Short squeeze rallies may be firing up again - watch these stocks

da-kuk

A number of highly-shorted stocks in the consumer sector rallied on Thursday morning with risk-on sentiment appearing to be back on following the FOMC meeting and as investors weed their way through the Q4 earnings season. The rally coincides with a strong day for tech and crypto moving higher once again.

Of the consumer sector stocks with short interest standing at more than 20% of total float, movers included Carvana (NYSE:CVNA) +21.11%, EVgo (EVGO) +6.05%, Wayfair (W) +3.33%, Beyond Meat (BYND) +15.97%, Blink Charging (BLNK) +4.15%, Big Lots (BIG) +6.18%, Workhorse Group (WKHS) +7.33%, Root (ROOT) +9.45%, and Nikola (NKLA) +3.75%.

Bed Bath & Beyond (BBBY) jumped 11.52% despite the retailer missing key debt payments and longtime battleground stock GameStop (GME) rose 4.05% and trades at its highest level of 2023.

Read why Seeking Alpha author Binary Tree Analytics thinks Carvana is likely to see an epic short squeeze rally. For a deeper dive into other stock with shorts squeeze potential, check out this filter of stocks with a Strong Buy Seeking Alpha Quant Rating and short interest standing at 10% or higher of total float. Add your own short squeeze rally candidate in the comments stream.

Comments

[Wafu_GME_For_LIFE]

TSLA and GME is the only way to play this market. both stocks are extremely cheap at the moment. the only way is up.

TSLA got another 50 - 100% to go by end of the year, while GME got another 200% go to. get in before its too late

[Analyst_question]

@Wafu_GME_For_LIFE if that is what you think why aren’t you all in on GME?

[pat45]

W insiders selling pop like crazy

[The Real Cavalier]

@pat45 The valuation of W is untethered to the reality of the consumer.

[Moomoo22u2]

I love everyone tossing out additional names of worthless stocks to be pumped. So lame.

[Gunne]

There can be only one=> GME.
To the moon.
Shorts. Never. Closed.

[DoctorFouad]

Check out also $SCLX a very special situation explained here:
seekingalpha.com/...

[Paulo Santos]

It's a really bad idea to try to guess short squeezes on poor investment prospects ..

[Antonio Ferlito]

my best title AYTU

[WYCO Researcher]

Because of these irrational meme traders I think we need to go back to about 60 years ago when you needed often $25k (some were even higher), which is about $250k adjusted for inflation to even open an account at a broker, except Ma Merrill was smaller -I think it was just $5k. Others were told to put their money in a bank savings account or mutual funds. I also think we need to have fixed commission fees again. This is NOT INVESTING-this is ignorant gambling.

[p.mulligan]

@WYCO Researcher I disagree, investing should be open to all and encouraged. Dollar cost averaging and regular monthly investing is one of the best ways for people to secure their financial future. So what, if a small proportion of people invest in meme stock's, a lot of money has been made and lost on meme's, it should be up to the individual. I think financial education is key, made to require investors to pass a competency test before opening a broker account will force people to learn the risks involved.

[WYCO Researcher]

@p.mulligan I disagree. I think you need to meet an accredited investor standard to open a brokerage account.

[Finici]

@p.mulligan

"...www.audubon.org/..."

While I agree with your basic premise, the idea of requiring one to 'take a test' is preposterous and creeping NannyState-ism. Whatever happened to the concept of know your customer?

All too often companies allow the new investor to make serious mistakes and should be held to a standard accordingly.

Regardless, a fool and their money is 'oft' parted. We've all been burned at one time or another by making stupid choices.

Jay

[Mr. Dirk Diggler]

$MARA

[Eformula]

are u serious omfg lol

[MktInvestor]

BLNK is also gaining attention for a hiring an investigative firm to root out naked short sellers (as GNS, HLBZ, and MULN are proceeding with).

[Michael Bryant]

@MktInvestor

$HLBZ is also an A.I. play. "Helbiz Incorporates ChatGPT, OpenAI Technology" finance.yahoo.com/...

