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Short on Value: Could a massive short squeeze put equity bears in danger?

Started by tfn · 11 mesi fa

At TodaysFinancialNews.com, we use short recommendation sparingly for just that reason.
There is a certain irony to the correlation of short selling and bullish market moves. With trillions of dollars now parked in borrowed stocks, it is possible — if not probable — to see an accelerated upward move in the markets. When short sellers ... Continue reading »

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  • During the recent downturn of the economy, the market has accumulated a lot of short interest. Naked shorts are prevalent in a lot of healthy stocks, driving them into becoming attractive value investments. The problem of trading possible short squeeze is that you are trying to catch a falling knife. In addition, timing the short squeeze is extremely difficult, it takes a lot of patience. But again, the reward is great also.

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