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Strategies & Market Trends : Piffer OT - And Other Assorted Nuts

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To: Jorj X Mckie who wrote (23279)3/13/2000 6:18:00 PM
From: Junkyardawg  Read Replies (1) of 63513
 
Jorj,what do you think about this theory of mine.
I conclude this theory after being in RMBS.
I no longer think a squeeze happens on the day of the rise. I think it usually happens at least two days after first run in the price of the stock.
My thinking....brokerages will run out of shares of INPH probably tomorrow or Wed. Then they will call in the shares that the shorts have shorted. Remember, short shares are "borrowed" shares and can be called in for any reason. A short does not have to be out of the money or in margin call range to get his stock called in. Simply put, it is not his stock and he must return it if he gets the call. If this happens there is the normal settlement date for the shares to hit the accounts. So if this is true then we may not get a true squeeze on INPH until Wed. or maybe even Thur.

I saw this happen with RMBS when the stock ran up from $77 to $96 then it ran back down fast and hard back to $85 or so. The next day the same thing happened. It ran up and then back down. On the third day it ran and never looked back. In my opinion the shorts on RMBS got called in and they had three days to cover. Of course a true shorter said no way this stock can keep going so they short it again. All the while RMBS comes out with great news and kills the shorts. So of course the same thing happens again.

Whatcha think? Stupid theory?
dawg
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