When you say OTC issues, I assume you are referring to the bulletin board market. Since I work for one of the largest MM's on the street and deal only in NMS securities, it is tough for me to comment on this sector of the marketplace. Among professional MM's, however, it is generally thought that the bulletin board market is for suckers...anecdotes about the type of stuff that happens there are common. I have never and probably will never invest a dime in any BB stock. The WSJ had some good stories about upcoming measures the NASD is taking to clean this market up.
No one I work with, to my knowledge, follows or cares about anything that is said on SI. The short-squeeze talk that pops up on SI is, in my estimation, amateurish and often absurd...not to say short squeezes don't happen, because they do; anyone posting on the internet about an incipient short-squeeze and urging others to jump in, however, should be ignored. If you want to take advantage of short covering, do some research and make up a list of the 10 or 20 stocks with the largest short ratios in the market (VERY easy to do). Set these stocks up on your ticker and watch them every day for positive news; watch the charts for price appreciation also. Piggyback on the short covering with a position trade when you think the time is right. |
