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TheStreet Open House

5 Stocks Gearing Up for Monster Short Squeezes

DELAFIELD, Wis. (Stockpickr) -- This stock market is a short-seller's worst nightmare.

I have watched the bears come after stock after stock and continue to get squeezed out of their positions. Those squeezes are happening with little mercy for the shorts. That latest example was heavily-shorted e-commerce player Zulily (ZU), which exploded higher on Thursday by 18% to $72.75 a share after a breakout fourth-quarter earnings report. This stock has absolutely destroyed the shorts since it came public around $40 last November and is now trading in new all-time-high territory.

>>5 Stocks Under $10 Setting Up to Soar Higher

Another name that continues to take it to the shorts is Criteo (CRTO), which I flagged in Feb. 14's "5 Hated Stocks That Could Get Squeezed Much Higher" at around $43 per share. I mentioned in that piece that shares of CRTO sported a very high short interest of 14.4% and an extremely low float of just 14 million shares. This stock has done nothing but rip higher since then, with the stock printing a new all-time high on Thursday of $51.15 a share. That's practically a gain of 20% in a week for anyone who bought into this squeeze.

Since this market remains in the control of the bulls, I will continue to run my scans for equities that are loved by the short-sellers. These names could be the next candidates to put a thumping on the bears like we've seen this year with Zulily, Tesla Motors (TSLA) and GT Advanced Technologies (GTAT). Believe me, hedge funds are doing the exact same thing because they know that heavily-shorted stocks are a target-rich hunting ground for the next monster movers.

>>4 Big-Volume Stocks to Trade for Breakouts

With that in mind, here's a look at five stocks that could be setting up for monster short squeezes soon.

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