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Re: KNTSKC post# 60434

Wednesday, 08/30/2006 12:44:59 PM

Wednesday, August 30, 2006 12:44:59 PM

Post# of 169277
Yes. I was taught by a "master" - the best way to KNOW when a short squeeze is underway is to see who's set up at the bid. Certain combinations of "players" will appear...they would normally not be seen together unless there was a "problem."

I hate to shatter the long's hopes - but don't ever think shorts cover at the ask. Shorts do not trade like we do. They will cover at the BID, and if they are fat and wealthy enough, they will orchestrate six or seven MMs on both sides of the spread.

Basically, shorty will be selling NEW "air shares" on the ask - and use that profit to buy back "air shares" on the bid. In so doing, he clears up his oldest positons, and opens a whole new short position FOR A NET PROFIT!

He can do this forever. It's exactly the same principle as check kiting - as long as you keep up with the clearing cycle, you can keep writing bad checks forever - for more and more money.

The really beautiful part is, eventually Shorty has dumped enough bogus shares that the entire market collapses on the first hint of bad news. That's called VICTORY.


Good stocks are obvious. Extensive DD is how you convince yourself to buy a bad one.

>^..^<
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