Shake Shack (SHAK) broke out to yet another all-time high yesterday. The stock has only been trading for two and a half months, so "all-time high" might be a bit dramatic. Still, the stock blasted through Tuesday's closing high of $60 on the third heaviest trading day since it began trading on January 30.
Here's the daily chart, which shows a parabolic move that began on Monday at $50.
This stock has trapped a lot of short sellers, with about 34% of the float being short as of March 31. That was then...but this is now.
The stock is in a massive short squeeze that just might have further to go. Here's a look at the intraday chart from yesterday:
You can see that the price actually peaked about an hour into trading and then sold off into the early afternoon. But after hitting a low at 1:00pm, Shake Shack began trading higher into the close.
Here's the trade. If SHAK starts pushing through $62.75 today, you know that short sellers are scrambling to cover, and will likely push the stock up much higher. This stock isn't trading on fundamentals -- it's trading on pure panic. As I write this, I have no position. But if the stock starts breaking above $62.75, I'll be buying.
SHAK has been trading in wild swings this week. This is a contact sport, so wear a cup.