Check out the short interest in Whiting Petroleum (WLL). (November 30, 2016)
WLL
Energy stocks really ramped today. I want to look at Whiting Petroleum ( NYSE:WLL ) here on this daily chart. This stock has so much momentum that I suspect, we don’t know for sure, but I suspect that this will blast through 14.00. This is a nice kind of a little bowl pattern here, whatever you want to call it, back up here. A volatility squeeze where the stock had been consolidating. Kind of light volume there. Then we got a little ‘whoop-de-do’ on higher volume on this rally, but that didn’t turn out to be very much. Average volume as well, and then finally today, Boom! A big blastoff on massive volume, and this is one of the big reasons why, 38 percent of the float is short.
For every two stocks that are owned the next share is short. That creates a short squeeze that, with the price of oil moving up, I think this thing can move for a while. So my suggestion is, you be long the stock, but just account for the possibility that you could get some kind of reversal. I don’t see it happening too much, but if the stock starts falling back below $11.00 on this, then you don’t want to be long the stock. That is giving it a little more room than I would prefer, but that is what happens when a stock closes 30 percent higher than the prior day. So, be long this stock. Be long some of the energy stuff, they have made big moves today, could probably get a little bit of a pullback, but ultimately I think this goes higher.
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