Fwd: How to Profit from Squeeze Plays

---------- Forwarded message ----------
From: Rude Awakening <rude@agorafinancial.com>
Date: Fri, Jul 25, 2014 at 7:18 AM
Subject: How to Profit from Squeeze Plays
To: iammejtm@gmail.com

Bored with stocks? Think again... July 25, 2014     How to Profit from Squeeze Plays   Bored with stocks? Think again… Searching for squeezes Plus: More fun with grammar   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner Dull market boring you to death this summer? Maybe it's not the market. Maybe it's you. There's actually plenty of stock market action that could help you line your pockets right now… You just have to know where to look. I've said it before and I'll say it again -- boredom is not an excuse to bet against the market. That's the big mistake so many investors and traders are making this year. They see the S&P slowly churning near all-time highs and they dive headfirst into shorts. Just as we saw in mid-June, a quiet S&P does not mean all stocks in the market are off on summer vacation. Short squeezes are starting to pop up all over the place once again. Merger and acquisition targets, Chinese ADRs and select tech stocks are the targets this time around. While the S&P 500 stretched nearly one measly point higher Thursday to close at new all-time highs, the real action was once again under the surface. Real-estate listing sites Tulia Inc. (NYSE:TRLA) and Zillow Inc. (NASDAQ:Z) both spiked double-digits on a rumored merger. SodaStream Intl. (NASDAQ:SODA)—a stock that had been pulverized to new 52-week lows earlier this week—jumped nearly 10% on the day thanks to buyout speculation. So what do all of these stocks have in common (other than the fact that they all posted incredible gains Thursday)? They all have plenty of investors betting that prices are going to fall. Each of these companies has short interest of at least 20%. With so many investors expecting lower prices, any optimistic news can trigger a powerful short squeeze. That's how you get the huge pops we experienced yesterday—even when the market is essentially flat… These aren't the only stocks that are currently susceptible to a short squeeze. I just ran a quick screen and came up with 188 liquid stocks trading on major exchanges that have short interest of at least 20%. Of these stocks, 12 finished the trading day up at least 5%. That has to make some of the short sellers incredibly nervous. One last note: These short squeezes are great for traders—but there's no guarantee that the big, one-day moves will turn into a meaningful change in trend. Get in, get out, and book your gains. Right now, biotech looks like the best sector to search for potential squeeze candidates.         America's Next "Age of Wealth" Starts Now [must see] Let me warn you, what I'm about to share won't be pretty. But, readers that take action now (and I want you to be one of them) could change their family's wealth for generations. You see, America is ushering in a new "Age of Wealth," and I want you to be a part of it. But this wealth won't come without a little bit of hard work – and for some, a few stains on their shirt! Looking to make a life-altering fortune? And you're not afraid of a little hard work and American ingenuity? Click here for the full story.           Rude Numbers Targets, Predictions and Wild Guesses   284,000 is the jobless claims number the Labor Dept. reported yesterday. This is the fewest claims since February 2006… 15,530 is where the Nikkei closed today. The Japanese index gained more than 1% to finish the week… $1,294 marks the spot for gold futures this morning. The yellow metal has gained about $4 in early trading after suffering its largest drop of the week yesterday… $101 buys a barrel of crude today. Oil is finally calming down a bit after spiking on Middle East tensions… 1,978 is where you'll find S&P futures just before the bell. Stocks are looking to open lower to end the trading week…     Rude Trends When to Buy... When to Sell   "It was a pleasure to read your column. So many of the columns have grammatical and spelling errors, such that it encourages me to disregard the advice of someone who couldn't pass a junior high English class," writes a grateful reader. "Totally ironic, on the other hand, to read a column that talks about wasting too much time on smart phones and then, at the end, a link to follow Greg on Twitter!" To be fair, you don't need to be on your phone to use Twitter. I rarely look at the stream on my phone. Instead, I have it up in the background on my computer during the workday. It's a great way to stay connected to traders and analysts who are a lot smarter than I am… Also, I can only assume you are a newer reader. If you're looking for spelling or grammar mistakes, just wait a few days. I'm sure I can provide you with some good ones. I write the Rude on the fly every morning. That means no time for copyediting or more than one quick proofread from me before this thing hits your inbox. In fact, my many goofs have spurred some fun email exchanges in this very space. So feel free to pile on when I commit an unforgivable error. Oh, and don't forget to follow me on Twitter. It's a lot of fun—just don't tweet and drive. Or walk, for that matter. Get your nose out of your phone! [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   Is Obama Poisoning Your Family? [urgent] Is This Man a Villain or a Hero? [you decide] 6 Simple Steps to Turn $500 into a Fortune in One Year     BE SURE TO ADD dr@dailyreckoning.com to your address book.       Additional Articles & Commentary: Join the conversation! Follow us on social media:         The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here. Please read our Privacy Statement. For any further comments or concerns please email us at rude@agorafinancial.com. If you are you having trouble receiving your Rude Awakening subscription, you can ensure its arrival in your mailbox by whitelisting The Rude Awakening. © 2014 Agora Financial, LLC. 808 Saint Paul Street, Baltimore MD 21202. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security they personally recommend to our readers. 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Jeremy Tobias Matthews