Signs of a squeeze

[ironchef]

This is why I generally don't post my questions. Looking at my first post, I keep thinking "this was really badly written."
Thanks to everyone for pointing out my mistakes. I'll have more to say later, but for now let me explain what I mean by "squeeze."
For me, a squeeze refers to any situation where someone is effectively forced to buy or sell. Short squeezes fall under that definition, but are far from the only example. To give one alternative example, if someone is going to lose their property, say a house, unless they get a lot of money soon, and the only way they can get enough funds is to sell that house, they a experiencing a squeeze. They are not being "forced" to sell that house, just as in a short squeeze no one is forced to buy the asset they are shorting. But if all the alternatives are worst, they'll likely do it.

Why do you care? It is just one of hundreds of reasons why we buy and sell.

Are you looking to use it as a trading signal? I can find short interests monthly but that is not tradable for my system and when I backtested monthly short interest vs directional most of the time the correlation was not that good.

 

[themickey]

Hello, long time lurker here,

I don't normally post questions because Google is sufficient for most answers. But I've been trying to find a starting point for this for awhile, with no luck. To summarize, do any of you have any pointers for detecting a potential market squeeze (either from manipulation, misinterpretation of situations, or expected but unaccounted for changes in demand)?
To be clear, I'm not asking for current opportunities you've identified (I won't trust such tips anyway). Nor am I expecting to be spoon fed your methods. But any hints of where to look would be appreciated.

Well the only way to determine short squeeze is to determine the amount of shorts, generally as a % of issued capital and days for a short to normally unwind.
I don't believe a free list of market shorts is available in USA, there may be a list which needs to be paid for by being subscribed in USA. In Australia they have a free list for the ASX300. https://www.marketindex.com.au/short-selling
My experience, if a Co. is shorted, it's usually for a good reason.
A short squeeze rarely happens unless super good news comes out, shorts are often informed and well cashed up investor groups or traders and busting them is difficult.
You may think shorts are being squeezed but often they come back and whack the longs.
Here is a chart of a Co. which just the other day I bought and bailed out 3 days later, prior to the plunge, I lost 2.6% on my position, I smelt trouble, and I was keeping a very tight stop. Very close call from getting sizzled badly. If you refer to my short list link, it is ranked number 22 atm. The two very bearish bars prior to the plunge was the red flag which additionally promped me to bail.

 

[cornerstone]

Hello, long time lurker here,

I don't normally post questions because Google is sufficient for most answers. But I've been trying to find a starting point for this for awhile, with no luck. To summarize, do any of you have any pointers for detecting a potential market squeeze (either from manipulation, misinterpretation of situations, or expected but unaccounted for changes in demand)?
To be clear, I'm not asking for current opportunities you've identified (I won't trust such tips anyway). Nor am I expecting to be spoon fed your methods. But any hints of where to look would be appreciated.

consolidation

 

[ironchef]

Could there be a short squeeze on SENS?

With an 18.4% short interest the shorts could be quite nervous?

 

[cornerstone]

Why do you care? It is just one of hundreds of reasons why we buy and sell.

Are you looking to use it as a trading signal? I can find short interests monthly but that is not tradable for my system and when I backtested monthly short interest vs directional most of the time the correlation was not that good.

algos planned orders like those parallel lines in the chart

 

[schizo]

algos planned orders like those parallel lines in the chart

What the heck is this? It looks more like a video game from the 80s.

 

[cornerstone]

What the heck is this? It looks more like a video game from the 80s.

ha ha, indeed. it's a chart based on heat map that shows the levels of liquidity by colors

 

[murray t turtle]

Hello, long time lurker here,

I don't normally post questions because Google is sufficient for most answers. But I've been trying to find a starting point for this for awhile.... To summarize, do any of you have any pointers for detecting a potential market squeeze (either from manipulation, misinterpretation of situations, or expected but unaccounted for changes in demand)?
To be clear, I'm not asking for current opportunities you've identified (I won't trust such tips anyway). Nor am I expecting to be spoon fed your methods. But any hints of where to look would be appreciated.

%%
IT depends;
not in SOXS now but up 33% in a week,can be a clue to tighten stops OR JUST GET OUT .LOL It's above 50day moving average now. I had to edit out the word ''luck'' out of your post, no such thing as luck...............................................................................................[NOT saying its a dead cat, most tech stocks/ETFs are alive to the max + the better %% above 50 dma , anyway] Some sectors like DAL are a downtrend looking for a place to downtrend ,not dead, its got earnings + dividend .........................

 

[traider]

algos planned orders like those parallel lines in the chart

Are the parallel lines massive limit orders? What do they mean

 

[cornerstone]

yes, those are levels of high liquidity. the top one is sellers orders and the parallel ones in the middle are buyers orders, which this pattern reflects it's algo orders.