short squeeze

After Settling Fears About Liquidity, Sears Skyrockets

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Looks like a lot of shorts are feeling the burn of a squeeze this morning as SHLD is up over 20% intraday.  Reuters reported that Sears Holdings still has “substantial liquidity and strong assets” despite their obvious need to improve their operating performance and location strategy.  However the retail chain is expected to generate $270 million in assets from real estate deals and another $400 to $500 million from rights offerings. From Reuters: “The rights will entitle stockholders to purchase shares in the combined Sears Hometown and Outlet Stores businesses and certain hardware stores and will be transferred to holders … Read more

Differentiating Between An Irrational Market Or Strong Bull Market Trend?

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Guest post by: Kirk Differentiating Between An Irrational Market Or Strong Bull Market Trend? These past two weeks have been tough as an options trader. Differentiating between trading an a possibly irrational market or bull market trend is sometimes very difficult to assess. We all know that the stock market can push us to extremes and then, just when we “give up” and “give in” the turn happens. Timing is really everything. Blow-off Top or Pull-Back? Most traders I talk to are in one of two schools of thought right now. Either you think this is the best shorting opportunity for the … Read more