friday so it'd be march: 7th, okay, um, but anyway your stop would be a break back above that 240 level, because then, then, that bottom held just like it held here, but look at this move i mean i mean if it mirrors what it did Back in may of last year and and cannot bounce, this thing went as low as 180. I mean that's, you know, depending on where you timed it. 30 40 50 a share and you might say well wait a minute tim.

You know the the channels geared towards penny stocks, you're talking about a 200 stock, but listen. If, if you can make 30 40 50 a share on on these stocks, you don't need huge size. You know, listen small account. You got 10 shares and obviously you're never going to nail the top you're never going to nail the bottom, but if there's that kind of range 10 shares with a small account, 50 shares with a small account and you catch 20.

30. 40. 50. Moves.

There is a ton of opportunity there, so it's another point that i've done other videos on when when these stocks are moving, you know whether it be the tesla's um, yo, the snows or or the facebooks i mean when they're in play, don't be afraid to trade. These higher priced stocks on the long or short short side when the volume is there when the technical levels are broken. I mean again not looking good for snow look at this volume today i mean biggest volume candle in a year and it ain't looking good. So so understand technical analysis.

There's a ton of these high-flying tech stocks, man, the last couple years and uh there's profit to be made on the short side, because again, i'm no chicken little i'm no doom and gloomer snowflake isn't going to five dollars a share, but it might go to 150 Or it might go to 100 and there is opportunity there. So all right, everyone like i said, check out the stocks of trade advisory. I'm live every day, 8 30 eastern. The link will be below and uh would love to see you on there.