The Short Squeeze

The short squeeze happens when many people are on the wrong side of a trade. When a huge number of people think a stock is going to decline AND we are in a bull market AND the particular name is at or near 52 week highs. A short squeeze can ensue.

I define it as a sharp increase in price as everyone that is short the name has to cover (buy it at a higher price). This can last for a few days or a few weeks.

Here are 4 names with short squeeze potential:

SYM has 45% of its float held short

UPST has 40% of its float held short

AI has 38% of its shares held short

CVNA has 35% of its shares held short.

These are all potential squeezes, and in general, shorter term trades.

Take Care. -Jack