In honour (sic) of the impending meltup, this morning I’m looking for stocks that are hovering near their 20 day SMA, and have greater than 15% of available shares sold short.  After some analysis and deliberation, I will be watching the following stocks today to try and catch some squeeze action:

$KBH

$X

Options are my instrument of choice here.  With $KBH, I’m eying the January 14 calls.  $X, the January 21 calls.  Both of these stocks offer well defined support levels, so any hint of weakness around those points, I’ll bail on them.

You can follow me on twitter, to see if/when I pull the trigger on these (in addition to being subjected to my limitless wit….).

My best to you all.

-EM

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