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5 Techs That Are Short-Squeeze Candidates

NEW YORK ( TheStreet) -- Markets have a 76% probability of rising in December because of the "Santa Claus rally" effect, and that could lead to a rise in a few technology stocks with high short ratios.

According to Birinyi Associates, since 1990 the S&P 500 has risen an average 2.2% from Black Friday to the end of the year. That could be a benefit to owners of technology stocks with high short positions as shorts are forced to cover their positions.

A short squeeze takes place when a stock that has a high short position sees the shorts start to cover their shares and buy them back. As this scenario plays out, more shorts start to cover and the share price continues to climb.

The short-to-cover ratio indicates how many days based on average daily volume it would take all of the shorts to cover their shares and buy them back.

There are several scenarios for a short squeeze, including the year-end melt up across the major indices. There are also issue-specific reasons, including earnings, a new product, management changes, or positive analyst coverage.

Here are five technology stocks with very high short interest.

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