Recently as I am trading undervalue stocks, I notice that significant gain can be triggered by positive news on these stocks. Fundamentally strong stocks with beaten down prices and high levels of short interests can easily fall into a phenomenon called “Short Squeeze”. Short Squeezes happen when a bearish stock turns around, creating elevated prices that forces the shorts to buy to cover, which in turn takes the price even higher. In a way, it is basically a bearish “bubble”.
Since short squeeze often creates opportunities for huge gains. I decided to create a list of fundamentally strong and undervalued stocks and observe their short interest. This list would be automatically updated on a regular basis.