These Shorts May Fall Before Rome Does

Much like last summer, one would think that the disturbing images of American cities and buildings being overrun would lead to shaky equity markets jittery with uncertainty. Instead, we continue to see markets which are jittery alright. But they are jittery from the sugar rush of nonstop Fed liquidity which has led to uniquely persistent euphoria combined with dear valuations in many parts of the market. 

As we have been expecting, however, rates are on the rise to start 2021. And, eventually, if that continues I expect it to be a big of a game changer as we have seen since 2008 for markets.

But in the meantime it is worth noting that some of the most heavily-shorted names in the market remain extremely dangerous to short-sellers. Indeed, the likes of GME and SDC are two names we have profiled here and played with Members in recent months. 

In addition, GOGO, below on its weekly chart, which provides inflight wireless services, also features a crowded short percentage of its float (shares outstanding). As you can see, GOGO is basing nicely on this timeframe after a strong prior advance and may be setting up to punish the many shorts it has yet again. It may keep doing so, in fact, until the shorts start waving the white flag and cover in numbers. 

Until then, as long as the market maintains this sort of freight train vibe, GME GOGO SDC and similar names should be stalked for possible super squeezes higher.