Market Condition: Weak

Commentary: Yesterday was a weak bounce so far. More information will be available today on the gap down if we recover or if we accelerate downward. Personally I'd prefer the flush to be as sharp as possible at this point rather than dragging it out. But we don't always get what we want!

We can see that despite the Index bounce yesterday that individual names on a whole dropped in terms of breadth. The market bounce hasn’t really occurred yet. If we get another sharp drop this week then we are lining up for a strong counter rip higher. This is bear market/correction type action. Expect volatility and keep the duration of your trades very short. Very little will trend.

If you’re not experienced it’s best to just spend this time studying rather than using energy trying to navigate this.

Supernova · Supernova · Mkt cap $581.0M · Float 340M · SI 36.2% (10.6 days) · Nasdaq · Theme: Rental & Leasing Services · Next earnings 5 Nov

Why: HTZ is on squeeze watch today. Very high short interest and has a MEME vibe to it. The PR Headline is much to do about nothing but the pre market action is suggesting there may be life in it.

Worth noting that these Squeezes tend to occur later in the day. Not at the open. So be patient and see how it acts. A lot of the time you will see tight consolidation for a few hours before a sudden spike.

This could easily just dump at the open so watch and wait is the best course of action. If it does go it has the ability to make a silly move.

Level: Above $2.30 is where it begins to squeeze in my opinion.

PR Catalyst · Magnitude · Mkt cap $402.7M · Float 88M · SI 9.6% (4.3 days) · Nasdaq · Theme: Medical - Diagnostics & Research · Next earnings 4 Nov

Why: Selling a section of their business for over $200m. About half the current market cap. Company left with a still working business. Not a shell company. Meaningful short interest.

Not huge conviction but pre market is strong. Could be a good one day wonder. This transaction clears the debt on the company and leaves them with cash.

Level: $5

N/A

MRNA - Power Play - 17th September 2026 - 49% Remaining
CLF - Earnings Catalyst - 19th October 2026 - 100% Remaining

Tuesday October 20 2026

8:30 AM - Building Permits (Sep) (Previous: 1.4 M, Consensus: 1.39 M)

8:30 AM - Housing Starts (Sep) (Previous: 1.29 M, Consensus: 1.3 M)

8:30 AM - Housing Starts MoM (Sep) (Previous: -5.9%, Consensus: 1.9%)

8:30 AM - Building Permits MoM (Sep) (Previous: -2.1%, Consensus: -0.7%)

10:00 AM - Pending Home Sales YoY (Sep) (Previous: -4.7%, Consensus: 1%)

10:00 AM - Pending Home Sales MoM (Sep) (Previous: 0.3%, Consensus: -0.5%)

4:30 PM - API Crude Oil Stock Change (Oct/16) (Previous: -11.1 M, Consensus: -1.3 M)

N/A

XBI -6.2% on the week and -8.8% on the month, under its 50-day. The sector tailwind is gone for now. Reactions have to prove themselves.

Note: Never front-run biotech catalysts. Wait for the catalyst to hit, then assess if the reaction is tradable. Dates are estimates and can shift.

Full H2 Biotech Watchlist: TradingView

Have a Great Week!

Sean Sharpe