Playing the Short Squeeze
Often times when a stock has a giant short position there is something wrong with the company. For the most part, professional short sellers are very intelligent and are extraordinarily detailed in their reasoning behind their downside bets. In downward trending markets, I like to sell short stocks with a large percentage of shares sold short— for the “pile on” effect. Typically, those stocks are easy to break, because people think something is wrong with them. It’s all about perception.
However, in upward trending markets, the sharp edge of the pendulum swings the other way, into the scrotums of the steadfast/stubborn short sellers. Hence, when the markets are shooting higher, I like to go long stocks with large short positions.
Reason being: short sellers can only take so much pain, before they are forced to capitulate and buy back shares, sending said names through the fucking roof. Anyone familiar with Resorts International? Look it up, pal.
Wall Street is littered with legendary short squeeze stories. Why not try to participate in one, while the market is pistol hot?
The following stocks represent the best short squeeze ideas, courtesy of The PPT:
GDP, CSTR, NFLX, JCG, SD, ADVS, AIPC, AKAM, AMED, NILE, SHS, CBL, DSW, SYNA, EQIX, SHLD, ATPG, TNDM, NTRI, GMCR, PCX, CENX, ARD, VPRT, CYBS and MAC.
NOTE: Most of the stocks mentioned above have short positions representing more than 20% of the shares in the float.
NOTE II: In case you didn’t know, iBankcoin launched its second premium service, based upon the work of Mr. Woodshedder, kind venerable gentleman of the south. I insist that you sign up for the free trial (only email address is required). Worst case scenario, you get to bear witness to iBankCoin’s supremacy, when it comes to premium financial products—here on these retarded internets.
The Fly is God.
Fly,
Just curious.
Is it possible to find an etf in a short squeeze? I’m guessing that doesn’t occur very often.
In any case, thanks for the conceptual information.
I learned something about atr’s from Wood today and now I learning something from you.
For a novice like me this kind of stuff is much appreciated
Symbol SQZ for ETF short squeeze
Douchbag
Playing SD, missing PCX due to being in ACI instead unfortunately.
Other than that ATPG looks the most interesting for those of us who aren’t riding coffee.
Love NTRI’s chart…the perfect hockey stick LOL
ATPG currently #1 in PPT
GDP has been very good to me recently, with 15% gains since XOM decided to go NG-happy.
Seems that capitalizing on squeeze-burning trends is the way to go, thus again long live GMCR. And CENX
Just remember, always… It’s A Wonderful Life.
___________
yes, it is til you get to the part where mr fly says…”and for the most part short sellers are very intelligent people..”
http://news.yahoo.com/s/afp/20091223/sc_afp/usgeneticsanimalsoffbeat
New Yorkers beware! New cockroach hits the Big Apple
The new species will be named Ponzius Retardus Politicus
Up, up, and up some more, there will never be down days again, ‘least that’s what my mammies told me!
Off the subject line of thinking here but………does anyone know much about (YTEC)??
FUQI.
And Merry Christmas Eve to you all! …Well, to most of you.
Check out the 2-year chart on VOW.BE. That was an epic short squeeze in late 2008 that briefly made it the most valuable company in the world.
For the most part, professional short sellers are very intelligent and are extraordinarily detailed in their reasoning behind their downside bets — –
Well thank you Master Fly
Well Harry Reid’s bribes worked and the demoncrats pass their socialist spending bill
bah … no need to get your bear tail in a tizzy…
you just joined the club of wealthy civilized societies around the world. all rich nations have some kind of universal healtcare system.
you shoulda stayed more quiet with all your money.
here’s the destrutooror of capitalism at work : http://news.bbc.co.uk/2/hi/business/8429427.stm
the auto industry about to be slapped in the morning with a butter wet order of toasts.
NOT!
idiocy knows no frontier…
wonder if our dear leader of the sud americacas got order of the “next generation” of russian nukes : http://ca.reuters.com/article/topNews/idCATRE5BN10O20091224
Good morning and almost merry christmas
I give Chavez; the pusillanimous but pompous dork, about another 3-5 years before he has that country completely destroyed. He is a fool of incomprehensible magnitude.
I’ve never seen that word “pusillanimous.”
It’s used in contrast to pompous, so must mean the opposite of pompous.
sniper6 likes PCX and expects it to continue printing new 52 wk highs in the coming days. It is my largest position.
Be advised, coal, steel and railroads will rule the fucking world, again.
Also legging into the DUK of Death, and NSC.
Thanks Fly! This is a great response to my question yesterday
Just sold out of FUQI and LIWA for gains of 13.2% and 5.2%, respectively, since 9:40am yesterday.
FTK???? Up >10% this morning. Why? No complaint, but why?
Make that 20%!
wasn’t some guy, think his name was Fly, just talking about short squeezes LOL?????
I’d also watch WFR. Nice move coming in the next few days…..
Well Mr. Fly, I’m chucking charts aside and following the artist.
In 500 GMCR at 72.90.
Are you still in at 72.18 or is the day still young.
Closing at 1 p.m.
Why do we have to wait 5 minutes to possibly EDIT our comments?
We already know most traders can’t spell,
that’s why there are ticker symbols.
You don’t have to wait 5 minutes. You just are unable to edit after 5 minutes.
Can you see what I post before the 5 minutes is up?
Low IQ comment of the day.
Apparently can’t read either.
lol, more like I am not expressing myself clearly enough.
That’s why I’m a sandflea buried under the sand.
I was just curious to see if others could read
comments immediately after they were posted.
They apparently can because you just added
a comment to yours after I saw your first comment.
Have a Merry Christmas No One!
Good advice about the short squeeze. You need to sell longs into short squeezes but be careful going short. I look for those stocks sometimes to go short. You need to be very patient and think how you would be punching the screen right now if you were short. Wait until you think you would have covered the last share and then give it a little time for the guys dumber than you. That is what happened with gold when it went to 1228. It did high volume there and the guys doing the squeeze put a lid on selling till it fell. It fell hard because hardly anyone was short after a large and continuous handing of the ass.
Fly,
Merry Christmas!!
Sincerely,
FTK
IBCers, what about AIG as a potential short-squeeze candidate?
Has greater than 20 percent short float,
and for those of you who look at charts –
it appears to be entering initial stages of volatility squeeze.
May be one to keep an eye on perhaps.