Key Takeaways from $SOLY's Major Short Squeeze (+Free Video)

by | May 28, 2019

Today was an incredible day in the Investors Underground community. This is 100% WHY we stay familiar with charts, flip through them nightly and keep recent movers fresh in our minds. We've just come off an intense three or four month stretch of IPO after IPO literally opening up double vs. pricing and then doubling again. We've seen TIGR gain momentum and squeeze shorts, we've seen PINS come out swinging and BYND still pressing near highs. Then, there was SOLY which was one of the thinnest of the bunch, traded exceptionally well and then the day after they presented some data over the weekend bids were gone, sellers arrived and a negative article came out setting the trap in a major way.

The Thought Process on the Trade

Here were early thoughts on chart potential (hit $22.25)

Why do I care?

Trading is all about the audience right? Sometimes if the audience is too big on one side, it can set up for a disaster. In this case, shorts were totally trapped. Pleaded their case all day while this didn't matter meanwhile they just got ran over. Sometimes people forget just how thin names are. People forget that a name with 10 million volume rather quickly is not something to fight or think that news or more importantly reality even matters. This is where the "Trader the Ticker not the company" came from. It doesn't mean fundamentals don't matter, it doesn't mean you shouldn't know what you're trading, what it means is -- all those folks who spent all day bashing on Twitter that the 510(k) was BS, nonsense and didn't matter ignored the price action, ignored what the name was telling us and thus got ran over betting against the name. Yes, eventually truth and reality will matter but on the front side, trade the ticker ie: the price action and most important respect the volume!!

Here's the early thoughts as soon as it checked all the boxes for this sort of trade (remember the video we talked about categorizing trades on YouTube?)

So, here are my trades on it:

SOLY Trade Recap Video

Here's a video recap comparing it to recent discussions we've had and most importantly why I am happy with my exits where I did, because we can't always see the right side of the chart right? We have to use the left to predict the right, and once the RIGHT side proves we can then make additional decisions.

SOLY Alerts and Commentary from the Chat Room

09:45:09 am @TradeHawk - $SOLY Soliton gets FDA 510(k) approval for its Acoustic Wave Device for Dermal Tattoo Clearing
09:46:03 am InvestorsLive: SOLY off TradeHawk
09:46:09 am InvestorsLive: FDA 510K approval
09:46:14 am InvestorsLive: been super beat
09:46:29 am InvestorsLive: SOLY perfect
09:46:35 am InvestorsLive: SOLY into circuit
09:52:45 am InvestorsLive: SOLY indication pretty nice so far may be a nice gap up
09:56:23 am InvestorsLive: SOLY 7.40 indication sick alert so far
09:56:35 am InvestorsLive: cautious if not in from the alert but - super nice opp
10:01:02 am InvestorsLive: 8.84 indication so far SOLY
10:02:23 am InvestorsLive: done SOLY b/c newsletter there
10:19:56 am InvestorsLive: SOLY PR out
10:26:47 am InvestorsLive: Newsletter almost sent this SOLY into circuit down on exit

