u********e
发帖数: 4950 | 1 其实熊市中不乏强烈的反弹，这些强烈反弹有一部分可能要归功于short squeeze.
When a stock is sold short, the sellers always represent future demand for
the stock because they must repurchase shares they sold short at some future
date either to close out a winning trade or to minimize their losses.
A short squeeze develops when those who sold short the stock, expecting it
to declining in price, change their minds about the trade and attempt to
cover their position before the market advances and large losses accumulate.
There could be a lot of things to cause the short squeeze. Some of the
samples are:
(1) Naturally profit taking short squeezing
After experiencing a sharp decline of the stock prices, most of the
short positions initiated on the beginning of the declining were at a profit
. Once the stock price stopped declining, some of the ITM short sellers
would come to the market to buy back the stocks even when the real long
might be still scared. These short covering sometimes might cause a upside
spiral which cause seller to pull back their ask and induce real longs and
more short covering.
(2) Margin call forced buy short squeeze
There are times when short sellers find themselves in a position of
being forced by their brokerage firm to repurchase shares that have been
sold short. The margin call might force short sellers (or their brokerages)
to chase the stock up in a crazy mode. And the fear of unlimited losses
will further magnitude this type of short squeeze.
Usually, this kind of short squeeze could occur after some surprise
events.
(3) Illegal "naked" short position forced buy short squeeze
According to the current law, it is illegal to hold a "naked" short position
. So the short seller have to borrowed the shares before they can establish
the short position. Sometimes, the lender of the shares will change their
mind either want to sell the stock by themselves or don't want to lend the
shares to short sellers any more. When the long holders of the stock who
have allowed shares to be borrowed for a short position liquidate their
holdings ( or withdraw from their share lending), the brokerage firm will
have to demand the short sellers who have borrowed those shares either find
other shares to borrow or force to buy back the stock.
Or in other words, the short sellers short position is really at the mercy
of the longs who lend the shares to them. Sometimes, some large long
holders might purposely allow their stock to be borrowed at the beginning
and suddenly demands that the shares loaned out be delivered back
immediately. On this condition, the borrowers are stuck looking for new
shares to borrow or purchasing the shares from the market. In
effect, the longs set the shorts up to be squeezed in this case.
And this can happen at almost 0 cost for longs since all it takes for the longs to demand
the shares back is just to put up a LIMITED sell order. They might not want
to sell the stock in real (i.e, they could just put up a sell order to sell
a $10 stock at $1000).
Anyway, because the high risk and unfair environment listed above, most
short sellers are sophisticated speculators who are supposed to have done
very extensive research on their short selling decisions and to have very
good trading disciplines. The short squeeze itself is partly due to short
seller's good trading discipline.
For longs, a better understanding of the short selling will help you to make
better decision when to buy for the rebound and when to not. Also,
sometimes, collectively, the longs might be able to create the squeeze for
the short sellers easily by putting up a "faked" SELL order on the book.
Be careful, bears.:)
Have a great weekend! | k*******n
发帖数: 8891 | | u********e
发帖数: 4950 | 3 小母牛真体谅人，有你这句话就不辛苦鸟，哈哈
【在 k*******n 的大作中提到】
: 斑竹辛苦鸟，夜宵加个荷包蛋，哈哈哈 z Z
| u********e
发帖数: 4950 | 4 Be aware what sell is real money outflow and what is not . :)
Short interest data: www.nasdaq.com | u********e
发帖数: 4950 | | g********5
发帖数: 10335 | 6 original ? kaka
mark
【在 u********e 的大作中提到】
: 如有不当之处,欢迎大家指正哈
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