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You know, I might get tired of saying this… if we didn't end up with outrageous profits every time I did.
When I'm looking for a bullish, long-side move that absolutely needs to be fast, aggressive, and right (FAR), I love to see high short interest.
"Short sellers are usually a bull's best friend" is high up there on my "10 Commandments of Trading"
Why? Because when shorting above a certain threshold, it usually provides the catalyst for strong rallies that keep burning higher.
Bad news for the bears: These rallies can absolutely demolish the shorts as they scramble to "cover" their suddenly losing positions.
But if you're long at just the right moment before the "short squeeze" kicks off, you're in position for some extreme upside.
That's what's happening today: A huge crowd of bearish traders has piled into a couple of stocks to try and ride them lower.
As you're about to see, they are about to have a rough ride. But we are set to make a killing…
About the Author
Chris Johnson is a quant - he's obsessed with building and perfecting mathematical models that allow him to predict, with startling accuracy, the direction of the markets, entire sectors, and individual securities. For the last year, he's been researching and building a new system that lets him move swiftly in and out of the hottest stocks in the market for life-changing gains - entirely on his own terms. The results of his newly-minted Night Trader system are nothing short of amazing.
Chris also contributes to Money Morning as the Quant Analysis Specialist.