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
- Guns, Drugs, & Booze: The Bipartisan Support For Prohibition | ZeroHedge
- Playing the Chinese Trump Card | Financial Sense
- Do You Feel Lucky? | ZeroHedge
- Forget the Sept. '15 Fed Tightening – There Has Been a Stealth Tightening Since Sept. '14 | Financial Sense
- Since 2014 Foreign Central Banks Have Withdrawn 246 Tons Of Gold From The NY Fed | ZeroHedge
- What Happens When A Company, Or An Economy, Can’t Squeeze Any More Juice Out Of The Lemon | ZeroHedge
- Chinese Stocks Slump After "Arrest-Fest", Yuan Strengthens Most In 9 Months, Goldman Cuts Outlook | ZeroHedge
The most relevant financial news and articles from the Internets
- Here’s the full speech Kanye West gave at the VMAs that everyone is talking about | Business Insider
- IS detains dozens in Iraqi town after rare street protest... | Business Insider
- Alcatel-Lucent boss under fire over huge reported bonuses... | Business Insider
- Trash to treatise: NYC professor sees meaning in garbage | Business Insider
- The NFL season hasn't even started, and things between... | Business Insider
- Google is showing developers how to turn off iOS 9's security features... | Business Insider
- An artist has done something incredible with the most mundane piece of furniture... | Business Insider