This is
a stock short squeeze.
Not exact matches
When markets rise, these
short sellers are «
squeezed,» as they have to buy
stocks at a high price that they bet would fall rather than rise.
Both
stocks are poised for a potential rise based on current indications, meaning that there is a good chance that these
stocks could be
short -
squeezed.
A
short squeeze occurs when the price advances so fast that
short sellers are forced to cover their positions (buy the
stock back), which drives prices even higher.
Two measures useful in identifying
stocks at risk of a
short squeeze are (a)
short interest and (b)
short - interest ratio.
By Jennifer Ablan (Reuters)- Jeffrey Gundlach, the chief executive officer of DoubleLine Capital, said on Tuesday that the rally in U.S.
stocks, which began on Monday, feels like a
short squeeze and characterized U.S.
stocks as «dead money.»
A
short squeeze is a situation in which a heavily
shorted stock or commodity moves sharply higher, forcing more
short sellers to close out their
short positions and adding to the upward pressure on the
stock.
It implies that
short sellers are being
squeezed out of their
short positions, usually at a loss, and is generally triggered by a positive development that suggests the
stock may be embarking on a turnaround.
A
short squeeze is a situation in which a heavily
shorted stock or commodity moves sharply higher, forcing more
short sellers to close out their
short positions and adding to the upward pressure on the
stock.
Contrarian investors look for
stocks with heavy
short interest, specifically because of a
short -
squeeze risk.
It implies that
short sellers are being
squeezed out of their
short positions, usually at a loss, and is generally triggered by a positive development that suggests the
stock may be embarking on a turnaround.
The trader could also sell
short the next morning when the
stock gapped down, but a bad fill would place the position at risk for a reversal or
short squeeze.
Below, are a number of
stocks which are poised for a possibly imminent
short squeeze, as the tax - loss selling fades in the last few days of trading for 2011.
At the end of the year, these cycles frequently reverse and these reversals often begin with the end of tax - loss selling in the last days of December, then the
stock starts to show strength, then buyers get confidence to buy since the
stock has bounced off the lows, and this often triggers a
short squeeze as heavily
shorted stocks are covered.
Short selling carries less risk when the security being shorted is an index or ETF, since the risk of runaway gains in them due to a short squeeze is much lower than it is for an individual s
Short selling carries less risk when the security being
shorted is an index or ETF, since the risk of runaway gains in them due to a
short squeeze is much lower than it is for an individual s
short squeeze is much lower than it is for an individual
stock.
Stocks with
short interest above 40 % are highly susceptible to potential
short squeezes.
Stocks with smaller floats and high
short interest have the highest danger of
short squeezing as shortable shares become scarcer more quickly.
Short squeeze When a large number of short sellers target the same stock, the price can rise in a self - perpetuating circle known as a «short squeeze&ra
Short squeeze When a large number of
short sellers target the same stock, the price can rise in a self - perpetuating circle known as a «short squeeze&ra
short sellers target the same
stock, the price can rise in a self - perpetuating circle known as a «
short squeeze&ra
short squeeze».
The move took major cojones because with such a large percentage on the
short side, around 20 percent, in the hands of one person, those on the other side of the trade — who are betting the
stock will go up — can try to orchestrate the aforementioned «
short squeeze,» by buying up shares.
8) Or consider the story of Piggly - Wiggly, where the founder
squeezed the
shorts trying to manipulate his company's
stock, only to take on so much debt in the rescue that eventually he had to declare bankruptcy.
One might, for example, trade oil futures as a hedge on a position in transportation
stocks; when oil prices rise, trucking and airline companies suffer in the
short term as their margins get
squeezed due to fuel costs.
As the US President's new main economic advisor, Larry Kudlow managed to calm markets, saying that a deal with China is around the corner,
stocks markets continued to push higher overnight and in the first hour of trading after yesterday's furious
short squeeze.
A
short squeeze occurs when a heavily
shorted stock or commodity rises in price, forcing
short contract holders to «
squeeze» out of their
short positions at a loss and driving prices further up with the increased pressure.