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Strategies & Market Trends : Roger's 1997 Short Picks

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To: edgedirect who wrote (2883)5/25/1997 1:24:00 PM
From: Roger A. Babb   of 9285
 
Andrew, a squeeze and a call for return of borrowed shares are very different things. The return calls are very rare and even when made are often not executed, I ignore them.

A squeeze is when the price goes up and shorts without adequate reserves are forced to cover at a loss thus forcing the price up even more. I carry adequate reserves so that all of my short positions could double without my being forced to cover.

But anytime a short position is going against you, you should re-evaluate on a daily basis, the market may be giving you a message or it may be that the stock is just responding to hype.
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