Quote:
Originally Posted by PoorLurker
I believe he is referring to "squeezing short sellers"
Short sellers buy at a price with the expectation that it will start going down.
Once the price goes in a direction where the "shorts" don't feel comfortable, they start "buying to cover" their shares. This often causes people to start buying them up. When people are buying the shares, the bid/ask price continues to go up "squeezing" the shorts out of their positions because they are trying to "cover" their minimal gains or their losses. Kind of like when people start panicking and the price continues to plummet but the price goes up instead.
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To compound on this, typically it's not so much a strategy a single small group makes. It's usually a MM or the actual company holding on to PR until just the right time to trap. Companies that "whore" out PRs aren't really able to trap shorts since the shorts know exactly what's going on. Transparency isn't ALWAYS a good thing in the market
