"Shock and Awe" at Sears Holdings (SHLD) Short Squeeze

January 23, 2012 9:59 AM EST
The massive short-squeeze in Sears Holdings (Nasdaq: SHLD) continues.

Shares of the beleaguered retailer are up an astonishing 66% so far this year, including today's 8% jump.

The ramp is not related to a turn around at the company. In fact, it could be argued that things are worse and deteriorating.

Traders are already comparing the Sears short squeeze to the epic Volkswagen short squeeze of 2008. In fall of that year, Volkswagen increased four fold after Porsche SE's announced its plans to increase its stake in the automaker, briefly making it the most valuable company in the world. Tons of hedge funds lost their shirt in that trade.

The current short squeeze in Sears could be being orchestrated in part by friends of Sears Chairman and hedge fund manager Eddie Lampert.


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