Use Shortsqueeze.com to Determine Your Risk and Opportunity
If you ever spot a stock that is surging by double digits within a very short time span, you may have run into a stock that is being “short squeezed”. Short squeeze is a term used by investors describing a situation in which stocks get “squeezed” upward rapidly, driven by the short sellers who are covering their short positions.
Short squeezes often result when the price has risen to a point where short sellers decide to cut their losses and get out. This can originate from stocks that have been targeted heavily on the short side with high % of short sellers relative to the % of shares floating. All it takes then is one big news for the demand of the particular stock to surge, disrupting the balance between supply and demand. Often times, this is followed by a series of buying sessions, which drives the short sellers to cover their positions by buying the stock back.
Below is an example of AIG being short squeezed. Now, keep in mind that not all stock surges are driven by short squeezes. It is very possible for stocks to increase in price rapidly generated by increased demand versus supply.
So you can see that identifying the right stocks with potential short squeeze can reward you greatly. Now how do you go about identifying that?
shortsqueeze.com is your answer.
Short Squeeze dot com is one of the most popular websites for identifying short squeeze opportunities. It features an array of useful data at no cost but also offers more in depth data with a subscription based service should you need more in depth features.
This is what you get to see when you enter a quote at shortsqueeze.com.
“Short Squeeze Ranking” is the proprietary data that it offers as part of the content. Taken directly from shortsqueeze.com:
ShortSqueeze.com has developed the Squeeze Ranking™ system used to gauge a stock’s squeeze potential. We use a proprietary algorithm used to rank a stocks potential for either a bullish or bearish stock price move. Squeeze Theory™ is the creation of Dylan Wetherill, the founder of Short Squeeze™. The theory seeks to identify the basic principles that cause a stock to experience a short squeeze (bullish) or a long squeeze (bearish). For example, a Squeeze Ranking™ of 0 is neutral, with unlimited up or down values to mark bullishness or bearishness. A Squeeze Ranking™ of 2,000 would be more bullish than a Squeeze Ranking™ of 50. Conversely, a negative Squeeze Ranking™ of -3,000 would be much more bearish than a Squeeze Ranking™ of -50. As a Short Squeeze™ member you are able to search all stocks and find stocks with the highest Squeeze Rankings™: short squeeze (bullish) and long squeeze (bearish). The process Squeeze Ranking™ system is designed according to the principles of Squeeze Theory™.
Whether you sign up for their monthly service or not is up to you. However, you must check out the site and understand just how useful its data can be.