Friday afternoons are particularly volatile.
Shorts get nervous about holding over the weekend so they buy-to-cover and get out.
And there are a lot of short sellers in the market right now … Bed Bath & Beyond (NASDAQ: BBBY) is proof of that. It spiked +340% this week on a huge squeeze after releasing bankruptcy news.
And there’s another catalyst driving shorts out of their positions … Monday is Martin Luther King Jr. Day in the U.S. and markets will be closed.
That means tickers have an extra day to wind up and spike on Tuesday morning.
If you’re short-selling, think twice before you hold over the weekend.
If you’re looking to capitalize on this bullish momentum …
We found a good video that breaks down a solid Friday trade strategy and it even mentions a pattern for Tuesday morning.