1. Short Interest Ratio: It is generally believed that when the short interest ratio (i.e. the percentage of short stocks to the outstanding stocks) exceeds 10%, the stock is more likely to experience short squeeze. The current short interest ratio of FFIE is 6.8%, which while not particularly high, could still lead to squeeze under specific market conditions. (https://app.ortex.com/s/Nasdaq/FFIE/short-interest#:~:text=URL%3A%20https%3A%2F%2Fapp.ortex.com%2Fs%2FNasdaq%2FFFIE%2Fshort,100)
3. Market Sentiment and Retail Investors Enthusiasm: Strong market sentiment and retail investor enthusiasm can drive the stock price sharply higher, forcing short sellers to cover their positions and further driving up the stock price. FFIE has already attracted a large number of retail investors' attention, increasing the possibility of short squeeze. (https://www.benzinga.com/short-sellers/24/05/38900146/decoding-the-ffie-surge-insability-faraday-futures-nasdaq-rally).
4. Trigger Events: Any event that causes the stock price to rise rapidly, such as positive company news, overall market rebound, etc., will exacerbate the pressure for short sellers to cover their positions, triggering short squeeze.
Though there is no fixed short volume that can directly predict a squeeze event, in the case of FFIE, if the short interest ratio continues to rise above 10%, combined with sustained market sentiment and retail investor enthusiasm, the likelihood of a squeeze event will significantly increase. Rational investment 😄
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