Smoking Securities

Half Baked High Finance

Posts Tagged ‘Short Squeeze

New High Short Squeeze ($PCLN)

leave a comment » has been a winner since breaking past 119 on July 20th, subsequently rising 25% in less than a month. As a stock making new highs with a large percentage of the stock short, the squeeze has been a thing of beauty as PCLN flies past 2008 levels.

Trading in an uptrend above a rising upper Bollinger is an indication that the online reservation business is strong, and that the market expects continued prosperity in this sector. At the risk of sounding like a paid endorsement, I use Priceline’s hotel room bidding service to find great deals on four star hotels, often 30-50% cheaper than advertised rates.

A break below 133.2 would start a secondary downtrend, suggesting profit taking, but PCLN looks like a great investment in a well branded company so long as it can stay above 99.2. In a perfect world, a pullback to the 120’s before resuming the upward path would provide a great entry point, but only time will tell.


Written by chucklesamadeus

August 11, 2009 at 12:15 am

New High Short Squeeze ($WFMI)

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WFMI090804I posted a tweet about Whole Foods awhile ago, suggesting it was a strong candidate for technical reasons with a solid brand name to boot. @NoDoji agreed, and today that cat tweeted a call to load up on WFMI before earnings.

Much of WFMI stock has been sold short, so Tuesday’s earnings report may precipitate a covering frenzy. Looking at the after hours market, WFMI has risen $3.40, up over 13%. CHA-CHING!

Technically Whole Foods remains strong, breaking out on July 20th and trading in an uptrend above a rising upper Bollinger. The price target is 32.04, but I treat this number as a guide, and not a profit taking marker.

Written by chucklesamadeus

August 4, 2009 at 6:34 pm

New High Short Squeeze ($STEC)

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STEC090716I am savagely raping short bears with STEC, turning their lifeless pelts into vast rugs, and placing them in front of my burning hearth where I’m roasting Dennis Kneale. Stocks like these look poised to make a killing as many continue to burn themselves by adding more fuel to these rockets with more shorts.

By the same token, STEC is looking pretty asymptotic, and it doesn’t help that the only visible support is around 20.37. Personally, I’d love to see a consolidation, a bit of pullback for some breathing time, otherwise I’ll probably shit the bed and jump out too early.

VistaPrint (VPRT), O’Reilly Automotive (ORLY) and P.F. Chang’s China Bistro (PFCB) share similar technical traits with STEC, GMCR and PALM, so I’m holding these names as the market continues to rise. The collapse of CIT may continue to add pressure to the market, but the bulls remain in charge, so don’t get gored.

Written by chucklesamadeus

July 17, 2009 at 12:01 am

New High Short Squeeze ($ORLY)

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ORLY090715O’Reilly Automotive is making new highs and carries a large short position, making it a ripe choice for investment in a rising market. By all headline accounts the car industry is dead, but it seems ORLY and AutoNation are holding up well.

ORLY provides aftermarket car parts, tools and accessories, so perhaps the DIY attitude that recessions foster will boost their bottom line. Whatever the fundamental reason may be, it won’t be known for another 6-8 months from now, and thus there is no use trying to theorize without facts.

So long as ORLY holds 34.37, the stock looks prepared to go gangbusters. The market has resumed an uptrend on many of my indicators, so I have initiated a position. Other stocks with similar properties in my portfolio include GMCR and STEC, along with INTC and TBT to name a few.

Written by chucklesamadeus

July 15, 2009 at 9:59 pm

New High Short Squeeze ($LINC)

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LINC090701Lincoln Education Services has appeared on my favorite screen in the past week, and I noticed a video via @IBDInvestors on StockTwits, so I figured I’d throw in my two cents.

Clearly education companies do well when people are scared and unemployed, so Wall Street has high expectations for the stock. With a float +20% short, a squeeze may develop as sellers scramble to cover at increasingly higher prices.

LINC looks like a strong investment so long as it stays above 18.89.  Other companies that have recently exhibited this pattern are GMCR, STEC and PALM, all of which appeared on the aforementioned screen.

Written by chucklesamadeus

July 1, 2009 at 2:25 pm