Thread: Short Squeeze

Daily Market Commentary for September 19, 2008 from Millennium-Traders.Com

Another shoe dropped on Wall Street today as Secretary Treasury Henry Paulson announced a ban on short-selling 799 stocks in the financial sector until October 2. (read more)

At the NYSE closing bell on the New York Stock Exchange, here is how the major world indices and major U.S. stock indices ended the session on the world market as well as the emerging markets including the stock market closing bell price:
DOW (Dow Jones Industrial Average) triple digit gain of 368.75 points on the day to end the trading session at 11,388.44
NYSE (New York Stock Exchange) triple digit gain of 406.84 points to end the trading session at 8,182.00
NASDAQ gain of 74.80 points to end the trading session at 2,273.90
S&P 500 gain of 48.10 points to end the trading session at 1,254.61
FTSE All-World excluding U.S. gain of 12.39 points to end the trading session at 209.69
FTSE RAFI 1000 triple digit gain of 209.19 points to end the trading session at 5,022.52
BEL 20 (BEL20) triple digit gain of 268.92 points to end the trading session at 3,052.83
CAC 40 (CAC40) triple digit gain of 367.01 points to end the trading session at 4,324.87
FTSE100 (UKX100) triple digit gain of 431.30 points to end the trading session at 5,311.30
NIKKEI 225 (NIK/O) triple digit gain of 431.56 points to end the trading session at 11,920.86

New York Stock Exchange (NYSE) stock market indicators for the day:
Advanced stock prices 2,857; declined stock prices 411; unchanged stock prices 27; stock prices hitting new highs 1 and stock prices hitting new lows n/a. NYSE quotes for volatile stocks and market trends, as well as stock quotes, stock prices and stock symbols of Day Trading Stock Picks on the New York Stock Exchange stock market for Day Trading online and active Day Trading for those who are or would like to be Day Trading for a living: Ensco International Incorporated (NYSE: ESV) stock price gained 2.34 points on the trading session, high on the trading session $69.82, low on the trading session $58.76 with a closing stock price at $60.75; ******* Natural Resources Company (NYSE: PXD) stock price gained 3.80 points on the trading session, high on the trading session $54.27, low on the trading session $51.48 with a closing stock price at $53.87; IHS Incorporated (NYSE: IHS) stock price shed 10.90 points on the trading session, high on the trading session $59.95 low on the trading session $45.66 with a closing stock price at $49.60; Deutsche Bank AG (NYSE: DB) stock price gained 0.39 points on the trading session, high on the trading session $90.00, low on the trading session $81.96 with a closing stock price at $84.25; Devon Energy Corporation (NYSE: DVN) stock price gained 7.46 points on the trading session, high on the trading session $110.81, low on the trading session $99.82 with a closing stock price at $105.50; Goldman Sachs Group Incorporated (NYSE: GS) stock price gained 21.50 points on the trading session, high on the trading session $144.98, low on the trading session $115.50 with a closing stock price at $129.80; Morgan Stanley (NYSE: MS) stock price gained 4.66 points on the trading session, high on the trading session $33.86, low on the trading session $24.80 with a closing stock price at $27.21; Ultrashort Financial Corporation (NYSE: SKF) stock price shed 15.85 points on the trading session, high on the trading session $102.90, low on the trading session $87.00 with a closing stock price at $99.58; Walter Industries Incorporated (NYSE: WLT) stock price gained 5.12 points on the trading session, high on the trading session $70.41, low on the trading session $61.63 with a closing stock price at $66.84.

National Association of Securities Dealers Automated Quotations (NASDAQ) stock market indicators today:
Advanced stock prices 2,310; declined stock prices 658; unchanged stock prices 109; stock prices hitting new highs 209; stock prices hitting new lows 123. NASDAQ quotes, volatile stocks and market trends, as well as stock quotes, stock prices and stock symbols of Day Trading Stock Picks on the NASDAQ stock market for Day Trading online and active Day Trading for those who are or would like to be Day Trading for a living: **** Incorporated (NasdaqGS: ****) stock price shed 0.62 points on the trading session, high on the trading session $8.55 low on the trading session $7.42 with a closing stock price at $7.87; Cintas Corporation (NasdaqGS: CTAS) stock price shed 1.66 points on the trading session, high on the trading session $32.13, low on the trading session $29.72 with a closing stock price at $30.05; Zions Bancorporation (NasdaqGS: ZION) stock price gained 4.28 points on the trading session, high on the trading session $107.59, low on the trading session $38.76 with a closing stock price at $49.51; Ctrip.com International Limited (NasdaqGS: CTRP) stock price shed 5.31 points on the trading session, high on the trading session $50.50, low on the trading session $44.00 with a closing stock price at $45.18.

