EarningsBeats.com Digest for September 21, 2020
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Trading Places Live!
Join Tom Bowley for a briefing on market activity on Mondays and Wednesdays from 9-9:30 am EST before the opening bell. Click here to listen live or visit our YouTube page later today to view the recorded session.
Save the Date - Short Squeeze ChartList Webinar
Mark your calendars for this upcoming Saturday, 11 am EST, when EarningsBeats.com Chief Market Strategist Tom Bowley will conduct a webinar for all EarningsBeats community members that will focus on our "Short Squeeze ChartList."
More details to follow!
Awaiting The Next Short Squeeze Breakout
We've witnessed several major short squeeze winners in 2020 and that's a big reason why we continue to track these heavily-shorted stocks in a separate ChartList for our EB.com members. Most stocks that have tons of short interest have plenty of fundamental and technical faults. Because of that, we want to avoid those stocks. However, some do begin to show improvement and when rotation and technical buying kick in, explosive moves higher can
be the result. Right now, I'm watching Stitch Fix, Inc. (SFIX). Check out its chart:
I see technical improvement in the clothing & accessories group ($DJUSCF), both on an absolute and a relative basis. SFIX has been performing quite well vs. its clothing & accessories peers, and it's been trending above its rising 20 day EMA of late. While not shown on the chart above, SFIX now flaunts a SCTR score of 89, which confirms its improving relative strength. I see just one thing missing here - a closing breakout above 30.
If that were to occur and volume increases to support that move, we could see shorts begin to run for cover. SFIX has an extremely high short % of float (43.58%) to rank 11th on our Short Squeeze ChartList (out of 72 companies). Let's watch for that breakout. In the meantime, we just updated our Short Squeeze ChartList, which is available for download for all of our paid members, including our trial members. I'd love to have you join, get a copy of this ChartList,
and give our service a try!
Happy trading!
Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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