Don’t bet against short sellers in this market, Jim Cramer warns

Don’t bet against short sellers in this market, Jim Cramer warns


CNBC’s Jim Cramer on Tuesday warned investors to avoid buying money-losing stocks in a bet against short sellers.

The market went in favor of short-sellers on Tuesday after the major indices fell. The market teetered earlier in the day as it digested disappointing financial reports from companies and prepared for key inflation numbers later this week.

“In a market that’s presenting you with ample opportunities to lose money, I can’t endorse buying these money-losing stocks in the hope of engineering a short squeeze. Sooner or later, you end up with a day like today where that tactic just blows up in your face,” the “Mad Money” host said.

Here are the stocks Cramer referred to:

  1. Bed Bath & Beyond
  2. Upstart
  3. AMC
  4. Beyond Meat
  5. Wayfair
  6. GameStop

More investors appear to be trying their luck with short-selling. The GS Most Short Index, which measures stocks that investors are shorting, or betting against, rose more than 18% over the last five days. It’s currently at its highest level since last January, when the meme stock craze was at its peak.

Cramer warned investors that this action is making money-losing stocks look deceptively attractive as long-term plays.

“When good things happen to bad stocks, I get nervous. We’ve seen a lot of low quality stocks rallying purely because too many hedge funds shorted them at the same time and those shorts ended up getting squeezed,” he said.



Source

Here are the retailers raising prices as Trump tariffs take hold
Business

Here are the retailers raising prices as Trump tariffs take hold

A person picks out clothing in a store as retailers compete to attract shoppers and try to maintain margins on Black Friday, one of the busiest shopping days of the year, at Woodbury Common Premium Outlets in Central Valley, New York, U.S. November 24, 2023.  Vincent Alban | Reuters Consumers who hoped tariffs would not […]

Read More
This is why Jamie Dimon is so gloomy on the economy
Business

This is why Jamie Dimon is so gloomy on the economy

Jamie Dimon, CEO of JPMorgan Chase, testifies during the Senate Banking, Housing and Urban Affairs Committee hearing titled Annual Oversight of Wall Street Firms, in the Hart Building on Dec. 6, 2023. Tom Williams | Cq-roll Call, Inc. | Getty Images The more Jamie Dimon worries, the better his bank seems to do. As JPMorgan […]

Read More
Summer rentals in the Hamptons are down 30%
Business

Summer rentals in the Hamptons are down 30%

Key Points Summer rentals in the Hamptons are down 30% from the same period in previous years, according to Judi Desiderio of William Raveis Real Estate. Brokers who focus on ultra-high-end rentals are seeing an even bigger drop and say their rental business is down between 50% and 75%. Some renters may be holding out […]

Read More