A Similar Fate to Custer

Just as prominent hedge fund and now-famous short-sellers became (literary, in some cases) movie stars and celebrities after various success stories from the 2007-2009 global financial crisis, many of those same names as well as a new cast of others are finding themselves in a similar fate (financially speaking) to George Armstrong Custer.

Custer himself once seemed invincible, his long, flowing hair capturing the hearts and minds of the Union after his heroism during The Civil War at Gettysburg, especially, against the estimable J.E.B. Stuart. A little over a decade later, however, Custer met his infamous "Last Stand" demise near Hardin, Montana, in spectacular fashion against Native American forces led by Crazy Horse and Sitting Bull. Ironically, Custer's Last Stand also led to the demise of Native Americans as a people in the following decades. But Custer met his imminent end there. 

In the current market, the crowded and heavily-shorted stocks are on a tear again this morning, with no letup in the likes of GME. In addition, other squeeze plays like AMC BB FUBO GOGO M SPCE are moving higher with a legitimate threat to replicate what we are seeing in GME. 

Another idea which could move with the squeeze plays is SDC, the medical device-related name with at least 30% of its float short. 

On the SDC daily chart, below, you can see the play moving nicely so far off its recent multi-week pullback. 

Simply put, there are no safe places for crowded shorts right now, which is why we always talk with Members about various concepts insofar as short-selling in general. You cannot afford to get caught short crowded squeeze plays, especially in these sorts of markets. 

On that note, if this is Custer's Last Stand for shorts, that is obviously a painful situation and has been catalogued as such in the likes of GME.

But let us not forget that Custer's Last Stand led to the demise of the winners from that battle, too...