3 Short Squeeze Stocks That Are Ready to Pop

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Bar none, the twice-monthly short interest data has provided the best profit potential for those investors that are willing to pour through the information to find stocks that are set-up for a short squeeze rally to drive prices higher.

3 Short Squeeze Stocks That Are Ready to Pop Short Interest
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For those unaware, a short squeeze candidate is a technically strong stock with a high short interest ratio. This profile means that the short sellers have been increasing their bearish bets against stocks that have been moving higher, painful for them.

Higher prices are bad for short sellers, meaning that a flood of short covering (short sellers buying the stock to cover their losing positions), driving prices even higher. Good for us, bad for them.

The market is starting to see the return of trading volume from Main Street investors, which is normal when the major indices are breaking to new highs as nobody likes to have their account sitting in cash when stocks are partying in The Street.

Short Squeeze Stock: TD Ameritrade Holding Corp. (AMTD)

Short Squeeze Stock: TD Ameritrade Holding Corp. (AMTD)
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TD Ameritrade Holding Corp. (AMTD) benefits from this, as higher trading equals better revenue. AMTD shares are trading 12% higher for the year and appear to be consolidating for a run above $35.

Such a move would get the short sellers running as more than six times the average daily volume is tied up in short positions.

Look for the break above $35 to trigger a short squeeze and get AMTD shooting higher.

Short Squeeze Stock: CH Robinson Worldwide, Inc. (CHRW)

Short Squeeze Stock: CH Robinson Worldwide, Inc. (CHRW)
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Short sellers increased their bearish bets by 23% against CH Robinson Worldwide, Inc. (CHRW) over the last two weeks, driving the short interest ratio to a whopping 9.0.

The stock is fueled by lower fuel prices as crude oil prices continue to decline.

Shares have been consolidating at $73 but appear to be ready to push higher. A break above $74 will initiate a short covering rally that is likely to drive prices toward $80 in short order.

Short Squeeze Stock: Pilgrim’s Pride Corporation (PPC)

Short Squeeze Stock: Pilgrim's Pride Corporation (PPC)
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Food companies like Pilgrim’s Pride Corporation (PPC) have been able to manage higher costs within their markets, resulting in consistent positive earnings surprises over the last two year.

The results have paid off for PPC as shares have returned 94% year-to-date.

Of course, now the shorts think it’s a lock to go down, but we don’t see it that way. The latest consolidation below $32 is a strong sign that shares are preparing to break higher, bad news for the short sellers.

With technical support residing at the $30 level, we see PPC as a great short covering candidate with a target of $40.

As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2014/11/short-interest-short-squeeze-amtd-ppc-chrw/.

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