Why the GameStop Short Squeeze Might Not Be Over
Is the GameStop short squeeze over?
Many on r/WallStreetBets don’t think so. Here are the top reason the GameStop short squeeze might not be over just yet:
Bullish Sentiment is Still High
GameStop is still the most mentioned stock on r/WallStreetBets by a lot. GME made up about 50% of the subreddit’s activity over the last 24 hours, and it’s mostly positive.
Thousands of users are still looking to buy – just that alone could mean upward price movement as traders look to get back into GameStop for a second run at this short squeeze.
Short Interest is Still High
GameStop short interest is 39% as of the open this morning. While this is much lower than the 120% levels we saw last week, there are still a decent amount of shorts who would need to cover if the price shoots up again.
Also, remember that short interest was artificially driven down by the massive volume from last week. Short interest equals shares short divided by the float, meaning short interest would decrease if float increases, even if no one covered. This could mean that there are still a large amount of shorts who need to cover.
New Shorts Created This Week
Plenty of traders entered short positions over the last two days thinking that the short squeeze is over. If they end up being wrong and GME spikes again, they may have to cover, which would cause the price to spike again.
Do you think the GameStop short squeeze is over? Let us know in the comments.