President Trump’s victory in the 2024 presidential election will bring about changes, and possibly reversals, of public and governmental policies in 2025. One of the primary targets will be the Inflation Reduction Act and the subsidies for green energy and its infrastructure, according to S3 Partners.
Meanwhile, Trump Media and Technology Group (DJT) stock has surged 38% with volatility expected to normalize closer to inauguration. The stock has become highly volatile and could face a short squeeze due to significant short interest, low float, and substantial recent losses for short-sellers, S3 Partners wrote.
The squeeze risk indicator was as high as 100% the last time the stock rallied to this level. This indicator takes into account both the size of the short position and the short-term stock return. Simply put, shorts have experienced significant losses recently, and some may cover their positions to reduce risk. This could trigger a short squeeze.