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HTGM – Momentum Scalp

CATALYST
short squeeze sympathy - HTGM is making new highs on the open with volume expansion after gapping up 5% in premarket. Small short squeezes have been in play this week due to the old MEME stocks showing some strength.

TRADE IDEA
ULTRA SHORT-TERM SCALP
HTGM could put a large and short-lived move in on the open. This is not a trade to hold. Only looking to hold for a few minutes tops, with a loose max target in mind of $7.25 (next major technical resistance)

SETUP QUALITY AND VARIABLES
“B”
• Sympathy short squeeze with MEME stocks
• Ultra-low float - 690k
• Clean Daily chart
• Elevated RVOL

PLAN
• Get long at break of 5.75 (immediate resistance), no add, stop is break below entry candle.
• Sell at 1st sign of weakness after 1st massive volume expansion, looking for 1M shares to print on the 1min chart

REASONS TO SELL
• Stopped out
• Tape slows after some weak shorts capitulate and FOMO bulls try to chase

EXECUTIONS AND PRICE ACTION
• On open, HOD scanner kept lighting up, which was my first look at the stock. Saw the float and short interest and knew this had a little potential. Saw that we were testing 5.75 and next resistance was around 8.
• Followed plan
• Got long when HOD at 5.90 was broken
• Sold when volume expanded and tape started to slow. Thought we would have seen 1M print, but it looked like it was getting weak, so got out.

KEY TAKEAWAYS
• Without my HOD scanner I would have missed this trade, good use of technology
• Nice tight stop, managed risk well
• Followed plan, took profit quickly
• Price moved to target, but only after putting in largest red volume bar of the day. It would not have made sense to keep holding this