Tracking Short Volume To Anticipate A Short Squeeze

Updated: Jul 3, 2021

We were all witnesses to the massive GameStop (GME) short squeeze that took place in January - February. In this scenario, hedge funds had underestimated retail trader demand for GME shares; traders from all over the world bought shares in spectacular numbers which drove GME's share price to a high of $483. Ever since that event, market participants have been looking for yet another short squeeze opportunity.

There are two websites that can help you anticipate when a short squeeze might occur, some data figures are available for free and other figures are available for a paid subscription. Everyone in the market has to have some type of strategy or "edge" if they hope to be successful over the long term. Looking for short squeeze opportunities may or may not be your strategy but here are the tools that may help identify those opportunities:

The first site (Short Volume) will help you track daily short volume alongside total trading volume. It will also provide you with a short volume ratio and a short interest ratio which you can track over time. The second site (Short Squeeze) will help you track the amount of floating shares and the total number of shares sold short which results in a "short percent of float". The short percent of float is an important figure in identifying a potential short squeeze opportunity, during the GME short squeeze the short percent of float was above above 100%.

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