To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

A webcast presentation by Brian Shannon, CMT originally held on October 8th, 2014 as part of the CMT Association’s Educational Web Series.

Short sellers aren’t stupid but like anyone, their thesis may be wrong about their bearish position and that can create dynamic trading opportunities.  Brian will discuss short selling in general with strategies and tips to avoid getting squeezed and then move on to finding short squeeze candidates.

The discussion will include historical and current examples of stocks with the potential to be squeezed.  We will explore the difference between a “knee jerksqueeze” and a “structural squeeze” and risk management techniques.  Technical tools such as Short Interest Ratio (aka days to cover), % float shortand volume by price will be discussed as well as (and more importantly) the psychology of when and why squeezes occur.