iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,433 Blog Posts

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.

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38 comments

  1. The Zombie

    The Fly is God.

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  2. Hawaii Five0

    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

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  3. TA

    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

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  4. Prophet Joe

    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

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  5. JakeGint

    Just remember, always… It’s A Wonderful Life.

    ___________

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    • mrsbuttons

      yes, it is til you get to the part where mr fly says…”and for the most part short sellers are very intelligent people..”

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  6. dave

    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

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  7. Damon

    Up, up, and up some more, there will never be down days again, ‘least that’s what my mammies told me!

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  8. heaterman

    Off the subject line of thinking here but………does anyone know much about (YTEC)??

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  9. Mr. President

    FUQI.

    And Merry Christmas Eve to you all! …Well, to most of you.

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  10. Mr. President

    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.

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  11. TMoe

    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

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  12. TMoe

    Well Harry Reid’s bribes worked and the demoncrats pass their socialist spending bill

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    • Indie

      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.

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  13. Indie

    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

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    • heaterman

      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.

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      • sandfleas

        I’ve never seen that word “pusillanimous.”
        It’s used in contrast to pompous, so must mean the opposite of pompous.

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  14. sniper6

    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.

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  15. mhass33

    Thanks Fly! This is a great response to my question yesterday

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  16. Mr. President

    Just sold out of FUQI and LIWA for gains of 13.2% and 5.2%, respectively, since 9:40am yesterday.

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  17. Largebill

    FTK???? Up >10% this morning. Why? No complaint, but why?

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  18. No One

    I’d also watch WFR. Nice move coming in the next few days…..

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  19. Comic Book

    Well Mr. Fly, I’m chucking charts aside and following the artist.

    In 500 GMCR at 72.90.

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  20. sandfleas

    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.

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    • Largebill

      You don’t have to wait 5 minutes. You just are unable to edit after 5 minutes.

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    • No One

      Low IQ comment of the day.
      Apparently can’t read either.

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      • sandfleas

        lol, more like I am not expressing myself clearly enough.

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        • sandfleas

          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!

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  21. tgarfield

    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.

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  22. Goldie

    Fly,
    Merry Christmas!!

    Sincerely,
    FTK

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  23. sandfleas

    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.

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  24. Fitness Reader

    Excellent issues altogether, you just received a new reader. What would you suggest in regards to your put up that you made some days ago? Any positive?

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