Hey Gang,

The indexes just hit dangerous territory.

We pushed to new all-time highs, but here’s what everyone’s missing – SPY reached plus three and a half ATR. That’s rare air, gang. When indexes get that extended, there’s limited upside ahead.

Most traders are still chasing momentum. Big mistake.

I’m doing the exact opposite. While others chase extended names like UPST (one of my favorites), I’m hunting for setups that aren’t stretched. Names with beautiful patterns that everyone’s ignoring.

But there’s one setup that has me really excited…

SoundHound AI (SOUN) – and the numbers are wild.

This $11 stock has a 35% short float. That’s massive. When shorts get squeezed with numbers like that, things get ugly fast for the wrong side.

(Click to enlarge)

Here’s what I’m seeing: Weekly squeeze firing, daily squeeze already triggered long, and if we break over $12, there’s clear room to $15. From there?

The chart just opens up.

The timing couldn’t be better.

Earnings hit on 8/7, giving us the perfect setup window. I’m looking at the 8/15 $15 calls – yeah, I’m going aggressive on this one because the short squeeze potential is too good to ignore.

Click the image below to watch my full breakdown.

YOUR ACTION PLAN

My colleague Bryan already booked a fast winner on this name in his Catalyst Cash-Outs Live weekly service. Always good to have another Pro Trader confirm your setup – and Bryan knows his stuff!

Here’s My Plan: Entry under $12, target $15+, stop under $10.

I’ve already started building a small position myself. With the indexes needing to consolidate and smart money rotating into setups like this, SOUN checks every box I want to see.

But here’s the thing about short squeezes – the setup window is everything. Miss the entry, and you’re chasing.

Want to learn how to trade earnings winners for potential triple-digit returns in just minutes?

Then you need to check out this strategy.