[Maverick 2021]

Q4 Earnings season appears to be a "disaster among the Mega Cap Tech" Companies, as they all delivered "POOR" results, but the stocks rallied anyway (ie., MSFT missed, AMD guided lower Q1, etc).....

Short squeeze, January effect, name your excuse and those are the words we are hearing from analysis.....they are putting lipstick on a PIG !

Wait a few weeks for the "Hysteria" to subside with the Wall Street Market Makers. They are having their fun for now ......

We are near the "recession" given the current earnings results and the continued JOB CUTS across the board....

Hang On .....

[Michael Bryant]

@Maverick 2021

$META surprised.

[sesame60]

@Michael Bryant
Actually META earnings were not great, stock buoyed by $40B buyback announcement and reduced spending which is all Wall St. wanted to hear. Certainly not worthy of a 22% pop in stock price.

[BeCall]

@sesame60 Yah and META revenue declined for at least the third quarter in a row... it is the buy back as you say.

[alpha582]

Last year was don't fight the fed, this year will be don't fight the herd.

[TigerCub911]

Why buy these meme stocks if you can buy solid stocks who have been jumping 10-30% a day in the last few days?

[excenter]

@TigerCub911 Because of an 1163.81% gain?

[Former 80s Rockstar]

@TigerCub911 herd mentality trading and FOMO.

[MktInvestor]

@excenter Case in point, MSGM.

[alpha582]

Wow, carvana's having a really bad day today, up only a few percent.

[The Real Cavalier]

The market appears to be running through the tape just like yesterday afternoon. Its going to be an interesting last 15 minutes.

[Winnertakesall]

Rates are still going up and the apes keep throwing their bananas at cash burning stocks.

[TigerCub911]

@Winnertakesall I think rate is not the only thing that matters for stocks and market.

[Stock Scanner]

@Winnertakesall Ha ha, you're right. And even if rates stop going up, they aren't going to be at zero. I'd imagine the current bounce is like what we had in August and will quickly peter out as insiders start selling their stock.

[HootieTreads]

The only one you need to long is $SI the rest are just squeezing animal spirits style. Maybe $BIG but its sort of like the $GME distraction where they start pumping AMC/BBY/DDS etc.

[Michael Bryant]

@HootieTreads

Agree with $SI. $BTC-USD will likely go much higher, meaning $SI should survive. But $MSTR and $MARA seem better plays. And what's up with $CIFR? It is up over 300% in the last month.

[kbaba]

$cei învestors keep hoping for a squeeze but ongoing dilution from convertible preferred shares could dilute into any volume
Camber kinda takes the cake. split adjusted price per share from 2011 was over 2 billion dollars a share. Literally!

Shorted for good reasons

[Turk Malloy]

Carvana has a great opportunity to sell more of its company to provide liquidity for a few more qtrs. Please, for the love of God, Just do it!

It will keep this saga going and give great opportunities to make more $$$

[iconstockkilledme]

@Turk Malloy This is the most interesting piece of the puzzle to me- all these companies with 0 inherent value being able to extract a ton of money from the equity markets- surely can't be a good thing for the long term health of the nation. Having said that- if S&P goes to 5500-6000 area as I'm expecting... there is no reason CVNA can't hit 500-800 dollars per share. Nothing is connected to anything tangible anymore whether it's CVNA, the S&P, bitcoin, etc. Just a concept. However, I don't relish the thought of monthly food budgets for a family of 4 going up 1000% in the next few years.

[nifong]

@iconstockkilledme I as long as people do not materially feel the consequences of this malinvestment, their appetite for it can continue. I think they won't feel it until there are literal shortages of food and the power doesn't stay on. California will likely be the first.

[Turk Malloy]

@iconstockkilledme 5500 huh ? what is the time frame ? SnP is already more expensive th as n average. Rates will be higher for longer. And the debt issues r starting to rear its head.