Batter Up for Blue Apron and Snap

Following-up on our discussions both on this website and for Members last week regarding Overstock and the short squeeze potential in that controversial name, we have two other candidate for explosive short squeezes.

Both Blue Apron and Snap have been pummeled to no end over the last few quarters, with a growing consensus that both firms could easily go belly-up. 

Putting the funedmanels-related arguments to one side, though, it is hard to argue with their respective daily charts, below, showing at least some modest technical improvements. 

True, both APRN and SNAP remain below their respective 200-day moving averages, but both have also started to turn the heat up on their numerous short-sellers since Christmas Eve, alongside the broad market, of course. 

Circling back to the OSTK these, the current broad market may very well be in the midst of a max-pain scenario where some of the more heavily-shorted names stage improbable moves higher to turn the tables on shorts who may have overstayed their welcome after steep, prior downtrends. 

Unlike in baseball, shorts are not part of a team, even when they are clustered together like in APRN OSTK SNAP, and they would be wise to remember that crowded shorts in stocks can lead to extremely violent squeezes from time to time.