CHARTSTALKER

[mcmike]

EZTO: smack dab in the middle of a short squeeze

Paraphrased from BOT livechat this afternoon with a caveat that I don't pretend to be as adept as the speaker.



EZTO made a large move in the last 10 days to more than double from the .04 area. A short position was established that put a lid on the share price in the .09 to .103 area last Thursday and Friday.

This was noticed and, combined with Lebed's missive (posted numerous times on ihub over the weekend) and the eod action Friday that excited traders, set up a situation of "ask whacking?!" driving the share price higher. Any time some selling would come in, bidding through the large ECNs would reestablish support whereever two market makers were underneath. When the ask would come down, and never very thick, the SS (shortsqueezers) would hit the ask and drive the share price up, establish new and higher bid support, and forcing some covering and a new hod. This was repeated several (numerous?) times driving the share price higher and higher.

It was next to impossible to get fills on the way up today.
Consensus on the livechat was that there are a couple of more days to this setup. A couple of the more knowledgeable (IMO) traders thought that .25-.30 could be this week's top.

Please be advised that I have no clue and am not long at the present. I got filled 2x, on pullbacks only, and wish i'd held them all!

I may have missed a bit of the play by play of this setup, but this is what I gleaned and remember... Play at your own risk please.