If There’s Liquidity It’s Not A Short Squeeze

I’m seeing a lot of articles (e.g., here) warning about a possible short squeeze in volatility.  At the risk of being a curmudgeon, it appears to me that people don’t know what a short squeeze is. Sure, if you’re short something that starts going up rapidly (e.g., Achman with Herbalife), life is not good. There’s a positive feedback loop when people closing out their short positions have …

Read moreIf There’s Liquidity It’s Not A Short Squeeze

Can a Short Squeeze Collapse an ETF?

Some people have been hyperventilating about the high short interest many ETFs are showing.   XRT for example recently had 95 million shares in short interest with only 17 million shares in shares outstanding.    If you want a detailed response to these fearmongers I found this article to be very helpful. If all of the people that were short XRT decided that they wanted …

Read moreCan a Short Squeeze Collapse an ETF?