Publish date:

Top Short-Squeeze Plays

These heavily shorted stocks could surge on good news.

Updated from 7:02 a.m. EDT

One of the best times to invest in short-squeeze plays is after sharp drops in the stock market, similar to what we've seen over the last several days.

A short squeeze takes place when a stock's short-sellers 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.

Stockpickr has come up with a list of the

top New York Stock Exchange short-squeeze plays

for the month of September, including

Thor Industries

(THO) - Get Thor Industries, Inc. Report



(TPX) - Get Tempur Sealy International Inc Report


To read more, please click here.

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

TheStreet Recommends

James Altucher is president of


LLC, a wholly owned subsidiary of 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



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

click here

to send him an email. has a revenue-sharing relationship with Trader's Library under which it receives a portion of the revenue from purchases by customers directed there from