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Jim Cramer Warns Nvidia And Apple Shorts May Let Stocks Rally Before Striking Again: 'Only Way They Can Get Out Of This Mess'

CNBC’s Jim Cramer believes that heavily shorted stocks, Nvidia Corp. (NASDAQ:NVDA) and Apple Inc. (NASDAQ:AAPL), are likely to rally before the short sellers initiate further downward pressure on them immediately.

What Happened: According to Cramer, X post, the short sellers will wait for the stocks to increase in price before attempting to drive them down again.

This strategy, according to the host of ‘Mad Money,’ is the only viable way for the short sellers to “get out of this mess,” because by allowing a rally, they create an opportunity to cover their short positions at a potentially lower price after a subsequent decline.

Cramer thinks that short sellers are in a “mess” because of the recent rally in the stock prices, which can potentially create a short squeeze, forcing the short sellers out at a higher price.

This stems from the goal of a short seller to sell high and buy low. Therefore, they want to “cover” their short positions, which is to buy back the ...

https://www.benzinga.com/25/04/44787213/jim-cramer-predicts-short-sellers-to-attack-nvidia-and-apple-after-a-rally-only-way-they-can-get-out-of-this-mess