We may be at the beginning of one of the biggest short squeezes in history as people believed the fake media about the economy going in a depression for some time to come while in reality it may be surging this summer/fall. If so, knowing when to get out will be a big deal.
What Is a Short Squeeze?
A short squeeze occurs when a stock or other asset jumps sharply higher, forcing traders who had bet that its price would fall to buy it in order to forestall even greater losses. Their scramble to buy only adds to the upward pressure on the stock's price
A short squeeze occurs when a stock or other asset jumps sharply higher, forcing traders who had bet that its price would fall to buy it in order to forestall even greater losses. Their scramble to buy only adds to the upward pressure on the stock's price
A survey was release last week showing that 70% of the money managers thought we were in a bear market rally. If they thought that then most would have been short the market. That's pretty much all you have been hearing from CNBC.....bear market rally......bear market rally....
....since March lows. Hell, they might be right but what if they are wrong? What if Trump is right and the economy explodes upwards in a V and they are all short the market? What if the economy just rebounds in a U shape and they are all short?
Can you say SHORT SQUEEZE? But be aware a short squeeze is a technical glitch that causes share prices to skyrocket higher for a short time until they can cover their shorts. So, if you hold through the Squeeze chances are when it's over the prices will fall. Sometimes by a lot.
Will we see a short squeeze? Will we see a rocket launch higher and then a swift fall back to earth? Who knows, but that's what makes it fun to watch. No one knows...So step right up ladies and gentlemen and place your bets. The game is always open and the house tends to win.
