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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 highly regarded equity and options analyst who has spent much of his nearly 30-year market career designing and interpreting complex models to help investment firms transform millions of data points into impressive gains for clients.
At heart Chris is a quant - like the "rocket scientists" of investing - with a specialty in applying advanced mathematics like stochastic calculus, linear algebra, differential equations, and statistics to Wall Street's data-rich environment.
He began building his proprietary models in 1998, analyzing about 2,000 records per day. Today, that database, which Chris designed and coded from scratch, analyzes a staggering 700,000 records per day. It's the secret behind his track record.
Chris holds degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before taking on the role of Director of Quantitative Analysis at a big-name equity and options research firm for eight years. He recently served as Director of Research of a Cleveland-based investment firm responsible for hundreds of millions in AUM. He is also the Founder/CIO of ETF Advisory Research Partners since 2007, noted for its groundbreaking work in Behavioral Valuation systems. Their research is widely read by leaders in the RIA business.
Chris is ranked in the top 99.3% of financial bloggers and top 98.6% of overall experts by TipRanks, the track record registry of financial analysts dating back to January 2009.
He is a frequent commentator on financial markets for CNBC, Fox, Bloomberg TV, and CBS Radio and has been featured in Barron's, USA Today, Newsweek, and The Wall Street Journal, and numerous books.
Today, Chris is the editor of Night Trader and Penny Hawk. He also contributes to Money Morning as the Quant Analysis Specialist.
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