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Greenberg: The Reverse of Short-Squeeze Giddiness

By: Herb Greenberg | 04/10/14 - 03:45 PM EDT

SAN DIEGO (TheStreet) -- I've read and watched and listened to countless market pundits (me included) pontificate about what this market decline is all about and how it will end.

I have no idea how it will end. Bulletin: Neither does anybody else. But as we watch momentum-in-reverse, as I like to call it, there's something else at work here: There don't appear to be natural buyers for many of these stocks. In fact, if I look at my screen (which I included in this tweet) some of those that have been squeezed up the most are among those hitting hardest.

Topping the list: Education Management (EDMC), off 67%. That may not be the best example, but then right below it: 3-D Systems (DDD), Conns (CONN)NeuStar (NSR)Nu Skin (NUS), Groupon (GRPN), Overstock  (OSTK) and ITT Education (ESI). Others in the top quadrant include Best Buy (BBY), Potbelly (PBPB), Twitter (TWTR), Stratasys (SSYS), Herbalife (HLF) Amazon (AMZN) and Ubiquiti (UBNT).

The list goes on and on.

Reality: As this market has been spiraling higher one of the warnings from the likes of me, my colleague Doug Kass and a bunch of others who have been laughed off the stage: When you squeeze out the shorts, you may get that pop, but beware of what you wish for because the natural buyers will be gone -- and stocks will fall in a vacuum.

-- Written by Herb Greenberg in San Diego

Follow @herbgreenberg

Herb Greenberg, editor of Herb Greenberg's Reality Check, is a contributor to CNBC. He does not own shares, short or trade shares in an individual corporate security. He can be reached at herbonthestreet@thestreet.com.

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