Key Points
Overall MarketAfter The Fed's Beige Book Confirmed A Moderate Economic Growth Rate In April and May, the Stock Market Indices Moved Upward  The stock market indices finished Wednesday in the green. Most investors were busy watching AMC Entertainment's (AMC) doubling action from $30 per share on June 1st to more than $60 per share in the after-hours trading session. For full transparency, I have invested in AMC at $15 per share just for fun. It's quite fun to follow the action. On less crazy news, the Fed released its so-called Beige Book, which confirmed that the economy is growing at a moderate rate. A moderate growth rate was welcomed by investors sending the indices into the green zone. If you are not familiar with it, the Beige Book comes out eight times each year. It's the result of all Fed's districts' information gathering from banks, financial institutions, economists, and businesses about the state of the economy. What's Up?The Short Squeeze Is Back as AMC, PetMed Express, Bed, Bath and Beyond, and Workhorse Stocks Rallied Unanimously Looking at the most viewed Stock Cards, today, it's been a short squeeze day. I already told you about AMC Entertainment's (AMC) 111% jump. PetMed Express (PETS), Bed, Bath and Beyond (BBBY), and Workhorse Group (WKHS) are also in the same boat. What all these stocks have in common is a large short interest. A large short interest means a significant portion of shares available for trading is shorted by people who have bet against the company. If, for any reason, the stock price rallies, all those who shorted the stock have to buy the shares at a higher price to cover their shorts. Consecutively, there is a sudden surge in demand, hence another price rally. By the way, on any Stock Card, if you click on the "Sentiment" gauge, you get the short interest percentage. A Short Squeeze WatchlistThe Short Squeeze Continues as More Investors Embrace the Risky Strategy to Make Some Money Rapidly Some of your fellow Stock Cardians have a quite interesting way to use short interest to create a watchlist. Let me show you how: Go to the Screener page under Tool. Start a new filter, and scroll down to click companies with Bearish short interest. This filter gives you the companies with high Short Interest rates that may be possible targets for a short squeeze. Let me add a few other filters, such as small and mid-size market capitalization and negative sentiment, that I think could narrow the list further and save this as a Short Squeeze Watchlist. Click here to get the list if you are interested in following a risky, more-gable-like short squeeze strategy. Want to receive this daily stock market recap report in your mailbox?Comments are closed.
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