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Sunday, 02/28/2010 5:40:15 PM

Sunday, February 28, 2010 5:40:15 PM

Post# of 179214
Annotated chart of a short squeeze

Hello all -- This is my first post here, but I've been following this board for a while, watching your progress and wondering about short squeezes and trying to learn what happens when they actually occur. I decided to take a look at the chart for the short squeeze of EVCC, which is one of the stocks that Monk mentions as one of his previous short-squeezes. It was really interesting, so i did some annotations, and the chart is below.

A few things to note:

First, this chart starts on October 15 and seems to capture most of the big movement in the short squeeze. As you can see, on November 1 the pps was .60, so you don't have to get into these at .05 or anything like that to make money. Anyone who got in at .60 had a 8-10 bagger on their hands if they had patience.

Second, the short squeeze takes time. There seem to be a number of fake covers, followed by MM shake-outs. These are attempts to convince people that the short position has been covered and that the squeeze is done. I am no expert on short squeezes, but I'd guess you'll see the same thing with CDIV as well.

Finally, one last personal observation -- you guys are trying to beat the MMs at their own game. I'm not saying it can't be done, but my warning to you guys is to remember that they write the rules -- it's going to take a lot of patience and a lot of teamwork (and probably a lot more money, too) for you guys to win this war. The good news is that this board seems to have a lot of patience and a lot of teamwork, and hopefully newcomers (which may include me) will realize that there's still plenty of opportunity for a 5-10 bagger here, and will join in the effort to break the MMs.

Sorry for the long-winded post -- I just find this stuff really interesting, and thought I'd share, and give people an idea of what the squeeze itself looks like. Based on EVCC, it won't happen over one day, and those who have patience and strength not to fold to the MM shake-downs will make the biggest money.

Here's the chart -- if any of you agree of disagree with it, please feel free to comment.

GL to all of you!!! Kick those MM's A$$!!!!