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Squeeze-Sweepers were out in full force off the opening bell today .. Day 3 of this sentiment squeeze & call buying was focused on the most heavily shorted & beaten down names .. The 2 names to attracts some of the more aggressive call activity tells the whole story today in TLRY & SDC .. Quality buying was fairly scarce but that’s not all that surprising considering this was the third straight day of big gains .. A few things to keep in mind from this point: short term tactical sentiment is now a bit heated, again not all that surprising considering the rally .. Intermediate term or Positioning sentiment remains favorable, and alongside flow flipping bullish, increases the probability of some stability here .. Now stability is a bit misleading because with a VIX still severely elevated, there still will likely be some viscous selling at times .. The key is that we should look for opportunities out of flow into that selling until bearish positioning gets washed out .. Positive signs that a potential uptrend forming from here should also show up in Sweeper activity.. That’s where we will likely see that quality buying arrive (think of the buying recently in names like HD, MCD, TRIP, etc), especially into any selling or weakness .. So to sum things up, currently we could use a breather or some selling off this recent rally.. The news (noise) over the next couple weeks will likely get worse but there’s a higher probability buyers support prices into weakness .. End of quarter Pension rebalancing, which we’ve mentioned a lot in recent days, should also add to that support for the rest of this month … Let’s see what the flow looks like in coming days/weeks for some clues on whether this is just a bear market bounce or the start of something bigger .. But for now, even if the market wants lower, they gotta wash out a nice chunk of this bearish positioning before doing so, as you can see in this positioning indicator posted below 👇🏻

— SentimentTrader