Cytodyn Inc (CYDY)

[Scooter McCabe]

Short Report

So based on the mid-day activity we can assume there were some shares shorted in hopes of a lackluster end of day. Tomorrow's report will tell the tale if further short activity was directed at CYDY.

https://www.otcshortreport.com/company/CYDY

From the above link just looking at the last week and a half enough short shares keep making headlong charges into a bull movement on the charts. This is contributing to a feedback loop that will continue as shorts keep chasing losses.

What is loss chasing? Well to use a gambling analogy you play a hand of blackjack for 20 dollars and lose. You decide to try and win it back immediately and put down a 40 dollar bet. The win would cover the loss. Instead you lose. So now you need to put down 80 to come out alright.

This kind of mentality can create significant losses for anyone attempting it. In terms of the stock market as long as investors remain bullish it will turn into a loss for short investors everytime.

The consequence is the share price being pushed up by the demand to cover. On top of good news, word of mouth and general speculation this can cause the stock to go leaps and bounds. Which we are seeing now.

Now good news and test results will always outweigh shorts being squeezed, so should short selling drop off or disappear the stock will continue to move.

Cheers