Tag: short selling

V-Reversals and Legal Short Selling

By John Jagerson

The US government seems to be successfully turning the tide of investor sentiment in the stock market today. The Securities and Exchange Commission has taken the attitude that if you cannot convince the bears to become bulls then just ban them from participating in the market. The SEC did this by taking a very unusual … Continued

Short Squeezes

By John Jagerson

The basic idea behind a short squeeze is to look for a stock that a lot of traders have been shorting in the recent past (this is a very bearish thing to do) and then are reversing direction and covering those trades by buying the stock. All this buying creates a positive feedback cycle by … Continued