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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: Softechie who wrote (57700)7/3/2000 12:06:46 PM
From: Cautious_Optimist  Read Replies (2) of 122087
 
>>GO WITH THE CROWD! That's how they make fast money on Internet stocks!<<

Squeezes are somewhat like splits in the sense that they are not particularly relevant economic events. Traders love 'em because of the magic fad of signalling and greater-fools buying. Splits as an indicator can do nicely long-term merely because they tend to be correlated to good growth stocks. Just as short squeezes are correlated with stocks that are falling...

For the segment of investors who use shorts to decrease risk as part of an diverse portfolio, a squeeze is no big deal. We are in two different camps, viva la difference.
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