I smell a Short Sqeeze (JRCC,TASR,TSL)


Can you smell what the Rock is cooking? Could it be a short squeeze?

All of the sudden, we have some good data coming out in the news. "IMF Provides New Short-Term Credit", and "Unemployment drops in three-quarters of US states". The market is technically oversold, and it's time to take a look at some stocks with Short Squeeze potential. At the top of our list is: James River Coal (JRCC),Trina Solar (TSL), and TASER International (TASR).

Let's jump into why these Short Squeeze stocks could pay off big:

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James River Coal (JRCC) - Short Float 29.58%

JRCC missed some shipments last quarter and investors dumped the stock like Ashton Kutcher dumped Demi Moore. We think this is a great dip buy right now and the short squeeze could send shares back above the $10 level in short order.

Over the past 12 months James River Coal (JRCC) shares have traded between $5.41 and its 52-week high of $27.06.  James River Coal Co shares are now trading with a P/E Ratio of 12.5 and EPS of 0.56.

TASER International (TASR) - Short Float 7.54%

Taser doesn't have a huge short percent, currently at only 7.54%. But the stock has been breaking out lately, and with the Occupy Wall Street movement going on, Tasers are selling like hotcakes.

Over the past 12 months TASER International (TASR) shares have traded between $3.55 and its 52-week high of $5.91.  TASER International Inc shares are now trading with a P/E Ratio of 0 and EPS of -0.02.

Trina Solar (TSL) - Short Float 24.03%

The carnage in the solar sector this year is unprecedented. In spite of that, Trina has been consolidating since October and looks ripe for a breakout and short squeeze. Let me make clear, however, that this is a short term play. Get in and out and place a tight stop limit order.  

Over the past 12 months Trina Solar (TSL) shares have traded between $5.28 and its 52-week high of $31.08.  Trina Solar Ltd shares are now trading with a P/E Ratio of 1.6 and EPS of 3.78.


MASTERY Bottom Line (Street Fighter Style)MASTERY Bottom line:

This is the kind of play that can make you look like a genius if you're right, and a moron if you're wrong. So play it safe, scale into your positions and place some tight stop limit orders in case the trade goes the wrong way on you.

So much for the 1180 resistance. :)There were attempts for short squeeze though ( at least the stock I'm shorting). Luckily I'm still short :)I like your website. Keep up the good work and happy trading.     

Yep, I was a little bit premature (that's what she said) - I think we rally to at least 1220-1230 by the end of the week.

I think this is more like a pause before resuming sinking. I could be wrong...but I think this could be a short squeeze only for weak bears with weak stops.  

Thanks for the feedback market_newbee. While I was writing this article earlier, the market was breakeven - now it's down a tiny bit, but I think we're definately seeing some support here at S&P 1180. We'll see...