Relevant:
- Butler: Silver Shorts Moving to SLV
- COTs - Speculative Positions - Short Squeeze Coming in PMs?
- Report: "Three-Quarters Of Today's Market Surge Is From A Massive Short Squeeze"
- The Gamers' Uprising Against Wall Street Has Deep Populist Roots
- Alasdair MacLeod - Gold & Silver futures market heading for crisis
2008-09-19 — ml-implode.com
Thought I’d contribute my two cents about today’s rally. The reason the market spiked had nothing to do with fundamentals. The shorts got squeezed.
What would happen if LOTS of people were short a particular stock and they ALL decide to close out their position at the same time? All those people would have to buy shares in order to exit their short positions. And lots of buyers buying simultaneously will drive a stock up.
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