Monday, February 21, 2011

Short squeeze

Here are some charts that are setting up nicely. All these are highly shorted stocks with over 20% of the float short, making them prime short squeeze candidates if they manage to cross critical levels. One should always honor stops, but even if you are undisciplined, you must honor your stops while playing highly shorted stocks. They are probably highly shorted for some good reason, but as a short term trader I couldn't care less about what those reasons might be. Also, it being earnings season, be sure to check when a stock is reporting before taking any position in it. I have commented on the charts itself.

Take care and good luck!

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