Camber Energy (CEI) Stock Is Flying – Will It Continue?

Camber Energy Inc (NYSEAMERICAN: CEI) is screaming for the top in the premarket hours this morning, following up on the strong gains seen out of the stock yesterday. However, if you’re looking for news or press pointing to a catalyst for the run, you’re not going to find much. There haven’t been any press releases or SEC filings issued by the company. 

So, what’s the deal?

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Retail Investors Pile Into CEI Stock

Although there’s not much by way of news surrounding the stock, these days, there doesn’t need to be. Since the beginning of the year, retail investors have been flexing their muscles, pushing hedge funds out of short positions with short squeezes. 

That seems to be exactly what’s happening today. 

Recently, there’s been quite a bit of social volume surrounding Camber Energy with many of the messages relating to the potential for a short squeeze. As we’ve seen throughout the year, when the retail community bands behind a ticker saying a short squeeze is on the way, their predictions become self-fulfilling prophecies, driven by the strong volume created by the excitement surrounding the potential squeeze. 

Yesterday, the squeeze began as renewed retail investor confidence sparked up, leading to abnormally high volume with far more on the buy side then sell side. 

This morning, things seem to be headed in the same direction with the stock tracking nearly 10% gains in the premarket hours. 

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Final Thoughts

All told, there’s quite a bit to be excited about when a short squeeze takes place. Few other events have the potential to send a stock screaming as high as a squeeze often does, making getting involved an enthralling process. 

However, if you’re a newcomer to the stock market, it may be best to steer clear. 

The fact of the matter is that short squeezes both start, and end, fast. If you catch the squeeze at the peak, when the declines at the end of the squeeze begin to take place, chances are that you’ll realize significant losses. So, without experience, it’s best to avoid these types of moves. 

Nonetheless, those with experience know that squeezes can lead to gains in multiples, and while CEI’s gains, both yesterday and in the premarket this morning, are exciting, they haven’t tipped the scales quite yet. So, there may be plenty more room to run. 

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