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Re: TaoChange post# 18273

Tuesday, 04/20/2010 10:57:54 AM

Tuesday, April 20, 2010 10:57:54 AM

Post# of 34483
No matter is volume dries up, the MM still have to cover. There is someone ALWAYS willing to sell at their price. I have a few asks out there for .01 and over. So MM pretty much have to gap up and purchase at the next ask price available to get their shares. Once they get through all of those they have to purchase at the next ask price. If im not mistaken they have 15 days to cover from the time of shorting. During the "Short Squeeze" there is a huge increase in volume as the MM try to cover and cover for as little as they can. Even if this means the next ask price. So the little volume to awesome. Means they need to cover some of their shares today, so we should see some buys coming in on the ask and pushing it up, as the MM try to cover.

This is all given that no one dumps a couple million shares to them.

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