By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Live Trading NewsLive Trading NewsLive Trading News
  • Stocks
  • Forex
  • Gold
  • KNIGHTS
  • Luxury
  • Horse Racing
  • Trade Now
Search
Reading: Meme Stock Traders Target Bear Trader Favorites
Share
Live Trading NewsLive Trading News
  • Stocks
  • Forex
  • Gold
  • KNIGHTS
  • Luxury
  • Horse Racing
  • Trade Now
Search
  • Stocks
  • Forex
  • Gold
  • KNIGHTS
  • Luxury
  • Horse Racing
  • Trade Now
Follow US
© 2024 LiveTradingNews.com - All Rights Reserved.
Live Trading News > Blog > Shayne Heffernan on Investments > Education > Meme Stock Traders Target Bear Trader Favorites
Education

Meme Stock Traders Target Bear Trader Favorites

Paul Ebeling
Last updated: June 9, 2021 3:41 pm
Paul Ebeling
Share
3 Min Read
SHARE

#stocks #short #sellers #meme #bearish

$AMC $GME $CLOV $WEN $BB $WISH

“Many short sellers have exited the play, as it is not a good strategy” — Paul Ebeling

The number of US companies with short (Bearish) bets equating to at least 30% of their shares has shrunk to 18 from 43, according to data from Barclays Plc. The drop was more pronounced in dollar terms, an 80% dive to $5-B.

Part of it may be that the direction of the market remains North, but it is hard not to see the pullback as a direct reaction to the success of meme-stock raiders aiming their crowd-sourced campaigns directly at bear-trader favorites.

We note growing fear over getting squeezed by the retail-driven rally in smaller firms. Some have shifted their short book to ETFs and big companies.

The action among day traders on Reddit’s WallStreetBets forum to band together and take on professional short sellers has forged ahead this week, with ContextLogic Inc. and Wendy’s Co. becoming the latest targets.

The war started with GameStop Corp. in January, and at that time, it forced hedge funds to take money from the market at one of the fastest rates on record.

But bearish positions have since fallen dramatically, indicating a low risk of spillover, according to Barclays strategists led by Maneesh Deshpande.

This time, hedge funds appear to be in no rush to buy back shares and cover their shorts.

Last Wednesday when the Top 10 most-shorted stocks handed $4.5-B in unrealized losses to Bears, short covering among hedge funds was less than 20% the pace seen in late January, according to prime-broker data compiled by Goldman Sachs.

“The current short squeeze is more localized probably because the number of stocks with high short-interest has come down dramatically,” Goldie wrote in a note to clients. “Given the low risk of a broad contagion, we view the fallout of the recent short squeeze to be limited.”

By Barclays’s tally, short sales across the board amounted to $900-B, or 1.9% of the total market value of American equities, a sign that short sellers have not extended themselves. While the overall pool of Bearish bets has stayed roughly the same as January, those heavily shorted have fallen to less than 1% of the total from 2.8%.

“Everybody talks about whatever you do, don’t short any of these meme stocks,” said the chief market strategist for Miller Tabak + Co. said in a TV interview. “I totally agree because you can lose more than 100% of your money.”

Have a healthy day, Keep the Faith!

You Might Also Like

125 Public Companies Now Hold Bitcoin

Banking Apocalypse, Bitcoin’s Just the Beginning

Bitcoin at ATH, What Next?

InfoFi: The Latest Abomination in Crypto

Ethereum Trading Outlook

TAGGED:AMCBBbearishCLOVmemesellersshortstocks

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.

Subscribe our newsletter for latest news around the world. Let's stay updated!

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Twitter Copy Link Print
Share
By Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   
Previous Article Screenshot 192 SSENSE Looks Set to Expand Online Fashion Presence
Next Article 493 Homebuilder confidence soars to another record high Homebuilder Sentiment Running High Despite Production Bottlenecks
Buy Bitcoin

Buy Bitcoin

Latest News

Ferrari Hypersail 1 1024x682 1
Ferrari Hypersail
Ferrari Formula One Headline News Lifestyles of the RIch and Famous Living Luxury Most Popular Must Read Opinion Shayne Heffernan Shayne Heffernan Sports Top Stories July 14, 2025
Saint Francis of Assisi in Ecstasy Caravaggio c.1595
St. Francis: The Deeds You Do Today
Catholic Featured Headline News Lifestyle Lifestyles of the RIch and Famous Living Luxury Opinion Politics Shayne Heffernan July 11, 2025
Screenshot 26 6 2025 132527
Tokenization and the Future of Financial Markets
Bitcoin Blockchain DeFI Digital Assets Economy Headline News KXCO Politics USD July 11, 2025
czi0oawj8y561
Asia’s Growth Resilience Amid U.S. Tariffs
America Asia Asia Business Featured Headline News KXCO Politics USD July 10, 2025

Stay Connected

235.3kFollowersLike
69.1kFollowersFollow
11.6kFollowersPin
56.4kFollowersFollow
4.4kFollowersFollow
//

Stay informed with LiveTradingNews.com – your ultimate destination for timely and insightful updates on global markets, finance, and investment trends. Explore the latest news and analysis to empower your trading decisions.

Quick Link

  • About us
  • Advertise
  • Send us a tip!
  • Privacy Policy
  • Contact us

Top Categories

  • Knightsbridge Insights
  • Featured
  • Stocks
  • Shayne Heffernan
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Subscribe our newsletter for latest news around the world. Let's stay updated!

Live Trading NewsLive Trading News
Follow US
© 2025 LiveTradingNews - For The Traders, By The Traders – All Right Reserved By Knightsbridge Group
Welcome Back!

Sign in to your account

Register Lost your password?