Hostile Environments

Along the lines of the epic short squeeze in GME taking place, other uniquely heavily-shorted names like GOGO are joining the party this morning. SDC continues to be a name I am watching for a reentry after selling it into strength a few sessions ago with Members. 

The larger point, though, is that when the market enters one of these max-pain-on-shorts modes, the heavily-shorted names become even more ripe for outsized moves higher. Hence, the GME explosion should not be much of a surprise except to the massive and numerous shorts allowing their ego and hubris to supersede basic risk management concepts.

Furthermore, the general tone and tenor of such squeezes tends to galvanize opportunistic longs to pounce on other heavily-shorted names in what is a hostile environment for bears in the squeeze plays. 

PETS fits the bill as another one of these names, seen below on its daily chart coiled up. The stock has about 30% of its (low) float shorted, making it all the more ripe for a squeeze if the market party persists. 

As an aside, and you may want to file this away for future reference, in a bear market the exact opposite rings true: As the bear market matures, the stocks which survived the bear fairly well tend to attract a plethora of longs. Eventually, though, the bear claws come out and attack those names, too, leading to a "long squeeze" over.