WINDERMERE, Fla. ( Stockpickr) -- News events have the power to create massive volatility in the market, and one thing that can move stocks substantially higher or lower is an earnings release. Take that one step further and combine a bullish earnings report with a stock that's heavily shorted, and you have the fuel that can ignite a large short squeeze in any stock.Short-sellers hate being caught short a stock that announces bullish earning and forward guidance. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions and avoid huge losses. Even the most skilled short-sellers know that it's never a great idea to stay short once a big short-covering rally starts that's sparked by an earnings event.
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