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Yesterday, we saw notable moves for several stocks, some that we have mentioned recently.

Grom Social Enterprises (NASDAQ:GROM) saw a daily range of $1.73 to a high of $6.73, closing the day at $3.42. Paltalk, Inc (NASDAQ:PALT) moved from $5.34 to a high of $15.20, closing the day at $8.39. PALT is doing well in pre market and is currently up 30% from close. Why did these two stocks move?

Sympathies

Both of the above mentioned companies are involved with the social media sector, as is DatChat. DatChat has been a good run the past few days, gaining 146% since we mentioned it as a buy. Both PALT and GROM have a market cap of around 25% that of DATS. With DATS moving so well, traders often turn to smaller companies in similar sectors to look for moves before they happen. As they had a very small market cap, only a small amount of volume can see these stocks move.

Social media stocks will be on watch for us in the next few days as the move looks set to continue. We believe $12 should hold for DATS before another leg up. Volume yesterday was almost double the previous days. The demand is increasing.

CEI

Camber Energy (CEI) was another stock that moved well yesterday. They were up 50% on the day and 270% since we looked into the company and decided it had potential for a big move. We had $5 as a first target, with the stock hitting $4.85 yesterday.

The price dropped suddenly from $4.85 to a low of the day at $2.89. There was resistance at this price and it looks as though short sellers were targeting this. The stock down-halted twice after this. We don’t believe anything has changed in the thesis for this stock and sector. Oil is rising still and carbon capture is a growing theme among the news. With more shorts in the stock, a move to a new high would see a lot of covering and a significant move. The share price bounced nicely from the low and lots of buying volume was seen. The price is currently up 20% in pre market, at $4.15.

SSR

Both DatChat and Camber Energy are on short sale restriction (SSR) which means short sellers can only short the asking price and not set orders at specific price levels. We believe DATS and CEI could see a nice recovery today and we will be watching the sympathy companies PALT and GROM.

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