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Re: bigjoejack post# 43668

Friday, 03/19/2010 10:30:38 PM

Friday, March 19, 2010 10:30:38 PM

Post# of 58002
bigjoejack,

A squeeze happens when someone has sold a lot of the stock short and then the price starts to rise. The short seller is forced to buy back at a higher price to cover his short position. If the short seller has sold a big enough position, then buying back all that stock accelerates the price increase and they have no choice but to continue buying until they have covered. Hence the term "squeeze".