MYnd Analytics Inc (NASDAQ: MYND) is a stock that’s making shorts very nervous today, and for good reason. The stock is popping, currently trading with gains of more than 20%. Digging into the SEC and Yahoo! Finance, it quickly becomes clear that this run seems to be happening for no reason. Trust me, there’s a reason. Today, we’ll talk about:
- Why MYND is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s What’s Happening With MYND
MYnd Analytics is flying this morning, but if you’re reading this story, chances are that you already know that. The real question here is why? What’s happening that’s making the stock run for the top? Well, if you look for SEC filings and press releases, you’ll likely be disappointed. There’s none of that out there. The reason for today’s gains are purely technical.
The truth is that MYND hasn’t had the best of times in the market as of late. In fact, the stock has been on the down trend and seeing some serious growth in short interest. Over the past couple of days, MYND has had a seriously low float, and perhaps more importantly, the stock closed at $1.37 per share on both days. That is a penny below the previously established $1.38 support level that the stock has been experiencing for about a month.
In some cases, when a stock’s value breaks through support, it can lead to a bearish run. In others, it leads to some serious bullish movement. With the stock reaching a new level of support, traders started to push the stock upward, looking for an opportunity to make a quick buck. At the same time, the market has been trading in the red for multiple sessions and many were looking for something to believe in.
With MYnd Analytics headed up, traders found what they were looking for, hopping on the bandwagon. Soon, shorts started to get worried. After all, shorts lose money when values move up. With a high level of short interest due to recent activity, shorts started to abandon ship. So, what we’re seeing here is nothing more than a short squeeze!
What We’re Seeing From The Stock
Short squeezes are a fun phenomena to track in the market because they can lead to serious gains. Sometimes, stocks may even run to gains in multiples. With the short squeeze active on MYnd Analytics, the stock is making a serious run for the top in the market this morning. At the moment (10:18), MYND is trading at $1.71 per share after a gain of $0.34 per share or 24.82% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MYND. In particular, we’re interested in following the story surrounding the short squeeze closely to see just how much pain the bulls lay onto the bears. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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