IT’S BEAR SEASON

I bought RBCN today because the market is applying pain to the shorts. When that happens, they tend to get rattled out of their favorite positions, until the buying frenzy dissipates. Their favorite positions are easily found by screening for stocks with large percentage of shares sold short, compared to the overall float. When markets run higher, natural buyers bid up stocks, causing them to go higher (duh). But stocks that are heavily shorted tend to get a double boost, due to the combination of short sellers buying to close out positions and of course the effects natural buyers have on the supply versus demand relation.

I ran three screens for you in The PPT this evening.

Biggest short squeeze winners over the past month.

Biggest losers, with large short positions, over the past month.

Then I took the biggest losers screen and modified it to search for stocks that are strong, technically, and saw an increase of 5% or more in its daily “Hybrid Score” (the Hybrid score is PPT’s proprietary rating system which ranks stocks based on technical and fundamental factors).

This is just one of the hundreds of ways I use the software.

A great man once said “the most valuable commodity I know of is time.” Don’t waste it.