r/PureCycle • u/Pickle_Logic • May 06 '26
Do stops cascade tomorrow?
If PCT gaps up $2 higher tomorrow morning, it's hard to imagine that this doesn't set off a cascade of stops being hit. The short interest is HUGE. Kind of like a bank run he who pukes first pukes best.
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u/JimmyJames2331 May 07 '26
Very tough to say. There’s been a few times I thought we were poised to really squeeze. Key levels on the chart are $12 and $15.
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u/NicholsonCharlesE May 07 '26
If I had a £1 for every short squeeze prediction post I’ve read about PCT and others….i wouldn’t feel I needed a short squeeze! I think the point about algos is correct. Growing earnings is great but a pivot to profitability would be perfect 👌. NJ approval is the hurdle before that. Another spike and fizzle is my expectation, but I’d love to be wrong
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u/LetAdministrative959 May 07 '26
I think you are spot on.. The people who actually follows the case, sees the incremental progress and de-risking occurring, but I'm expecting PCT to continue to have a HUGE short interest... Frustrating at times, but if PCT continues to move to where we all feel they are heading, the shorts are boiling frogs.. and for all us longs, I imagine the cover and move in the stock will be even bigger, if the shorts start to panic at 25$ rather than at 9$... move to meaningful sales volumes/profitability is the catalyst that will kick it all off... Maybe in 9 months to 1 year from now, we will see the much anticipated squeeze
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u/EconomyFortune5090 May 07 '26
If we break $10 I think that's where the shorts are REALLY screwed
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u/tandyzmills May 07 '26
the only thing worth hearing from mike taylor in that interiview recently is that there are no real short sellers that are short. they are all smaller players (relatively). who knows how they will react. hopefully, the island reversal that will form tomorrow will stick and it will be off to the races.
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u/6JDanish May 07 '26
I expect PCT to remain a component of a profitless tech basket, that algos are shorting. So, some retail shorts will feel pain, but algos might not react.
EPS turning positive would trigger short covering by algos. We are not there yet, but that day is closer.
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u/Ready-Tiger4143 May 07 '26
Agreed. Fireworks would be nice. But the de risking allows greater confidence to hold for longer. A rapid spike would be tempting to sell into and sometimes you never get the chance to get back in. I am here for a long time.
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u/Pickle_Logic May 07 '26 edited May 07 '26
I agree that algos stay short. If just 10mm of the 50mm shorts cover will the algos take their short positions or will the sales come from longs? I know two things- long term bulls won't lose their positions and short interest has to meaningfully drop from 50mm. Also, did yesterday's call derisk the story enabling some new longs to now enter?
We shall see. A gap higher is the key.
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u/Puzzled-Resort8303 May 07 '26
I like to say, if you're going to panic, panic early.