Concerns over short interest in stocks drying up has retail investors wondering if the party is over.
Three times now, GameStop Corp. (GME) stock has experienced a meteoric rise and fall after retail investors bought up shares of the heavily shorted video game retailer and caused short squeezes.
But as GME begins to sell off once more, many are wondering if we’ll see another spike in the stock that started the short squeeze mania.
Hedge funds and institutions with huge short positions have lost billions since late January as their positions came under fire from retail investors that have made a fortune by coordinating massive buying sprees of those shorted stocks.
But now there’s a new twist in this saga – one that could threaten the ability of retail traders to generate the same kind of huge spikes that they used to…
Where’s the money?
It seems that those hunting short positions are becoming a victim of their own success, as short interest is declining in stocks across the market.
GameStop is a great example – falling from 140% of its shares being shorted at its highest to less than 20% now.
But it’s not just the “meme” stocks that aren’t attracting the same level of short sellers anymore. Short interest in U.S. stocks has declined from 3.4% at the end of 2020 to 2.95% at the present.
After losing billions to the short squeeze craze, it’s not surprising that the biggest short sellers on Wall Street would wind down their positions to decrease their exposure.
And that’s left many wondering if the party is over for those seeking huge gains from targeting heavily shorted stocks.
Well, in my opinion, we’ve only just begun.
How do I get some?
I think that the short squeeze game is still on.
And it seems that every day the stock market goes down, we see a big influx of buyers in GME and other short squeeze names.
Heavily shorted stocks almost seem to have become a hedge against the stock market.
Shorts positions may be lower at the moment, but they are far from gone. Traders simply need to recognize that repeatedly buying the same names isn’t going to continue to deliver the same level of profits.
I’ve got my eye on several sectors that remain heavily shorted, like Technology, Real Estate, Healthcare, and more.
My favorite name in the space is The Macerich Company (MAC) – a Real Estate Investment Trust (REIT) that focuses on the development of shopping malls in the U.S.
MAC currently has more than 23% of its shares shorted and has sold off a ton in recent years with the growing popularity of ecommerce and the difficulties posed by the pandemic.
With those factors combined, even a moderate amount of buying could spell big profits.
And that’s only one of dozens of short squeeze opportunities I’ve got my eye on…
How to Stay Ahead of the Hedge Funds
The short squeeze trend is alive and well, but traders will need to be more informed than ever in order to keep pulling off big wins against Wall street’s biggest institutions.
To help level the playing field, I’ve fine-tuned the incredible power of my S.C.A.N. system to help me identify the moment when money begins flowing into the most heavily shorted stocks in the market.
To see exactly how my system works and the kind of mind-blowing profits my research and recommendations can show Super Squeeze Profits subscribers how to achieve, click here.
In the Spotlight: Competition is Heating Up in the EV Space…
One of the world’s largest automakers is throwing down the gauntlet against the biggest names in the electric vehicle niche.
On Monday, Volkswagen (VWAGY) announced that it will begin developing its own solid-state batteries to compete with electric vehicle giants like Tesla (TSLA).
And the German automaker has claimed to be on the cusp of a “quantum leap” in battery technology.
Volkswagen plans to have established six “gigafactories” to produce its batteries by 2030.
This shift in Volkswagen’s EV plans could have huge ramifications for the industry. This is a space I am closely following, and I will be sure to pass along the most important developments as they happen, right here in Profit Pregame.