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Top NYSE Short Squeezes for October

These heavily shorted stocks could surge on positive news.

Editor's note: Jim Cramer will present his 2009 stock outlook for the first time at TheStreet.com Investment Conference on Saturday, Oct. 25. Limited seating. Act now.

Updated from 7:04 a.m. EDT

When you see something like the thousand-point increase in the

Dow Jones Industrial Average

on Monday, you realize that there are stocks moving up way more than normal due to short squeezes.

A short squeeze takes place when the short-sellers short-interest in a stock scramble to cover their bearish positions when that stock moves sharply upward; their buying ends up pushing shares even higher. Short positions of stocks are measured by the short-squeeze ratio, which represents the number of days it would take for the short-sellers to cover their positions based on the recent daily volume of the stock.

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Stockpickr has come up with a list of the

top New York Stock Exchange short-squeeze plays

for the month of October, including

Thomson Reuters

(TRI) - Get Thomson Reuters Corporation Report

and

Toronto Dominion

(TD) - Get Toronto-Dominion Bank Report

.

To read more,

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visit Stockpickr.com

.

At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.

James Altucher is president of

Stockpickr

LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for the

Financial Times

and the author of

Trade Like a Hedge Fund

,

Trade Like Warren Buffett

and

SuperCa$h

. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;

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