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Gold/Mining/Energy : Daytrading Canadian stocks in Realtime

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To: WhatsUpWithThat who wrote (12614)5/12/1999 5:00:00 PM
From: WhatsUpWithThat  Read Replies (4) of 62348
 
OK, I gotta dare to ask newbie questions or I'll never know: can anyone tell me the mechanics of a short squeeze?

Shorting means borrowing the shares and selling them at $X, hoping to re-buy to replace them at $X-n, where n hopefully is substantial.

Why a squeeze, if the stock is otherwise stable? Why, for example, with BII sliding and sliding over the week, with nothing to push it up, would *nothing* apparently trigger shorts covering? Or does a squeeze only happen when there is some other trigger to start an uptick and shorts covering only accentuates the move, sort of like stop losses kicking in accentuates a drop on other news?

Many thanks,
WUWT
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