The market cannot continue to sell-off forever. There will be a bounce, and you should have a list of longs ready to pounce on when it happens. Maybe with the [[FNM]] and [[FRE]] “backstopping,” this week will be the week to grab some longs and reset for shorts.
I have run some screens to find stocks with sound chart patterns and high short interest. I think there is a good chance for some explosive moves in all of these. One warning though…I would not hold these through earnings. Typically, large short interest is a sign of bad things ahead. These bad things typically are unveiled during earnings, (or worse, secondaries). In the mean time, should these stocks continue to head for new highs, most short positions will be deeply under water and the pressure to cover will be strong.
After a strong breakout in May, [[TRLG]] has begun to consolidate and looks as if it might be ready to spring from its first test of the 50 day moving average.
| Short Interest (Shares Short) | 9,535,000 |
| Days To Cover (Short Interest Ratio) | 21.0 |
| Short Percent of Float | 60.54 % |
| Short Interest – Prior | 11,738,200 |
| Short % Increase / Decrease | -18.77 % |
| Short Squeeze Rankingâ„¢ | 192 |
Obviously, the short interest in this one is huge. A squeeze here could be very profitable.
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Danny and I both had positions in [[UTHR]] after its breakout. It has since carved out a nice cup-with-handle pattern. This one is obviously under accumulation, evidenced by support at the 50 day average.
| Short Interest (Shares Short) | 4,602,100 |
| Days To Cover (Short Interest Ratio) | 12.8 |
| Short Percent of Float | 20.77 % |
| Short Interest – Prior | 5,065,000 |
| Short % Increase / Decrease | -9.14 % |
| Short Squeeze Rankingâ„¢ | 144 |
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Up next is [[ALTH]]. As this is a biotech who seeks treatment for cancer, beware that trading this can be like playing catch with a hand grenade. That being said, it is a pretty chart, with good volume. At this point, the shorts have got to be nervous that ALTH is going to go on a full-on breakout run.
| Short Interest (Shares Short) | 4,677,900 |
| Days To Cover (Short Interest Ratio) | 12.3 |
| Short Percent of Float | 17.95 % |
| Short Interest – Prior | 4,945,400 |
| Short % Increase / Decrease | -5.41 % |
| Short Squeeze Rankingâ„¢ | 125 |
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| Short Interest (Shares Short) | 6,868,500 |
| Days To Cover (Short Interest Ratio) | 15.0 |
| Short Percent of Float | 26.39 % |
| Short Interest – Prior | 6,740,400 |
| Short % Increase / Decrease | 1.90 % |
| Short Squeeze Rankingâ„¢ | 186 |
Should you all have any other stocks near new highs with large short interest, feel free to leave the symbol in the comments section.
welcome back. did you get the mp3s i emailed you?
TRLG is one of my fave shorts right now. I tried to add to it the last couple days but couldn’t get a borrow. Maybe it runs up this week on a squeeze but its days are numbered.
Boom, I got em. Meant to email you back. Forgot.
Anyway, I was waiting for you to bust out some smokin’ lead…What was up with all that shit that sounds like The Edge? Just kiddin’ ya.
Seriously though, those Bonham tracks are very cool…
I shit you not. This market has seen the bottom. I’m buying shitloads of FNM and FRE tomorrow. Just watch what happens.
Fuck you, bears— you’re dead!
Juice,
Overall, doubtful that the retail jean market will blow the doors off the numbers. However, if they are popular, which, from what I read, they are, they could continue to move up while the fad continues.
However, I’m only considering it for a few days during a bounce.
Glad to see you back Wood!
Just wasn’t the same without all those wonderful charts and analysis!
Welcome back Shedder!
Thanks Leonard! I still chuckle when I see you around after that election video….
Dog! Thanks! Life is good, no?
Yep, it is good. Better with you back in the neighborhood.
Woodshedder, you get a new nickname….Bret Favre!
Glad to have you back!!!
Good to have you back Favre.
TRLG jeans are only getting more popular. Just my observations of the NorCal scene…
I say it won’t fall past $22, at which point I will be ready to go long…
Thanks!!!!!
3 out of 4 ain’t bad, for a day like today…
“… a day like today.”
Whattaya mean? A 500 point up day?
____
Patience, Jake. The week has barely begun.
The Woodshedder 500 Point Rally has been postponed until further notice.
Thank you.
-The Management
Jake, funny.
Seriously, it would be funny if it would have been a 500 point up day, to have those stocks up so slightly. As it stands, I think they showed relative strength, in a very difficult environment, no?
DP, did I specify a direction? 😉
Friend works at bloomingdales, says they cant keep TRLG jeans in stock, they sell out the fastest.
SSSqqqqqquueeze me baby!
Wooheeee….
Jake, you watching this list?