Many investors have likely heard the mantra: "Bulls make money, bears make money, but pigs get slaughtered." In 2021, the bulls became pigs when they ignored the looming threat of inflation and rising interest rates. In 2022, the bears profited from that greed as the S&P 500 and Nasdaq declined 19% and 33%, respectively.

But today, the winds seem to be blowing in the opposite direction again. The market's valuations are cooling off, and the macroeconomic headwinds are arguably subsiding, but plenty of stocks are still heavily shorted -- which could make them potential candidates for big short squeezes.

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Source Fool.com