"The Setup That Has Shorts Sweating" Nate Bear, Lead Technical Tactician, Monument Traders Alliance Hey Gang, While the market grapples with Fed decisions and geopolitical tensions, I've been laser-focused on what actually generates profits: earnings winners that consistently deliver. Advanced Auto Parts (AAP) has been an absolute goldmine lately. First, we caught the explosive Opening Bell Aftershock on May 22nd, which Delivered a 334% Return in Minutes! Then, just yesterday, we locked in another beautiful winner as you can see from my trade alert: That's two solid wins from the same stock in just over a month. But here's what has me excited right now... AAP is setting up for what could be our biggest win yet. The daily chart is showing a textbook pattern that I absolutely love to trade, and the timing couldn't be more perfect. Let me show you exactly what I'm seeing and why this could be our next triple-digit winner. Why AAP Is Primed for Eye-Popping Gains What makes AAP particularly compelling right now isn't just the technical setup I'm seeing – it's the fundamental conditions that could turn this into a dynamite short squeeze. Here's the key detail most traders are missing: AAP currently has a short float of nearly 20%. That's a massive number, and here's why it matters so much... When a stock has high short interest like this, it means that one out of every five shares available for trading has been borrowed and sold by traders betting the stock will fall. These short sellers are essentially sitting on a ticking time bomb. Think of it like this: if AAP starts surging, those short sellers don't have a choice. They MUST buy shares to cover their positions, regardless of the price. This forced buying creates a feedback loop that can send the stock absolutely parabolic. We've seen this play out time and time again (Ala Gamestop). The Technical Setup That Has Me Excited Now, let's examine what the chart is telling us, because this is where things get really interesting. Take a look at AAP's daily chart: This is exactly the kind of setup that gets my blood pumping. Here's what I'm seeing: Perfect TPS Formation: We have all three elements of my proven TPS strategy aligning beautifully: - Strong Upward Trend – AAP has been in a clear uptrend since its earnings announcement, making higher highs and higher lows consistently.
- Tight Consolidation Pattern – Instead of giving back its gains after the initial surge, the stock has been consolidating in a tight range near the highs. This shows me that buyers are in control and sellers aren't rushing for the exits.
- Squeeze Forming – My proprietary squeeze indicator is showing compression at the bottom of the chart. When this fires, it typically signals an big move in the direction of the trend.
Stacked Moving Averages: Notice how the moving averages are perfectly aligned in bullish formation. The shorter-term averages are sitting cleanly above the longer-term ones, creating multiple layers of support underneath the current price action. Volume Confirmation: The recent buying has been accompanied by above-average volume, which tells me institutions are accumulating shares ahead of what could be a major breakout. When you combine this technical setup with that 20% short float, you have all the ingredients for a move that could deliver 100%, 200%, or even 300% gains as shorts scramble to cover their positions. The best part? We're getting in early, before the mainstream financial media catches on to what's happening here. | 
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