Anavex Life Sciences Corp (AVXL)

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Shorts' Dilemma

Anyone who shorted through last Thursday or Friday should have profited. Any idiots still short on AVXL over this weekend now face their worst-case scenario on Monday. The spectacular news (1drvDOTms/1Pw00Sr) on Saturday, together with the PR at 9 AM tomorrow, is going to send the stock price up.

Now shorts have to figure out if they will try to buy-to-close in pre-market or wait until the market opens regular trading hours. The first shorts to buy-to-close will capture the largest profits, but their buys will move the price up for the remaining short positions. The last shorts to cover will be the biggest losers.

As remaining shorts fight each other and everyone else trying to buy, trying to capture as much of their remaining paper profits as possible, they will drive the price higher as they do so.

NASDAQ pre-market opens at 4 AM EST. Let the games begin!