Your EarningsBeats Digest for July 17, 2024 📈Scroll for the latest market happenings.
Small Cap Strength Has Triggered Short Squeezes Galore
At EarningsBeats.com, we research short squeeze candidates, looking for stocks with very high "short % of float". When short sellers short a stock, they essentially borrow shares from owners of the stock, with the promise of buying them back later and returning those borrowed shares to the rightful owners. The short sellers' hope is that they'll borrow and sell
stocks, looking for a drop in price, at which time they'll back back those shares cheaper and return them to the owners. So they look to buy low and sell high - just like every other trader, they simply do it in reverse order, selling first and buying later. The higher the short % of float, the more guaranteed buyers you'll have later. Any type of positive news or price action can trigger a tsunami of buyers (short squeeze), sending prices higher and into a frenzy. Here
are the top performers in our Short Squeeze ChartList (SSCL) from Tuesday: Enter short squeeze stocks:
These were the Top 20 performers on our SSCL. The worst performer on this Top 20 gained nearly 8%. The top gainer, Big Lots (BIG), surged 25%. In the far right column, it shows the asset class, and nearly every stock on our SSCL is a small cap stock. Small caps (IWM) have absolutely screamed higher over the past week, triggering a tsunami of small cap buying among our
short squeeze stocks. When I pull up a week-to-date performance summary of the SSCL, the Top 20 gained anywhere from 25% to 58% - IN JUST ONE WEEK! Most of the time, I ignore this list, because many stocks are shorted for good reason. However, when they get moving, aggressive traders can find nuggets of gold.  Want access to all our ChartLists, including our Short
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Happy Trading!
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Tom Bowley
Chief Market Strategist
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