A Freshly Squeezed Biotech

We recently published a report titled "Biotech is the Next Big Squeeze," and the timing couldn't have been better.

Last week, the S&P Biotech ETF $XBI rallied over 6% to close at a fresh year-to-date high. In the post mentioned above, we highlighted that the short interest in XBI is at the highest level since 2020.

Now, that mispositioning is being unwound in the broadest biotech short squeeze we've seen in years.

We’re already seeing the first cracks in the dam. Double-digit moves are hitting across our watchlists, short sellers are scrambling, and the same “dead money” names Wall Street buried for years are suddenly ripping higher.

This is precisely what happens when too many traders lean the wrong way for too long. One spark sets it off, and the squeeze feeds on itself.

Which stocks will deliver the monster moves as this unwind accelerates?

That’s where our Freshly Squeezed framework comes in. We have three tables: one sorted by 10-day change (what's squeezing right now), short interest, and days-to-cover (what's vulnerable to a squeeze).

Here's what's squeezing right now:

At the top of our leaderboard are names like EchoStar $SATS, Mineralys Therapeutics $MLYS, and Opendoor Technologies $OPEN. These are the kinds of stocks that are Freshly Squeezed.

We also have lists that are filtered by short interest and days-to-cover, which highlight the names that are vulnerable to a short squeeze.

Our focus remains on the biotechnology names on our lists, as we believe the conditions are ripe for a historic squeeze in the industry. 

This week, we have laid out another one of our highest-conviction trade ideas for ASC Premium members. If you want the exact levels we’re watching and the upside targets we’re trading toward, you can unlock them all here.

ASC Premium members can see the setup below 👇