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One of the most powerful tradable market events is a short squeeze, so traders are always on the lookout for the next short squeeze candidate.
S3 Partners analyst Ihor Dusaniwsky just released a list of potential short squeeze stocks based on their high borrow rates and large mark-to-market losses for short sellers.
A stock borrow fee is the percentage of a stock’s value that brokers charge short sellers to borrow the stock. If the supply of shares to borrow gets low, borrow fees tend to rise.
“In my analysis I am looking at stocks with over $100 million of total short interest to include only stocks where the short covering from a squeeze can materially affect stock prices,” Dusaniwsky said.