Thanksgiving Week Squeeze Rentals

It remains to been if the likes of Fitbit can build on recent strength to cement a long-term bottom. However, the heavily-shorted fitness hardware play has clearly been a beneficiary of shorts backing off a bit as Thanksgiving approaches. 

While it is true that some beaten-down names like APRN P SNAP TWLO have been unable to muster much of a bounce this year, let alone an actionable short squeeze to trade on the long side, the FIT mover over $6.40 is promising given that the name recently held a 200-day simple moving average backtest. Indeed, FIT is now trading above all of its major daily chart moving averages and ought to be watched more closely going forward for signs of a durable bottom, beyond a holiday reprieve. 

On that note, shifting sectors we have a still-heavily shorted U.S. Steel name bouncing off its 200-day moving average. Again, FIT and X could not be more different in terms of their sectors and business models. 

But, technically, and seasonally, there are similarities as both names are providing holiday week trading squeeze "rentals" for longs if nothing else.

On the X daily chart, below, bulls simply need to continue to operate well above the yellow line (200-day) in order to sustain recent progress. Moreover, if X can surge over $29/$30 in the coming weeks we may see a tradable move in steels and materials leading up to the December FOMC. 

For now, the likes of FIT and X are keeping bulls occupied as bears retreat into the woods amid the low  volume holiday drift up.