Rocket Companies $RKT is in the process of completing a primary trend reversal as it breaks out to its highest level since 2021 on the heels of an earnings beat.

The stock holds a 13.6% short interest and a 6x days-to-cover ratio, which could spark a major squeeze.

As long as we’re above 15, we want to be long RKT.

With the primary trend just now turning higher with the completion of a textbook rounding bottom formation, we like this one over longer time frames too.

Here’s the chart, showing volatility surging higher as it comes off record low levels:

I had no plans to put a new trade on today. 

In fact, with all the selling in big tech, i thought it would be a good day to leave the office a bit early, get outside, and let the dust settle. Come back next week fresh.

But, here I am writing… because this setup is just too good to miss.

We had an unusual options splash come across our scan just earlier in Cinemark Holdings $CNK.

We know the name well as we’ve been stalking this one for a Freshly Squeezed setup. 

Cinemark Holdings has a 25% short interest and 10x days to cover ratio. 

While the unusual options activity and high short interest are great, what is even more bullish is the fact CNK is in the process of completing a textbook bearish-to-bullish reversal.

Here’s what that looks like:

Zoom In. Zoom Out. Let’s Ride.

When you zoom in on the chart of Zoom Video $ZM you will see an intraday range that is engulfing the prior 7 trading days. Unless a lot changes in the next few hours, it should also be green with a large body. 

When you zoom out, you’ll notice this couldn’t be taking place at a more critical price level. Just look at all the old lows around 60. That’s a lot of dead bodies. 

GE just beat earnings and is trading up slightly in the pre-market. When trading opens today, we expect volatility to come in a lot with this quarter's report now in the rear-view.