Market trends on the American Stock Exchange (AMEX) and stock market indicators for today:
Advanced stock prices 932; declined stock prices 317; unchanged stock prices 41; stock prices hitting new highs n/a; stock prices hitting new lows 1.

Chicago Board of Trade Futures Market activity for the day, at time of this posting for December 2008 Contracts:
E-mini S&P 500 (ES) end of day price 1,250.50 change 47.25
E-mini NASDAQ-100 (NQ) end of day price 1,739.25, change 30.75
E-mini S&P SmallCap 600 (SMP) end of day price 397.50, change 16.50
$5 DJIA (YM) end of day price 11,379 change 394

World Currencies for the Forex Market, for Forex Trading by active Forex Traders, at time of this posting:
Euro 0.6908 to U.S. Dollars 1.4477
Japanese Yen 107.250 to U.S. Dollars 0.0093
British Pound 0.5449 to U.S. Dollars 1.8203
Canadian Dollar 1.0590 to U.S. Dollars 0.8351
Swiss Franc 1.1026 to U.S. Dollars 0.9069

Commodity Markets:
Energy Sector: Light Crude (NYMEX: NYM) gained $6.67 on the day for a closing price of $104.55 a barrel ($US per barrel)
Heating Oil (NYMEX: NYM) gained $0.11 on the day for a closing price of $2.92 a gallon ($US per gallon)
Natural Gas (NYMEX: NYM) shed $0.08 on the day for a closing price of $7.85 per million BTU ($US per mmbtu.)
Unleaded Gas (NYMEX: NYM) gained $0.12 on the day for a closing price of $2.60 a gallon ($US per gallon)

Metals Markets:
Gold Market Price (COMEX: CMX) shed $32.30 on the day for a closing price of $864.70 ($US per Troy ounce)
Silver (COMEX: CMX) shed $0.23 on the day for a closing price of $12.48 ($US per Troy ounce)
Platinum (NYMEX: NYM) gained $9.40 on the day for a closing price of $1,147.00 ($US per Troy ounce)
Copper (COMEX: CMX) gained $0.11 on the day for a closing price of $3.18 ($US per pound)

Livestock and Meat Markets (cents per lb.):
Lean Hogs (Chicago Mercantile Exchange: CME) gained 0.38 on the day for a closing price of 68.20
Pork Bellies (Chicago Mercantile Exchange: CME) gained 2.70 on the day for a closing price of 91.00
Live Cattle (Chicago Mercantile Exchange: CME) gained 1.53 on the day for a closing price of 103.25
Feeder Cattle (Chicago Mercantile Exchange: CME) gained 1.48 on the day for a closing price of 105.30

Other Commodities (cents per bushel):
Corn (Chicago Board of Trade: CBT) gained 15.00 on the day for a closing price of 542.25
Soybeans (Chicago Board of Trade: CBT) gained 27.50 on the day for a closing price of 1,143.50

Bond Market:
2 year bond shed 30/32 on the day for a closing price of 100 12/32 with a Yield of 2.16, Yield Change 0.48
5 year bond shed 1 24/32 on the day for a closing price of 100 19/32 with a Yield of 2.99, Yield Change 0.38
10 year bond shed 2 on the day for a closing price of 101 25/32 with a Yield of 3.78, Yield Change 0.24
30 year bond shed 3 10/32 on the day for a closing price of 101 31/32 with a Yield of 4.38, Yield Change 0.20

At the close of the week, performance results for our Moderators:

Stocks Trading Room:
Jeannie $11,478
Barry $21,766
Sam $14,740

Futures Trading Room:
JT $7,409.75

Forex Trading Room:
JT $15,450

Daily Swing Trades:
Barry $7,980

Weekly Swing Trades:
Jeannie $3,050

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Thanks for reading
Millennium-Traders.Com

Short squeezes occur more often in smaller cap stocks with small floats.

If a stock starts to rise rapidly, the trend may continue to escalate because the short sellers will likely want out. For example, say a stock rises 15% in one day, those with short positions may be forced to liquidate and cover their position by purchasing the stock. If enough short sellers buy back the stock, the price is pushed even higher.

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jackspar.

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