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Technology Stocks : Altaba Inc. (formerly Yahoo)
AABA 19.630.0%Nov 6 4:00 PM EST
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To: fut_trade who wrote (1161)7/31/1997 11:16:00 AM
From: Mighty_Mezz   of 27307
 
Something longs should keep in mind. If the MMs are able to squeeze out most of the shorts, there will be NOBODY to buy your shares once the price starts dropping.
Once the MMs have stopped propping it up and have taken short positions themselves, the fall will be dramatic.

To cite the Forbes article at:
forbes.com

"The short-seller isn't the only victim here. Squeezing the short drives up prices, creating volume and upward action that can attract momentum players. But once the squeeze is over, there's nothing to hold up the price. Moreover, eliminating short-sellers makes it easier to drive up the price of an already overvalued stock".
and
"Which means, among other things, that when the market finally lets go on the down side they won't be there covering their positions and giving the market some support. Neither will many of the marketmakers, who have a habit of not answering their telephones when the market is dropping hard. After all, these dealers can abandon their marketmaking activities in a stock at any time; the only penalty is that they cannot return to that stock for 20 business days. Who, then, will be there to buy?"

Beware of irrational exuberance and never fall in love with a stock.
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