Hey all just want to give my perspective on the short squeeze for $CLWT today. Premarket it was gapping on no news I could find other than positive China related trade hype. Several others were spiking as well. I, unfortunately, chose the wrong one.
But I was keeping a close eye on $CLWT premarket as I've seen this action before with ultra low float tickers like $TBLT and $YECO.
In the first 30 minutes of premarket, about 250k shares, or 1/3 of the 900k float had traded. The consolidation was just below the previous spike months prior in the 5.05 area. Then some volume came in and it broke through, and more importantly, held the 5.05 area
Then it was momo buying time and ramp to the next b/o level of 5.90 ish. It tested this and pulled back a bit (slightly) and then ramped hard right through it.
Then comes the 52 week high of 8.50ish test and it offered no pullback from the 5.90s.
The 8.50 level was tested several times and was already looking very toppy. It appeared that shorts would start piling in on signs of weakness which did come.
At market open, immediate panic. Then there was some sideways price action followed by lod crack which sucks in a lot of shorts. However, the secondary crack was at a key level of 5.90ish (previous breakout) which held.
Then my theory is shorts started to cover when it failed to panic further. Momo and dip buyers stepped in causing a masssive squeeze toward hod. As it sped up, big volume came in until 8.50 area and then the halt.
Immediately after the halt, the stop popped from 8.50 to 9.50 in a few seconds. Then a secondary halt near 10ish.
I hope this helps. Please please please, do NOT short 1st green day low float stocks. The risk/reward is not worth blowing up your account. Wait for the confirmed backside of the move. Yes, you will miss plays, but like Tim says, trade scared. One play will not make you rich, but one bad trade can cause you to go bankrupt.