Short Squeeze Scanner

Identify explosive short squeeze opportunities using the BNAI pattern (581% gain, January 2026).

The BNAI Formula

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Technical Setup → "Pulling Away" Pattern → Catalyst → Volume Surge → Short Covering → Parabolic Spike → Pre-Market Capitulation

Required conditions (ALL must be present):

•Short float >20% AND increasing
•Borrow fees >100%
•Market cap $50M-$1B
•Low float (<10M shares, ideal <5M like BNAI's 2.4M)
•Tier 1 catalyst with SEC filing
•Volume surge >3x average
•Prior liquidity established (high volume in preceding sessions)

Workflow

1. Screen Candidates

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Short % Float: >= 20%
Short Interest Change (30 days): >= +50%
Borrow Fee Rate: >= 100%
Market Cap: $50M to $1B
Float: < 10M shares (ideal < 5M)
Average Volume (20-day): >= 500K
Prior Volume: 100M+ shares in recent sessions (liquidity)
Price: $1 to $50
Near 200-day MA: Ready for breakout trigger

Data Sources: Fintel Short Squeeze Leaderboard, ORTEX, Benzinga Pro Scanner, FinViz

2. Watch for "Pulling Away" Pattern

Intraday sequence before explosion:

•Consolidation - Stock trades sideways, looks "boring" during regular hours
•Power Hour Perk (3-4 PM ET) - Price starts perking up, volume increasing
•Moving Average Breakout - Pulls away from MAs, especially 200-day
•After-Hours Catalyst - News drops, shorts trapped
•Pre-Market Capitulation (4 AM ET next day) - Final short surrender, especially powerful on Mondays

3. Validate Catalyst

Tier 1 (Enter): Government contracts with dollar amounts, partnerships with named entities and revenue terms, FDA approvals, earnings beats + guidance raises

Tier 2 (Consider): Insider buying >$100K, analyst upgrades, product launches with pre-orders

Tier 3 (Avoid): "In discussions" announcements, non-binding LOIs, unnamed partner claims, generic "AI/blockchain" mentions

Validation:

•SEC filing exists (8-K, S-1)
•Dollar amounts specified (not "potential")
•Partner/customer verifiable
•Immediate impact (not "expected in 18 months")

4. Identify Squeeze Stage

Stage	Price Move	Signal	Action
Early	+20-50%	Short interest >15%, catalyst 0-24h old	ENTER
Mid	+50-150%	Volume sustained, media starting	SCALE PROFITS
Late	+150%+	Volume declining, FOMO phase	EXIT
Parabolic	+200%+	Breaking $70+ like BNAI, shorts capitulating	SELL INTO STRENGTH
Post	Consolidating	Volume dried up	STAY OUT

5. Execute Entry

•Maximum 5% per position, 10-15% total in squeeze plays
•Enter within 1-4 hours of Tier 1 catalyst OR on first pullback
•Watch for 4 AM pre-market continuation (especially Mondays)

6. Execute Exit

Target	Action
+50%	Sell 1/3 (recover capital)
+100%	Sell 1/3 (lock profit)
+200%	Sell remaining

Stop Loss: -15% to -20%, trailing 20-25% after +50% gain

Exit Immediately: Catalyst proven false, dilution announced, halt >1 hour, volume <50% average on down day

Red Flags (Do Not Enter)

Reverse split history, management fraud allegations, no SEC filing for catalyst, unprofessional website, no unusual options activity

Core Principles

•NEVER enter without a catalyst - High short interest alone is insufficient
•ALWAYS take profits systematically - Greed destroys gains
•RESPECT the stop loss - Small losses acceptable, large losses are not

Claude's Role When Using This Skill

Do:

•Monitor multiple data sources for squeeze setups
•Parse SEC filings for material catalysts
•Rate catalyst quality (Tier 1/2/3)
•Validate partner/customer entities
•Calculate position sizes per rules
•Remind of exit targets when emotions run high
•Alert when red flags appear

Cannot:

•Guarantee any stock will squeeze
•Predict exact price movements
•Time entries/exits perfectly
•Access insider information

References

Load as needed:

•pattern-analysis.md - Complete BNAI case study, technical metrics, catalyst framework
•squeeze-mechanics.md - Covering cascade, entry/exit strategies, psychological discipline
•tools-sources.md - Platform configurations, scanner settings, daily workflow

Short squeeze trading carries substantial risk. Never invest more than you can afford to lose completely.