Market Overview

DryShips Squeeze Continues, Other Stocks Could Be Following Suit

DryShips Squeeze Continues, Other Stocks Could Be Following Suit

DryShips Inc. (NASDAQ: DRYS) shares are up another 76 percent Tuesday and are now up an incredible 1,550 percent since Election Day.

Trump’s election has sent the Baltic Dry Index surging higher. The index is up for eight consecutive days and has reached its highest level since 2014.

If the red-hot stock is being mostly driven by short covering, the stock could still have upside remaining.

According to, there are nearly 1.7 million shares of DryShips held short with 3.7 days to cover. However, considering much of the stock’s recent move is likely due to a short squeeze rather than pure fundamentals, a new batch of short sellers may soon be accumulating positions in anticipation of a regression.

Trump’s election has triggered huge short squeezes in a number of other stocks as well, including prison stocks Corecivic Inc (NYSE: CXW) and the GEO Group Inc (NYSE: GEO).

In addition, Benzinga reported on Friday about a potential Trump-related short squeeze in another shipping stock, Eagle Bulk Shipping Inc (NASDAQ: EGLE). The stock is up another 62.8 percent so far this week.

SAExploration Holdings, Inc. (NASDAQ: SAEX) and Helios and Matheson Analytics Inc (NASDAQ: HMNY) have also likely been boosted in part by short covering since the election. The stocks had significant short interest and are up 48.1 percent and 11.8 percent, respectively, since the election.

Short sellers are likely now lying in wait waiting for the perfect opportunity to capitalize on a potential opportunity in many of these post-election short squeeze stocks.


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