11Feb11:19 amEST

Creating a Temple of Doom for Shorts

Heavily-shorted stocks still seem to be putting quite a bit of duress on their respective short-sellers, as a general proposition. For reference, you can easily look up the short percentage of a stock's float for free using FinViz.com, for example. Anything more than 7-8% of the float (shares outstanding) sold short can be considered a candidate for a squeeze in what can still be deemed a hated bull run for some of those names. 

Some examples we have noted of late: RH TSLA, among many others. 

In addition, Stitch Fix, below on its updated daily chart, seems like it wants to join the party. This is a rather mocked retail name which is extremely heavily-shorted.

But in this market climate and above $25 on SFIX, I expect those shorts to be served a heaping serving of humble pie. 

To be sure, this sort of squeezing action will not last indefinitely. But it sure seems like we are at that stage of the bull where there will be fewer and fewer places for even savvy short-sellers to hide in equities. Just as a bear market eventually gets to everything, you make a case that a bull is just as thorough. 

Las Vegas Trends 02/10/20 {V... Fun Operating in the Shadows

 
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