Let’s Play Some Short Squeezes
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.
————————————————————————————-
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 |
————————————————————————————-
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 |
————————————————————————————-
[[AMED]] is overbought. However, the short interest in this one is high. Its hard to say if it will have a significant pullback, or if the short interest will keep it propped up. This company is not a biotech. They provide home health nursing services.
| 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?
July 13th, 2008 at 9:51 pmTRLG 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.
July 13th, 2008 at 9:59 pmBoom, 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…
July 13th, 2008 at 10:02 pmI 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!
July 13th, 2008 at 10:04 pmJuice,
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.
July 13th, 2008 at 10:05 pmGlad to see you back Wood!
Just wasn’t the same without all those wonderful charts and analysis!
July 13th, 2008 at 10:48 pmWelcome back Shedder!
July 13th, 2008 at 11:23 pmThanks Leonard! I still chuckle when I see you around after that election video….
July 13th, 2008 at 11:28 pmDog! Thanks! Life is good, no?
July 13th, 2008 at 11:28 pmYep, it is good. Better with you back in the neighborhood.
July 13th, 2008 at 11:46 pmWoodshedder, you get a new nickname….Bret Favre!
Glad to have you back!!!
July 13th, 2008 at 11:47 pmGood to have you back Favre.
July 14th, 2008 at 1:03 amTRLG 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…
July 14th, 2008 at 4:50 amThanks!!!!!
July 14th, 2008 at 4:45 pm3 out of 4 ain’t bad, for a day like today…
July 14th, 2008 at 7:23 pm“… a day like today.”
Whattaya mean? A 500 point up day?
____
July 14th, 2008 at 7:50 pmPatience, Jake. The week has barely begun.
July 14th, 2008 at 8:00 pmThe Woodshedder 500 Point Rally has been postponed until further notice.
July 14th, 2008 at 8:35 pmThank 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?
July 14th, 2008 at 8:36 pmDP, did I specify a direction?
July 14th, 2008 at 8:37 pmFriend works at bloomingdales, says they cant keep TRLG jeans in stock, they sell out the fastest.
July 14th, 2008 at 9:04 pmSSSqqqqqquueeze me baby!
Wooheeee….
Jake, you watching this list?
July 15th, 2008 at 3:39 pm[...] 105.45 +6.12%) I profiled this one Sunday evening in my squeeze the shorts post. It is working like a charm. United Therapeutics Corporation, a biotechnology company, engages [...]
July 15th, 2008 at 11:21 pm