because they have to Cover their "Short Positions" !
* They lose money as the stock climbs !
* Your Buying, Forces them to Buy,
and their Buying, causes the stock to Climb Higher !
The possibility of a "Short Squeeze"
Short Squeeze - What it is:
A short squeeze occurs when the stock's price doesn't decline as anticipated.
A short squeeze is a situation in which a stock's price increase triggers a rush of buying activity among short sellers.
Short sellers must buy stock to close out their short positions and cut their losses, which results in a further increase in stock prices, which compel still more short sellers to cover their positions.
The possibility of a "short squeeze" is one reason some analysts look at a high amount of short interest as a Bullish Indicator.
Short Interest is the fuel, performance is the fuse, says ShortSqueeze.com
MOST all "Gaps" fill. They are caused by "retail emotion", and when emotion leaves, the long share holders, bring the stock price back to a reasonable, average new price level.
"Gaps" don't need to fill. They normally do!
90% of all "Gaps" fill !
If you see a "Gap", expect the price to come back and correct the emotion!
A "Gap" is seen, when the day before close price, is lower then the next mornings open price, or vice versa.