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.
SUGO chart clearly shows, that the "short volume" grew, from January 31st to February 15th, and that the "shorts", having to cover their positions, ignited a huge Rally !!
again, ...just as they did this past Feb/Mar, Buyers will come out with a vengence, causing the price of the stock to rise.
The Buying, will dramatically reduce the 221 Million shares, that are sitting on the "Ask", currently.
As the price rises, the "shorts" will get "squeezed" into Buying, trying desperately to cover their "short positions", and their Buying will add to the Buying, that is already happening, and what you'll have then, is a full blown Rally, otherwise known as a "Short Squeeze".
This is how a Promoter, can cause a Rally.... on the heels of a massive amount of shorting.
This is why, you will want to keep a close eye, on stocks with a huge amount of "short volume", and " % change in short interest ".
The "Short Squeeze" > Any encouraging news from SUGO, could lead to a wave of short sellers, trying to buy stock and limit their losses, pushing the price higher.
"Never Short a Dull market"
From May 16 - May 31, 87,103,936 shares have been shorted !!
When these "Shorts" begin covering their "short positions", by "buying back" these shares, "buying pressure" will cause the stocks price to rise.
In the event, that any form of "Bullish" news is released, the "Shorts" will be forced to "cover their positions", because as the stocks price rises, they will lose money !
SUGO Historical Shorting
Date Vol Shorted %Chg Short Vol Regular Vol
Jun 08 100.00%...2,799,998...2,799,998 Jun 07 100.00%.....200,000.......200,000 Jun 01 100.00%...6,549,999...6,549,999
From May 16 - May 31 Total Short Vol = 87,103,936
May 31 100.00%...2,000,000...2,000,000 May 30 100.00%...5,000,000...5,000,000 May 29 100.00%...4,600,000...4,600,000 May 25 100.00%...5,162,499...5,162,499 May 24 47.49%...30,395,900..64,000,000 May 23 100.00%...3,599,997...3,599,997 May 22 99.65% ...1,412,500...1,417,500 May 21 72.22%...33,966,988..47,029,561 May 16 0.99%.......966,052..97,146,302