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Short Squeeze News

Spotting a Short Squeeze Underway

Short Squeeze Search



Short Squeeze News

A trader searching for positive news events that could trigger a short squeeze in heavily shorted stocks will have a difficult time finding these stories. There is no news filter that allows a trader to screen news on stocks carrying a high short interest ratio or short position as a percentage of the float.

That is until now.

Low Price - High Short Interest Ratio/
Short Float

High Short Interest Ratio/
Short Float

Medium-High Short Interest Ratio/
Short Float

SI Reporting Date:2/24/2010   Price Date:2/26/2010

The unique tools on this page combine the depth of Yahoo’s finance news with a dynamic filter that displays only news of heavily shorted stocks. The first, “Low Price-High Short Interest Ratio/Short Float” looks at significantly shorted stocks trading under $10 per share. Big news events can have a bigger impact on low-priced stocks. The second news filter, “High Short Interest Ratio/Short Float”, filters for stocks of all prices and those not included in filter #1. The last “Medium-High Short Interest Ratio/Short Float” continues with heavily shorted stocks that are not in filter #1 or #2. Each news filter contains approximately 400 stock symbols.

A trader can use these tools to scan for news that could start a short squeeze, before the market open and after the previous day’s market close. To see new stories as they are released just reload the Yahoo Finance news page with the ctrl-r keys or by clicking the reload icon on the browser.

Short interest data is released twice monthly and these news filters are updated with new symbols. Therefore, do not bookmark the Yahoo Finance page, as the symbols will change soon. Instead, bookmark this page so that you can be assured of getting the news of the most heavily shorted stocks.

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News events frequently are the spark that starts a rally in a stock. Surprise earnings, FDA drug approvals and analyst upgrades all can send a company’s stock into a multi-day climb. These pops in stock prices, can just as easily fade if there is not sustained buying interest taking the stock higher.

A great source of buying pressure can be found in a stock that has a large short interest. When these stocks move higher in price, the move can create a panic in traders with large short positions, forcing them to buy back the stock to bring an end to the pain. This panic buying is called a short squeeze and it can present a rewarding trading opportunity to those who can spot one in the early stages.

Enhancements

When you are in the Yahoo Recent News page, you can type Ctrl and + increase the font size displayed.

To expand the timeframe that the Yahoo page displays click the “more headlines” link down the page.

To customize the news sources, you will need to register with Yahoo (free). If you are not signed into Yahoo, you should see the Customize News button. Click this and sign in.

From here, or if you are already signed into Yahoo, you will click the “Change Display … edit” link to select the news sources to choose from.

One strategy is to click all sources except Edgar Online, Edgar Online Financials, CCBN and Starmine. These sources rarely display meaningful headlines.

Criteria for Symbol Inclusion

Stocks having either a large short interest ratio or a large short interest as a percentage of the float are included in these screens. The stocks are sorted in descending order of the larger of the two numbers, so that a stock with a SIR of 10 days coverage is ranked the same as a company with a 10% short position as a percentage of the float.

ETFs and investment funds are excluded. Stocks with a dollar volume (price X average daily volume) of less than $10,000 are also not included. Due to the large number of stories that render the screeners less useful, the following symbols are excluded: TM, F, GM, FRE, FNM and C.

Mission Statement

The object of this site is to provide a number of tools that help the trader discover and trade the short squeeze profitably.

Disclaimer

This website does not recommend the purchase or sale of any security. We are not investment advisors and provide this site for informational purposes only. We make no guarantee of the accuracy of any news story we link to.




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