Profiting on Stocks with High Short Interest


At, we provide our members with various ChartLists of stocks that we believe could give them an upper hand when trading. This includes our Short Squeeze ChartList, which currently has 79 companies that have short percentage of float above 20%. This means that many traders are betting against the stocks, some for a very good reason. The list shouldn't be viewed as bullish - in fact, quite the contrary. However, when stocks on this list break out above key resistance levels, a short squeeze can ensue, triggering a fast rise on unusually heavy volume. That's the purpose of the list - to attempt to catch short squeezes. As an example, take a look at the two charts below - Gamestop (GME) and Workhouse Group (WKHS) - both of which are currently on the list.

These stocks were added to the Short Squeeze ChartList on August 17. Since then, they've both risen by over 100% - not too shabby!

Of course, not every stock on the list has performed like these two, but they do provide an example of what can happen once a short squeeze is under way. In fact, our Chief Market Strategist Tom Bowley, who is the architect of the list, will be highlighting a new Short Squeeze Trading Candidate in our EarningsBeats Digest (EBD) this upcoming Monday. If you would like to see which company he is highlighting, just click on this link and fill out the form; you will get the EBD Monday morning featuring the stock.

Spotting stocks that have the potential for meaningful moves higher is not so easy. So imagine if you can zero in on those stocks that are clearing key resistance plus have high short interest. That's quite a powerful combo.

At your service,

John Hopkins

Subscribe to ChartWatchers to be notified whenever a new post is added to this blog!
comments powered by Disqus