Houston American Energy (HUSA) is a small cap energy exploration and development company focused on natural gas and oil properties in southwest United States. Founded in 1981, the company owns interests in Texas, Louisiana and now Columbia. Despite its position in a favorable sector Houston American Energy has been the target of short sellers. With nearly 30% of the 16-million share float held short, HUSA has a huge crowd betting against it.

Although the massive percentage of short sellers and lack of employees is troubling, HUSA could be set up for a massive short squeeze. The average daily volume is just 150,000 shares, yet 4-million shares are held short. Based on these figures shorts would need 26 days to completely cover their positions. Shorts could give HUSA the fuel it needs to attack previous all time highs. While HUSA is far from a legitimate “long term” investment, it could squeeze higher in the near term. The chart shown shows clear support and resistance levels, along with a sharp breakout.

Note: Houston American Energy was attacked in 2010 by the legendary Andrew Left of Citron Research. While the report is truthful in nature, too many people piled into the wrong side of the trade short term. HUSA is now near all time highs and continues to squeeze higher despite negative research reports.

ICO Global Communications is a space bound company operating medium orbit based satellites. The company aims to provide wireless voice, video and internet services in the United States. While the company has an exciting business model it is important to note that ICO filed for Chapter 11 bankruptcy in 2009. Showing 51-million in cash and just 15-million in debt, ICOG seems like it has found its financial footing for the time being. Despite past financial hardships, the company is heavily owned by insiders and institutions with 24% and 34% respectively.

The company has been the target of short sellers the past 3-years since its Chapter 11 filing. Making a low of just .12 in late 2009 the stock is now valued at $3.23 as of June 24, 2011 at market close. Although the company is speculative in nature and has seen major upside already, we believe another push up could be just around the corner. The Russel 2000 index re-balancing last Friday resulted in a major move higher for ICOG on heavy volume at the close. As the stock punches through old highs some of the 6% (4.2 million) share short interest should begin covering. If the overall market can hold steady, we think ICOG can reach $3.60 in the near term based on its chart.

Mips Technologies (NASDAQ: MIPS) is a small cap semiconductor company with a market cap of 350-million. The California based company has been in a steep downtrend since peaking in January 2011. Recent candlestick and trendline analysis suggests MIPS may be ripe for a short term run up fueled by its 14% short interest. The chart below shows a possible trendline break developing.

With several Japanese auto manufacturers weakened by climatic events, Ford Motors (NYSE: F) may have got the break it badly needed. Both Honda and Toyota motors have been weakened from the destruction overseas. Coincidentally, Ford and General Motors have seen some buying activity on speculation of increased market share. The chart clearly shows an upsloping support line providing support to the stock. We used the latest test of this line as a buying opportunity.