When you own a stock in a short squeeze, your investing world looks a lot brighter. There are many traders that live and die with short positions, which I'll never understand. But hey whatever works, right? I'm not an advocate of blindly buying heavily shorted stocks just because they're being shorted. Many times, large short positions are justified and these stocks remain in downtrends for months on end. Trying to trade them on the long side results in pure futility. But others can represent nirvana.
I've posted prior short squeeze articles on Tesla (TSLA), Peloton Interactive (PTON), Charter Communications (CHTR), Ollie's Bargain Outlet Holdings (OLLI), and all of these have done quite well, especially those first two. We believe so much in this short squeeze philosophy that we have our very own ChartList specifically designed to capture these massive winners during their early stages. Here's the latest soaring short squeeze stock from this ChartList, gaining an almost unfathomable 172% in just 30 days:
More than 36% of GOGO's float was short as of mid-August, so when the company announced at the beginning of September that it was selling its commercial aviation business to Intelsat for $400 million, the stock soared. Those betting against the company had a very emotional decision to make and their covering of short positions is simply adding fuel to this fire. How this ends longer-term is anyone's guess, but in the short-term, when a stock benefits from suddenly good news and has a sizable short interest, it typically provides an ambush of buyers and stocks do exactly what GOGO did - explode higher on massive volume.
There's another stock on this Short Squeeze ChartList that has jumped 33% in the past week and is seeing its volume surge. It's a stock that I've been trading in and out of for the past several days. I plan to feature it tomorrow morning in my EB Digest newsletter article. This newsletter is 100% free with no credit card required. If you'd like to check out tomorrow's article and learn more about this short squeeze candidate, CLICK HERE to sign up!
Later this evening, I'll be joining my good friend and EarningsBeats.com member Charles Brown III on his weekly show, "CB3 LIVE!". You can join us for a thorough discussion about the current secular bull market and why you don't want to miss out on the next several years' gains. The show airs at 8pm ET and I'll join Charles at approximately 8:15pm ET. There'll be a live chat feature, so bring your questions with you and fire away! Here's the LINK, see you there!