3 Short Squeezes Just Waiting to Burst (ACN, DRI, JAH)

Short sellers came back to life in March, as bearish bets on the S&P 500’s companies increased by nearly 5%.
The increase in short interest activity is the result of an increase in volatility — unsurprisingly, some investors are getting more nervous that the recent highs are unsustainable. Given some of the short-term market indications, we can't disagree, but remember: Today’s increases in short interest represent tomorrow’s short squeezes.
 A short squeeze occurs when a highly shorted stock begins to move higher, putting pressure on the short sellers as they still have a liability to repay the shares they've borrowed. As would be expected, short interest increases when the market declines, setting up even more potential to jump into positions before the shorts start feeling the heat.
With that in mind, we are always scanning for bullish trading opportunities by finding the companies that have excessive shorting activity, despite retaining strong technical and relative strength leadership. (more)
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