In recent weeks, I've been discussing a few stocks from our popular Short Squeeze ChartList (SSCL).
The SSCL is one ChartList that we update twice a month for our members. It's an organized list of the stocks with the highest short percentages of float. On heavy volume advances, these stocks can see significant imbalances between supply and demand and, as a result, short-term inefficiencies in pricing. I first discussed TG Therapeutics (TGTX) when it cleared 11.88 closing price resistance. On Tuesday, TGTX closed at 18.81, resulting in a 57% gain since closing at 12.07 on November 17th (5 weeks ago). And TGTX still hasn't seen one day where short sellers appear to be panic buying. Also, in the latest Short Squeeze list, TGTX remains with a short % of float at 26.14%, only slightly beneath where it was one month ago. This one could really get exciting should the ascent continue. But today, let's look at Wayfair, Inc. (W) as another short squeeze candidate:
Enter Wayfair, Inc. (W):
Anyone who has shorted W since mid-September is under water and losing money. The move last week really seemed to get the shorts attention as W moved from 50.19 at its low on Wednesday to its high of 67.11 on Thursday. That was roughly a 34% gain in just over 24 hours and volume each day was double its normal volume. It closed at a new recent high yesterday and could be poised for yet another big advance later this week. Just keep in mind that Short Squeeze stocks, by their nature, are extremely risky. Those trading W should really have a gambler's mentality, looking for a very quick score, while accepting much-higher-than-normal downside risk. I rarely would consider holding any Short Squeeze stock for the long-term. Most of their advances tend to come in short-term bursts.
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Happy Trading!Tom BowleyChief Market StrategistEarningsBeats.comBetter Timing. Better Trades. |