The Risk of Oversold Stocks

When you see things that are overbought, it generally lowers. It's like short bait, okay? They're throwing some in the water for shorts to nibble on. And so they'll short real high. That's what happened with a lot of stocks like Tesla who just were gamma squeezed higher and the shorts gave up and moved on. On the other hand, if I see a stock that has a lot of shorts in it, I look at those people as future buyers. So that's the risk. If we break the recent low, now that will basically puncture all the people that bought recently the lows hoping that we were going to move right back to old highs or something