10:55:24 am InvestorsLive: SOLY couple things to consider - came down from $13 on no vol + hit piece and this is highest volume day ever
10:55:28 am InvestorsLive: this could be nuts later
10:56:17 am InvestorsLive: will be trading accordingly
10:58:10 am InvestorsLive: SOLY πŸ™‚
11:02:42 am InvestorsLive: 99% focus right now on SOLY
11:04:29 am Swifttrader01: Nice call / analysis nate on SOLY
11:05:09 am InvestorsLive: :up
11:05:11 am InvestorsLive: huge
11:05:13 am InvestorsLive: locking along way
11:25:01 am InvestorsLive: F*ck newsletter is talking about scalping this SOLY
11:25:09 am InvestorsLive: get off my trade bro
11:25:31 am InvestorsLive: SOLY into circuit attempt
11:47:41 am InvestorsLive: $13 SOLY llol
11:56:50 am InvestorsLive: SOLY re visiting later still super early
11:57:15 am InvestorsLive: opinion hasn't really changed but I know my weakness
11:57:22 am InvestorsLive: and that = over stay when I am sized
11:59:00 am InvestorsLive: someone seriously bent SOLY but just feels like they need to re trap - its surprising b/c its actually relatively hard to borrow
11:59:15 am InvestorsLive: ideally 1-2 hour consolidation and dip a bit trap a bit then have an opportunity later, congrats to those who took trade. very clean.
12:03:51 pm InvestorsLive: SOLY not coming off radar - focus for later 100%
12:03:55 pm InvestorsLive: same game plan as spelled out
12:04:00 pm InvestorsLive: here to help in lounge
12:11:53 pm InvestorsLive: SOLY some covers prob
12:12:20 pm InvestorsLive: trading it as well just scalps tho was trying to be patient with the $9s avg but that didn't last too long ha
12:13:34 pm InvestorsLive: 11.60-11.80 goal sub lull for me
12:32:23 pm InvestorsLive: Shorts are so trapped SOLY
12:48:46 pm InvestorsLive: SOLY filtering a lot of folks out here but not dying
12:48:57 pm InvestorsLive: this is the area where you learn what it wants for later
12:51:55 pm InvestorsLive: SOLY they couldn't crack it
01:10:43 pm InvestorsLive: SOLY good reads
01:21:30 pm InvestorsLive: my thought process is everyone plays for squeeze into close SOLY and they'll be early and I think they dunk the chasers controlled into close - not a full dunk just controlled yank. Then in coming days when most lose off radar I think we'll have the real action. Just my two cents still trading it off wash outs and selling rips but just thinking out loud.
01:22:21 pm InvestorsLive: was there 1230-1260s and offering out 1320-1350s etc around core until picks a trend
01:22:51 pm InvestorsLive: mmhmmm
01:22:57 pm InvestorsLive: they listenin'
01:23:51 pm InvestorsLive: hope commentary helped
02:20:51 pm InvestorsLive: SOLY some swipes
02:21:34 pm InvestorsLive: imo past hour has all been trapping SOLY my thought process remains same tho
02:26:56 pm InvestorsLive: 12:13:34 pm InvestorsLive: 11.60-11.80 goal sub lull for me
02:27:04 pm InvestorsLive: re: SOLY and fast swipe back so nearly buck padding
02:51:59 pm Amp: SOLY shew
02:52:06 pm InvestorsLive: Just food for thought (LFIN chart)
02:52:15 pm TWB52: SOLY moly!
03:06:49 pm InvestorsLive: again if you think back even OTLK most recent - but BPTH etc the stuff that really went was kinda weak and let shorts "win" into close and by win I mean didn't squeeze out into close but just sorta flattish slow fade but stayed in trend
04:05:10 pm Mcawiley: SOLY through 15
04:05:31 pm t3p0: Thanks Nate, great calls all day
04:05:39 pm InvestorsLive: SOLY nothing to see here


  1. Last two review videos, especially, have been just superb - thank you!

    • Awesome stuff Nate thx

  2. Thanks Nate

  3. Thank you. This blog is amazing.

  4. Awesome stuff. Thanks


Submit a Comment

Your email address will not be published.

Related Content

Adapting to the Market - 8 Practical Tips for Traders

Adapting to the Market - 8 Practical Tips for Traders

The stock market is constantly changing. If you are fortunate enough to find success as a trader, you shouldn't get too comfortable. A strategy that works for days, weeks, or months is not guaranteed to work forever. Career traders who achieve long-term success...

14 Tips to Improve Your Trading Mindset

14 Tips to Improve Your Trading Mindset

Your mindset is an important part of your trading. How you think will impact how you trade. Your mindset will ultimately determine what you focus on, how well you learn, how you react to trades, and so on. Today, we are going to discuss some quick tips to help you...

The Process Behind Trading Success - Nate Michaud on SimCast

The Process Behind Trading Success - Nate Michaud on SimCast Topics Discussed Long Trading vs. Short Trading (and Where Nate Makes More Money) Using a "Macro Mentality" in Trading Scaling in and Out Around a Core Being Early vs. Being Right Why Day Trade vs. Invest? Finding The Best...

Trading Mindset: Setting Yourself Up for Success (Interview)

Trading Mindset: Setting Yourself Up for Success (Interview) Topics Discussed Focusing on Two Stocks Every Morning (Quality Over Quantity) Taking a Starter Position to "Get a Feel" for a Trade Scaling Into Trades Minimizing Losers and Maximizing Winners How to Plan Better Entries The...

Trading Insights from Career Traders - Interview With Nate and Cody

Trading Insights from Career Traders - Interview With Nate and Cody

Topics Discussed How Veteran Traders Manage and Deal With Losses The Role of Discipline in Trading and Life When to Trade & When to Take Breaks Adapting to Changing Market Trends (Figuring Out What Works) Recognizing Your Strengths and Weaknesses What Contributes...

13 Tips to Minimize and Prevent Trading Losses

13 Tips to Minimize and Prevent Trading Losses

How much higher would your trading profits be if your losses were cut in half? How much higher would they be if you only lost half as frequently? Most traders focus on chasing profits and forget that minimizing losses can have the same net impact on your bottom line....