The biotech market has a great divide between the haves and have-nots. Some stocks have experienced tremendous markup phases, while others can't seem to get out of the doghouse.
Today, we're covering a biotech stock that has rallied nearly 200% this year.
Despite this rally, the short sellers have continued to add to their positions and are close to carrying their largest short position ever.
With the stock coiling at a shelf of former highs from last summer, we're betting the short sellers are on the verge of unwinding their positions and sparking a short squeeze.
Stocks with high short interest are proving resilient, even in challenging market conditions, as the bears struggle to drive down even the most hated names.
With this in mind, it's time for another Freshly Squeezed report.
Here's our approach:
We find the most heavily shorted stocks in the market. Then, we monitor these names for signs of upward momentum. Once that momentum kicks in, we ride them higher as the bears get squeezed.
We got fresh short data on Friday, so let's dive in and talk about it.
Our scan is quite simple. It is designed to identify stocks with the most aggressive short positions.
When a stock is shorted, it means incremental buyers are waiting in the wings to close out their bearish bets.
We love this, as new buyers are the one true catalyst for higher prices.
When shorts are proven wrong, they become buyers of the stock. In many cases, this happens as momentum flows into these names and fuels massive short-covering rallies.
Names with high short interests continue to work in this environment as the bears struggle to take down even the worst stocks.
As such, it's time to run it back with another Freshly Squeezed report.
Here's how we do things...
We find the most heavily shorted stocks in the market. We wait for momentum to come into these names. And then we ride them higher as the bears get squeezed.
We got new short data this week, so let's dive in and talk about it.
Our scan is quite simple. It is designed to identify stocks with the most aggressive short positions.
When a stock is shorted, it means incremental buyers are waiting in the wings to close out their bearish bets.
We love this, as new buyers are the one true catalyst for higher prices.
When shorts are proven wrong, they become buyers of the stock. In many cases, this happens as momentum flows into these names and fuels massive short-covering rallies.
For this reason, we pair short-interest data with short-term momentum overlays, as this combination is needed to spark the moves we’re looking for.
The stock market is in the middle of one of its fiercest multi-day rallies in recent history.
Since last week, there has been a notable expansion in breadth, with areas like small caps, regional banks, biotechs, and speculative growth joining the bull market party.
Long story short, investors are beginning to move out on the risk spectrum and embrace some of the riskiest stocks the market has to offer.
Another way to see this offensive positioning is by analyzing the performance of the stocks that investors are betting against the most.
Names with sky-high short interests continue to work in this environment.
As such, it's time to run it back with another Freshly Squeezed report.
Here's how we do things...
We find the most heavily shorted stocks in the market. We wait for momentum to come into these names. And then we ride them higher as the bears get squeezed.
We got new short data last week, so let's dive in and talk about it.
Our scan is quite simple. It is designed to identify stocks with the most aggressive short positions.
While the market remains a mixed bag and participation is lacking, we're still seeing evidence of risk appetite.
How do we know?
The stocks that investors are betting against the most are making big moves... to the upside.
And we know just what to do in these environments.
We find the most heavily shorted stocks in our freshly squeezed universe. We wait for momentum to come into these names, and then we ride them higher with the squeeze.
We got new short data recently, so let's talk about how we're playing it.
Our scan is quite simple. It is designed to identify stocks with the most aggressive short positions. When a stock is shorted, it means incremental buyers are waiting in the wings to close out their bearish bets.
We love this, as new buyers are the one true catalyst for higher prices.
When shorts are proven wrong, they become buyers of the stock. In many cases, this happens as momentum flows into these names and fuels massive short-covering rallies.
Despite some messy action from the broader market in recent months, risk appetite remains elevated.
How do we know?
The stocks that investors are betting against the most are making big moves... to the upside.
And we know just what to do in these environments.
We look to our freshly squeezed universe and find the most heavily shorted stocks. We wait for momentum to come into these names, and we ride them higher while the shorts get squeezed.
We got new short data recently, so let's talk about how we're playing it.
Our scan is quite simple. It is designed to identify stocks with the most aggressive short positions. When a stock is shorted, it means incremental buyers are waiting in the wings to close out their bearish bets.
We love this, as new buyers are the one true catalyst for higher prices.
When shorts are proven wrong, they become buyers of the stock. In many cases, this happens as momentum flows into these names and fuels massive short-covering rallies.
Last week, we released a Freshly Squeezed report detailing long setups in some of the market's most heavily shorted stocks.
This week, we got fresh short sale data from FINRA as well as fresh breakouts from a growing list of stocks in our universe.
We thought it would be irresponsible not to do a follow-up report covering them.
This is just the environment we're in.
Here's what we're doing about it.
Our scan is quite simple. It is designed to identify stocks with the highest short positions. When a stock is heavily shorted, incremental buyers are waiting in the wings to close out their bearish bets.
We love this, as new buyers are the one true catalyst for higher prices.
When shorts are proven wrong, they become buyers of the stock. Many times, as this happens, momentum comes into these names and fuels massive short-covering rallies.
For this reason, we pair short-interest data with short-term momentum overlays, as this combination is needed to spark the moves we’re looking for.
As our Premium Members already know, we have a laundry list of scans that we run internally on an almost daily basis.
Different market environments, naturally, are more conducive to certain scans and less so to others.
We think our Freshly Squeezed scan is perfect for the current market. In fact, we wrote our initial report in December just to be sure we wouldn’t miss the moves that have taken place in recent weeks. We’re confident there is more to come.
With so many individual issues in massive drawdowns as the broader market begins to turn a corner, we’re witnessing some serious short-covering rallies in some of the most beaten-down names.
In fact, it’s already starting to happen. Bed, Bath & Beyond $BBBY was up by almost 100% the other day. It’s very likely they’re going bankrupt. But that’s just the kind of market we’re in.
