Replies to post #143207 on Lightwave Logic Inc (LWLG)

[Lewrock]

A short squeeze happens when almost all of the trading volume is shorts capitulating (buying) at the same time new shorts are establishing new positions (selling).

When the buyers are covering their short position and the sellers are less sophisticated short sellers establishing new positions, the price can rise while the short interest stays very high. Usually this happens when the smart money is also buying and covering a short position becomes increasingly difficult. Buy stop orders are triggered causing short sellers to drive the price higher as they try to limit their losses. Because the buyers/owners strongly believe in the integrity of the management, they are not willing to sell. As the price of the stock vaults higher, the only way for the shorts to limit their losses is to buy at the market which drives the price even higher. It becomes a frenzy!

[pitcook]

How was it when we made our run to $20 and we were going up a couple dollars or more on some days, it was the quality of the GOO, and the company. But now we’re up five $.25 pieces and it is some kind of short covering? My thoughts, and historically some recent stocks with Robin Hood and Reddit involved in Short coverings stocks were going up many more times at a much higher percentage than this is.

So are you saying if this was not Shorts covering our stock would be flat or down?