A Modern War Profiteer

A short squeeze accelerates a stock’s price rise as short sellers bail out to cut their losses. Because short sellers exit their positions with buy orders, the coincidental exit of these short sellers pushes prices even higher. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ February 17, 2023 |  [View Online]( |  [Sign Up]( A Modern War Profiteer “All's fair in love and war.” — English proverb , Reminder: [a “shortsqueeze” is a stock market phenomena]( that occurs when a security has a significant amount of short sellers– meaning lots of investors are betting that its price going to tank. When many investors bet against the stock, the stock starts moving higher… all the “shorts” have to cover quickly so they don’t lose their own shorts. What if you’re on the other side of the trade and you know you’re making money off the “shorts” who are getting squeezed? Is that akin to war profiteering? Should you care? Let’s take a look… A short squeeze accelerates a stock’s price rise as short sellers bail out to cut their losses. Because short sellers exit their positions with buy orders, the coincidental exit of these short sellers pushes prices even higher. It’s like a snowball, catalyzed by a bet on a stock’s downfall. POWERED BY TRADER MARKETING GROUP How The Ultra Rich Pick Their Stocks There's one tool that can scan and pick the best stocks… and could give you all the consistency you need in your trading… No matter what happens in the market. Our Pro Trader will unveil the process used every day to select trades, improve entries and exits, and find better trades than ever before. [Click here to Save Your Spot in our Free Live Training.]( CONTINUED.... Contrarian investors try to anticipate a short squeeze and buy stocks that demonstrate a strong short interest. The shortsqueeze as a phenomenon, however, proves to be a bet on the collective stupidity– for lack of a better word– of general investor sentiment.  [JC Parets is a prime example of someone who profits from permabears getting squeezed.]( Parets: When it comes to short squeezes, you just calculate how much short exposure is present relative to the amount of shares outstanding. In some cases, you have 30% of the overall float is short. Some cases you have 50, 60, 70, even 80% of the entire float is short. And what people fail to remember… it’s just math. Also, short sellers are promising to be a buyer in the future. They have no choice. You’re a short seller. You have to buy at some point in the future. Short sellers would love it to be at lower prices. But whether it is or whether it isn't, they are guaranteed future buyers. Shareholders of companies are guaranteed future sellers. So, just understand that concept. To unwind a position, you have to do the opposite. So, when you're selling short, you have to buy. You have to carry a margin requirement in order to be short of stock. The way that you short of stock is you borrow it, promising to give it back, and you pay a margin interest on that borrow. You sell it in the open market, you take the cash, and then in a perfect world, you buy it at a lower price for less money, and you keep the difference, you return the shares. That's how short selling in a perfect world works in a profitable short selling strategy. You can watch Mr Paret’s whole breakdown by clicking here. You’ll be surprised how he uses bear market sentiment to spin a profit. “We're not the only ones with the magic data,” he continues. “It's right there. It's all free information.” Parets: You can watch Mr Paret’s whole breakdown by clicking here. You’ll be surprised how he uses bear market sentiment to spin a profit. “We're not the only ones with the magic data,” he continues. “It's right there. It's all free information.” Parets: Momentum traders like us, we get involved, which causes even more shorts to squeeze, which brings in more momentum traders, which causes more margin calls. And all of that happens all at the same time, which is why you get 400% moves in a week in the worst company in the world because everybody knows that shrimp made out of soy is a dumb idea. Everybody agrees. Clearly. That's why the short interest is so high to the point where anybody who's already come to the conclusion that soy-based shrimp tastes terrible and meat made out of plants instead of a cow is a horrible idea. Everybody already agrees. Everybody's already short to the point where there's nobody left to sell. And there goes the unwind and all those shorts get squeezed. Beyond Meat can still go to zero. Bed Bath & Beyond is probably not going to be the next Amazon. But guess what? It's double twice this year and it's only February the ninth. What do you think? Is Parets a modern day profiteer? Is mode of trading cast in a negative light? [You can write to me here.](feedback@wigginsessions.com) Follow your own bliss, Addison Wiggin The Wiggin Sessions POWERED BY THUNDERCLAP RESEARCH [The 2023 Gold Portfolio [FREE]]( The new gold bull market is here. Since bottoming in August of 2018, gold has soared past $1,700 per ounce... $1,800 per ounce... 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