Short Squeeze
What does the Short Squeeze mean?
 A short squeeze occurs when Traders that were short cover their position. Perhaps the market was negative and day traders thought the direction is down. This means they will try to make money on the way down by selling the stock (going short) and buying it back at a later time. The difference is the profit.
Trading Psychology Upward Trend
1. Sometimes an area of resistance causes many shorters to cover. At a certain point a stock has shown support so psycologically it has strength at that point and those who look at it expect a possible change in sentiment when it touches that level..
2. Sometimes day traders sell on a nice downward trend and suddenly the stock spikes up causing them to loose on their position even though the dorection they chose was right.
3. The short squeeze often happens in th emarket just before close.
|
