The Catalyst Came – And Cashouts Members Rang the Register
Editor’s Note: There’s been a lot of fear-based news sentiment hovering over the markets in recent weeks.
Geopolitical tensions…
The $36 trillion deficit…
Tariff war uncertainty…
As a trader, all this negativity can make you hesitant to put money into the market.
But the truth is…. we’re actually in a healthy bull market right now.
And tomorrow at 2 p.m. ET, legendary investor JC Parets goes live to reveal today’s top buy opportunities that most traders are overlooking.
It’s completely free.
– Ryan Fitzwater, Publisher
If there’s one catalyst I love to watch – it’s a good short squeeze.
And yesterday in Catalyst Cashouts, we saw how a squeeze can lead to a big move.
In this case, the squeeze came on AI group SoundHound (SOUN).
Here’s how I found this winning trade setup…
Back in May, I noticed SOUN had a short float of 32.73%.
For those who don’t know, short floats are known as the percentage of investors betting against the stock by selling it short. That’s the “short” part.
The “float” part refers to the total number of shares that are available for public trading.
Overall, a high short float indicates that a large number of investors are bearish on the stock, anticipating a big price decrease.
But here’s where the buy opportunity comes in…
Short squeeze potential
The great thing about short floats is they can lead to what’s known as “short squeezes,” which happen when the stock price rises unexpectedly and forces short sellers to buy back shares to limit their losses.
This phenomenon drives prices further up and can lead to big gains if you’re positioned properly.
Which is exactly what happened with SOUN on Tuesday.
Tuesday morning, SOUN jumped 17% in premarket before settling at a 14% gain later that day.
The big jump came on a sudden boom of investor interest in so-called “agentic artificial intelligence (AI) solutions.”
If you follow the news, you know artificial intelligence tech is evolving fast – with new happening seemingly by the week.
The latest buzz around agentic AI came after a $3.3 billion acquisition in the Indian market, which triggered many investors to be remember the massive gain potential a company like SoundHound AI.
Boom.
There’s our catalyst.
Not long after this news, I alerted Cashouts members to sell their SOUN shares for a nice gain.
I closed SOUN for a 15.71% gain in 56 trading days.
YOUR ACTION PLAN
Short float plays like we just saw on SOUN are exactly what we look for every week in Catalyst Cashouts. So far this year, we’ve closed 21 winners (that’s 3.5 winners a month on average) for an 88% win rate.
We’re just getting started with AI though.
As future developments could lead to more catalysts in the future, I want to tell you about my colleague Karim’s recent “Unicorn” stock.
This energy company recently partnered with a top AI company, and it’s currently wildly undervalued at its current price.
Click here to discover Karim’s energy/AI “Unicorn” Play.
