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
- Black Friday Stock Sale Dip-Buyers Ignore China, Credit, Commodity Carnage | ZeroHedge
- ISIS Oil Trade Full Frontal: "Raqqa's Rockefellers", Bilal Erdogan, KRG Crude, And The Israel Connection | ZeroHedge
- China Begins Military Colonization Of Africa With First Ever Overseas Army Base At Key Oil Chokepoint | ZeroHedge
- The Fundamental Truth of the Market Matter | Financial Sense
- Top U.S. Air Defense Commander: Turkey’s Shootdown of Russian Jet “Had to Be PRE-PLANNED” | ZeroHedge
- Goldman's Meteoronomists Have A Dire Forecast: "Winter Is Coming" | ZeroHedge
- Do Not Panic America - Elite FBI Teams Are Tracking At least 48 "High Risk" ISIS Suspects In The US | ZeroHedge
The most relevant financial news and articles from the Internets
- 13 tips to eliminate debt from regular people who paid off thousands | Business Insider
- Oil countries only slowly warming to climate challenge | Business Insider
- 2 arrested over with attack on luxury hotel in Mali | Business Insider
- Chad Carr honored with moment of silence before The Game | Business Insider
- Here's what NBA players looked like before they were covered in tattoos | Business Insider
- Jihadist group Ansar Dine claims deadly attack on... | Business Insider
- Tyson Fury ends Wladimir Klitschko's heavyweight reign | Business Insider