4 Short Squeeze Stocks to Trade
The S&P 500 and the Down Jones Ind. finished 0.6% higher today despite zero progess made avoiding the 'Fiscal Cliff'. Four stocks did finish higher today and they are loaded with short interest. Those names are Zillow Inc. (Z), RadioShack Corp. (RSH), J.C. Penny Company, Inc. (JCP) and wildcard candidate Pandora Media Inc. (P). If the rally in equities continues the short sellers are going to have to switch course and send those four stocks higher.
Shares of Zillow Inc. (Z), RadioShack Corp. (RSH), J.C. Penny Company, Inc. (JCP) all jumped 4% on no credible news or events. Those 3 stocks are heavily shorted and the move higher corresponded with the major stock indices. Mastery believes that trend could continue for JCP, RSH, and Z. The shot in the dark is Pandora as the Street continues to punish the company and send its share price lower.
When a heavily shorted stock jumps on a single day the short sellers are forced to exit. The traders that are short on the given stock then have to liquidate and cover their position by buying back the stock. If enough short sellers buy back the stock, the price is pushed even higher and off to the races we go. We are also going with household name stocks that trade with a decent amount of volume. This allows you to get out if the stock isn't moving the direction you want.
Here is the 411 on these 4 possible short-squeeze stock plays:
Zillow Inc (Z) shares enjoyed a 4.78% rally today and closed at $28.50. Zillow's short float is at an outstanding 32%. Zillow shares have traded between $21.41 and $46.86 over the past 12 months. Keep in mind the Big Z is now 25% from its 52-week low.
J C Penney Company Inc (JCP) shares ticked 4.1% higher today to close at $19.23. JCP sports a 32% short float.
RadioShack Corp (RSH) shares ticked 5.58% higher today to close at $2.08. RadioShack has a massive 38% short float.
Pandora (P) shares have a 21% short float and today it closed flat at $7.95.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- And The Options Market Breaks (Again) | ZeroHedge
- Artificially Intelligent Robot Tells Creator It Will Keep Humans "In a People Zoo" | ZeroHedge
- Oversold Extremes and the Case for an October Low | Financial Sense
- China: Doomed If You Do, Doomed If You Don't | ZeroHedge
- Gold & Silver Are Jumping On Heavy Volume | ZeroHedge
- Gartman Does it Again: Stocks Set To Surge As Newsletter Bulls Hit 6 Year Low | ZeroHedge
- Heresy! China Won't Stick To IMF, World Bank Lending "Religion" With AIIB | ZeroHedge
The most relevant financial news and articles from the Internets
- French justice ministry hired 40,000 undeclared... | Business Insider
- Federal Sony data breach lawsuit settled, lawyer says | Business Insider
- Suze Orman, Debit-Card Dealer | BusinessWeek
- 230,000 migrants arrive in Greece this year: official | Business Insider
- AP sources: GOP seeks pledge to avert Trump third-party... | Business Insider
- California to end unlimited isolation for most gang... | Business Insider
- Russia's flagship airline to take over domestic rival | Business Insider